þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Illinois | 36-3873352 |
(State of incorporation or organization) | (I.R.S. Employer Identification No.) |
Large accelerated filer | þ | Accelerated filer | ¨ | ||||
Non-accelerated filer | ¨ | (Do not check if a smaller reporting company) | Smaller reporting company | ¨ |
Page | ||
PART I. — FINANCIAL INFORMATION | ||
ITEM 1. | ||
ITEM 2. | ||
ITEM 3. | ||
ITEM 4. | ||
PART II. — OTHER INFORMATION | ||
ITEM 1. | ||
ITEM 1A. | ||
ITEM 2. | ||
ITEM 3. | Defaults Upon Senior Securities | NA |
ITEM 4. | Mine Safety Disclosures | NA |
ITEM 5. | Other Information | NA |
ITEM 6. | ||
WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CONDITION | |||||||||||
(Unaudited) | (Unaudited) | ||||||||||
(In thousands, except share data) | September 30, 2016 | December 31, 2015 | September 30, 2015 | ||||||||
Assets | |||||||||||
Cash and due from banks | $ | 242,825 | $ | 271,454 | $ | 247,341 | |||||
Federal funds sold and securities purchased under resale agreements | 4,122 | 4,341 | 3,314 | ||||||||
Interest bearing deposits with banks | 816,104 | 607,782 | 701,106 | ||||||||
Available-for-sale securities, at fair value | 1,650,096 | 1,716,388 | 2,214,281 | ||||||||
Held-to-maturity securities, at amortized cost ($942.7 million and $878.1 million fair value at September 30, 2016 and December 31, 2015, respectively) | 932,767 | 884,826 | — | ||||||||
Trading account securities | 1,092 | 448 | 3,312 | ||||||||
Federal Home Loan Bank and Federal Reserve Bank stock | 129,630 | 101,581 | 90,308 | ||||||||
Brokerage customer receivables | 25,511 | 27,631 | 28,293 | ||||||||
Mortgage loans held-for-sale | 559,634 | 388,038 | 347,005 | ||||||||
Loans, net of unearned income, excluding covered loans | 19,101,261 | 17,118,117 | 16,316,211 | ||||||||
Covered loans | 95,940 | 148,673 | 168,609 | ||||||||
Total loans | 19,197,201 | 17,266,790 | 16,484,820 | ||||||||
Allowance for loan losses | (117,693 | ) | (105,400 | ) | (102,996 | ) | |||||
Allowance for covered loan losses | (1,422 | ) | (3,026 | ) | (2,918 | ) | |||||
Net loans | 19,078,086 | 17,158,364 | 16,378,906 | ||||||||
Premises and equipment, net | 597,263 | 592,256 | 587,348 | ||||||||
Lease investments, net | 116,355 | 63,170 | 29,111 | ||||||||
Accrued interest receivable and other assets | 660,923 | 597,099 | 629,211 | ||||||||
Trade date securities receivable | 677 | — | 277,981 | ||||||||
Goodwill | 485,938 | 471,761 | 472,166 | ||||||||
Other intangible assets | 20,736 | 24,209 | 25,533 | ||||||||
Total assets | $ | 25,321,759 | $ | 22,909,348 | $ | 22,035,216 | |||||
Liabilities and Shareholders’ Equity | |||||||||||
Deposits: | |||||||||||
Non-interest bearing | $ | 5,711,042 | $ | 4,836,420 | $ | 4,705,994 | |||||
Interest bearing | 15,436,613 | 13,803,214 | 13,522,475 | ||||||||
Total deposits | 21,147,655 | 18,639,634 | 18,228,469 | ||||||||
Federal Home Loan Bank advances | 419,632 | 853,431 | 443,955 | ||||||||
Other borrowings | 241,366 | 265,785 | 259,805 | ||||||||
Subordinated notes | 138,943 | 138,861 | 138,834 | ||||||||
Junior subordinated debentures | 253,566 | 268,566 | 268,566 | ||||||||
Trade date securities payable | — | 538 | 617 | ||||||||
Accrued interest payable and other liabilities | 446,123 | 390,259 | 359,234 | ||||||||
Total liabilities | 22,647,285 | 20,557,074 | 19,699,480 | ||||||||
Shareholders’ Equity: | |||||||||||
Preferred stock, no par value; 20,000,000 shares authorized: | |||||||||||
Series C - $1,000 liquidation value; 126,257 shares issued and outstanding at September 30, 2016, 126,287 shares issued and outstanding at December 31, 2015, and 126,312 shares issued and outstanding at September 30, 2015 | 126,257 | 126,287 | 126,312 | ||||||||
Series D - $25 liquidation value; 5,000,000 shares issued and outstanding at September 30, 2016, December 31, 2015 and September 30, 2015 | 125,000 | 125,000 | 125,000 | ||||||||
Common stock, no par value; $1.00 stated value; 100,000,000 shares authorized at September 30, 2016, December 31, 2015 and September 30, 2015; 51,811,204 shares issued at September 30, 2016, 48,468,894 shares issued at December 31, 2015 and 48,422,294 shares issued at September 30, 2015 | 51,811 | 48,469 | 48,422 | ||||||||
Surplus | 1,356,759 | 1,190,988 | 1,187,407 | ||||||||
Treasury stock, at cost, 96,521 shares at September 30, 2016, 85,615 shares at December 31, 2015, and 85,424 shares at September 30, 2015 | (4,522 | ) | (3,973 | ) | (3,964 | ) | |||||
Retained earnings | 1,051,748 | 928,211 | 901,652 | ||||||||
Accumulated other comprehensive loss | (32,579 | ) | (62,708 | ) | (49,093 | ) | |||||
Total shareholders’ equity | 2,674,474 | 2,352,274 | 2,335,736 | ||||||||
Total liabilities and shareholders’ equity | $ | 25,321,759 | $ | 22,909,348 | $ | 22,035,216 |
WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
(In thousands, except per share data) | September 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | |||||||||||
Interest income | |||||||||||||||
Interest and fees on loans | $ | 190,189 | $ | 167,831 | $ | 541,846 | $ | 482,330 | |||||||
Interest bearing deposits with banks | 1,156 | 372 | 2,695 | 993 | |||||||||||
Federal funds sold and securities purchased under resale agreements | 1 | 1 | 3 | 4 | |||||||||||
Investment securities | 15,496 | 16,130 | 49,084 | 44,601 | |||||||||||
Trading account securities | 18 | 19 | 43 | 83 | |||||||||||
Federal Home Loan Bank and Federal Reserve Bank stock | 1,094 | 821 | 3,143 | 2,375 | |||||||||||
Brokerage customer receivables | 195 | 205 | 630 | 591 | |||||||||||
Total interest income | 208,149 | 185,379 | 597,444 | 530,977 | |||||||||||
Interest expense | |||||||||||||||
Interest on deposits | 15,621 | 12,436 | 41,996 | 36,246 | |||||||||||
Interest on Federal Home Loan Bank advances | 2,577 | 2,458 | 8,447 | 6,426 | |||||||||||
Interest on other borrowings | 1,137 | 1,045 | 3,281 | 2,620 | |||||||||||
Interest on subordinated notes | 1,778 | 1,776 | 5,332 | 5,328 | |||||||||||
Interest on junior subordinated debentures | 2,400 | 2,124 | 6,973 | 6,034 | |||||||||||
Total interest expense | 23,513 | 19,839 | 66,029 | 56,654 | |||||||||||
Net interest income | 184,636 | 165,540 | 531,415 | 474,323 | |||||||||||
Provision for credit losses | 9,571 | 8,322 | 26,734 | 23,883 | |||||||||||
Net interest income after provision for credit losses | 175,065 | 157,218 | 504,681 | 450,440 | |||||||||||
Non-interest income | |||||||||||||||
Wealth management | 19,334 | 18,243 | 56,506 | 54,819 | |||||||||||
Mortgage banking | 34,712 | 27,887 | 93,254 | 91,694 | |||||||||||
Service charges on deposit accounts | 8,024 | 7,403 | 23,156 | 20,174 | |||||||||||
Gains (losses) on investment securities, net | 3,305 | (98 | ) | 6,070 | 402 | ||||||||||
Fees from covered call options | 3,633 | 2,810 | 9,994 | 11,735 | |||||||||||
Trading (losses) gains, net | (432 | ) | (135 | ) | (916 | ) | (452 | ) | |||||||
Operating lease income, net | 4,459 | 613 | 11,270 | 755 | |||||||||||
Other | 13,569 | 8,230 | 40,821 | 27,380 | |||||||||||
Total non-interest income | 86,604 | 64,953 | 240,155 | 206,507 | |||||||||||
Non-interest expense | |||||||||||||||
Salaries and employee benefits | 103,718 | 97,749 | 300,423 | 282,300 | |||||||||||
Equipment | 9,449 | 8,456 | 27,523 | 24,090 | |||||||||||
Operating lease equipment depreciation | 3,605 | 431 | 9,040 | 547 | |||||||||||
Occupancy, net | 12,767 | 12,066 | 36,658 | 35,818 | |||||||||||
Data processing | 7,432 | 8,127 | 21,089 | 19,656 | |||||||||||
Advertising and marketing | 7,365 | 6,237 | 18,085 | 16,550 | |||||||||||
Professional fees | 5,508 | 4,100 | 14,986 | 13,838 | |||||||||||
Amortization of other intangible assets | 1,085 | 1,350 | 3,631 | 3,297 | |||||||||||
FDIC insurance | 3,686 | 3,035 | 11,339 | 9,069 | |||||||||||
OREO expense, net | 1,436 | (367 | ) | 3,344 | 1,885 | ||||||||||
Other | 20,564 | 18,790 | 55,196 | 54,539 | |||||||||||
Total non-interest expense | 176,615 | 159,974 | 501,314 | 461,589 | |||||||||||
Income before taxes | 85,054 | 62,197 | 243,522 | 195,358 | |||||||||||
Income tax expense | 31,939 | 23,842 | 91,255 | 74,120 | |||||||||||
Net income | $ | 53,115 | $ | 38,355 | $ | 152,267 | $ | 121,238 | |||||||
Preferred stock dividends and discount accretion | 3,628 | 4,079 | 10,884 | 7,240 | |||||||||||
Net income applicable to common shares | $ | 49,487 | $ | 34,276 | $ | 141,383 | $ | 113,998 | |||||||
Net income per common share—Basic | $ | 0.96 | $ | 0.71 | $ | 2.84 | $ | 2.39 | |||||||
Net income per common share—Diluted | $ | 0.92 | $ | 0.69 | $ | 2.72 | $ | 2.29 | |||||||
Cash dividends declared per common share | $ | 0.12 | $ | 0.11 | $ | 0.36 | $ | 0.33 | |||||||
Weighted average common shares outstanding | 51,679 | 48,158 | 49,763 | 47,658 | |||||||||||
Dilutive potential common shares | 4,047 | 4,049 | 3,931 | 4,141 | |||||||||||
Average common shares and dilutive common shares | 55,726 | 52,207 | 53,694 | 51,799 |
Three Months Ended | Nine Months Ended | ||||||||||||||
(In thousands) | September 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | |||||||||||
Net income | $ | 53,115 | $ | 38,355 | $ | 152,267 | $ | 121,238 | |||||||
Unrealized gains (losses) on securities | — | ||||||||||||||
Before tax | 2,525 | 31,268 | 33,669 | 4,144 | |||||||||||
Tax effect | (993 | ) | (12,273 | ) | (13,225 | ) | (1,645 | ) | |||||||
Net of tax | 1,532 | 18,995 | 20,444 | 2,499 | |||||||||||
Reclassification of net gains (losses) included in net income | |||||||||||||||
Before tax | 3,305 | (98 | ) | 6,070 | 402 | ||||||||||
Tax effect | (1,300 | ) | 38 | (2,386 | ) | (158 | ) | ||||||||
Net of tax | 2,005 | (60 | ) | 3,684 | 244 | ||||||||||
Reclassification of amortization of unrealized losses on investment securities transferred to held-to-maturity from available-for-sale | |||||||||||||||
Before tax | (3,781 | ) | — | (11,038 | ) | — | |||||||||
Tax effect | 1,486 | — | 4,331 | — | |||||||||||
Net of tax | (2,295 | ) | — | (6,707 | ) | — | |||||||||
Net unrealized gains (losses) on securities | 1,822 | 19,055 | 23,467 | 2,255 | |||||||||||
Unrealized gains (losses) on derivative instruments | |||||||||||||||
Before tax | 2,773 | 99 | 2,728 | (247 | ) | ||||||||||
Tax effect | (1,090 | ) | (39 | ) | (1,072 | ) | 97 | ||||||||
Net unrealized gains (losses) on derivative instruments | 1,683 | 60 | 1,656 | (150 | ) | ||||||||||
Foreign currency adjustment | |||||||||||||||
Before tax | (2,237 | ) | (8,682 | ) | 6,966 | (18,900 | ) | ||||||||
Tax effect | 593 | 2,345 | (1,960 | ) | 5,034 | ||||||||||
Net foreign currency adjustment | (1,644 | ) | (6,337 | ) | 5,006 | (13,866 | ) | ||||||||
Total other comprehensive income (loss) | 1,861 | 12,778 | 30,129 | (11,761 | ) | ||||||||||
Comprehensive income | $ | 54,976 | $ | 51,133 | $ | 182,396 | $ | 109,477 |
WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (UNAUDITED) | |||||||||||||||||||||||||||
(In thousands) | Preferred stock | Common stock | Surplus | Treasury stock | Retained earnings | Accumulated other comprehensive loss | Total shareholders’ equity | ||||||||||||||||||||
Balance at January 1, 2015 | $ | 126,467 | $ | 46,881 | $ | 1,133,955 | $ | (3,549 | ) | $ | 803,400 | $ | (37,332 | ) | $ | 2,069,822 | |||||||||||
Net income | — | — | — | — | 121,238 | — | 121,238 | ||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | — | (11,761 | ) | (11,761 | ) | ||||||||||||||||||
Cash dividends declared on common stock | — | — | — | — | (15,746 | ) | — | (15,746 | ) | ||||||||||||||||||
Dividends on preferred stock | — | — | — | — | (7,240 | ) | — | (7,240 | ) | ||||||||||||||||||
Stock-based compensation | — | — | 7,817 | — | — | — | 7,817 | ||||||||||||||||||||
Issuance of Series D preferred stock | 125,000 | — | (4,158 | ) | — | — | — | 120,842 | |||||||||||||||||||
Conversion of Series C preferred stock to common stock | (155 | ) | 4 | 151 | — | — | — | — | |||||||||||||||||||
Common stock issued for: | |||||||||||||||||||||||||||
Acquisitions | — | 811 | 37,912 | — | — | — | 38,723 | ||||||||||||||||||||
Exercise of stock options and warrants | — | 564 | 8,141 | (130 | ) | — | — | 8,575 | |||||||||||||||||||
Restricted stock awards | — | 99 | 382 | (285 | ) | — | — | 196 | |||||||||||||||||||
Employee stock purchase plan | — | 43 | 1,997 | — | — | — | 2,040 | ||||||||||||||||||||
Director compensation plan | — | 20 | 1,210 | — | — | — | 1,230 | ||||||||||||||||||||
Balance at September 30, 2015 | $ | 251,312 | $ | 48,422 | $ | 1,187,407 | $ | (3,964 | ) | $ | 901,652 | $ | (49,093 | ) | $ | 2,335,736 | |||||||||||
Balance at January 1, 2016 | $ | 251,287 | $ | 48,469 | $ | 1,190,988 | $ | (3,973 | ) | $ | 928,211 | $ | (62,708 | ) | $ | 2,352,274 | |||||||||||
Net income | — | — | — | — | 152,267 | — | 152,267 | ||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | — | 30,129 | 30,129 | ||||||||||||||||||||
Cash dividends declared on common stock | — | — | — | — | (17,846 | ) | — | (17,846 | ) | ||||||||||||||||||
Dividends on preferred stock | — | — | — | — | (10,884 | ) | — | (10,884 | ) | ||||||||||||||||||
Stock-based compensation | — | — | 6,778 | — | — | — | 6,778 | ||||||||||||||||||||
Conversion of Series C preferred stock to common stock | (30 | ) | 1 | 29 | — | — | — | — | |||||||||||||||||||
Common stock issued for: | |||||||||||||||||||||||||||
New issuance, net of costs | — | 3,000 | 149,823 | — | — | — | 152,823 | ||||||||||||||||||||
Exercise of stock options and warrants | — | 185 | 5,965 | (377 | ) | — | — | 5,773 | |||||||||||||||||||
Restricted stock awards | — | 88 | 121 | (172 | ) | — | — | 37 | |||||||||||||||||||
Employee stock purchase plan | — | 43 | 1,890 | — | — | — | 1,933 | ||||||||||||||||||||
Director compensation plan | — | 25 | 1,165 | — | — | — | 1,190 | ||||||||||||||||||||
Balance at September 30, 2016 | $ | 251,257 | $ | 51,811 | $ | 1,356,759 | $ | (4,522 | ) | $ | 1,051,748 | $ | (32,579 | ) | $ | 2,674,474 |
Nine Months Ended | |||||||
(In thousands) | September 30, 2016 | September 30, 2015 | |||||
Operating Activities: | |||||||
Net income | $ | 152,267 | $ | 121,238 | |||
Adjustments to reconcile net income to net cash used for operating activities | |||||||
Provision for credit losses | 26,734 | 23,883 | |||||
Depreciation, amortization and accretion, net | 38,798 | 28,017 | |||||
Stock-based compensation expense | 6,778 | 7,817 | |||||
Excess tax benefits from stock-based compensation arrangements | (399 | ) | (660 | ) | |||
Net amortization of premium on securities | 3,728 | 2,576 | |||||
Accretion of discount on loans | (23,416 | ) | (25,061 | ) | |||
Mortgage servicing rights fair value change, net | (4,810 | ) | 641 | ||||
Originations and purchases of mortgage loans held-for-sale | (3,208,468 | ) | (3,094,901 | ) | |||
Proceeds from sales of mortgage loans held-for-sale | 3,111,318 | 3,182,623 | |||||
Bank owned life insurance ("BOLI"), net of claims | (2,613 | ) | (1,683 | ) | |||
Increase in trading securities, net | (644 | ) | (2,106 | ) | |||
Net decrease (increase) in brokerage customer receivables | 2,120 | (4,072 | ) | ||||
Gains on mortgage loans sold | (74,446 | ) | (83,437 | ) | |||
Gains on investment securities, net | (6,070 | ) | (402 | ) | |||
Gains on early extinguishment of debt | (4,305 | ) | — | ||||
(Gains) losses on sales of premises and equipment, net | (89 | ) | 512 | ||||
Net losses (gains) on sales and fair value adjustments of other real estate owned | 935 | (585 | ) | ||||
Increase in accrued interest receivable and other assets, net | (131,504 | ) | (113,805 | ) | |||
Increase (decrease) in accrued interest payable and other liabilities, net | 31,082 | (28,717 | ) | ||||
Net Cash (Used for) Provided by Operating Activities | (83,004 | ) | 11,878 | ||||
Investing Activities: | |||||||
Proceeds from maturities of available-for-sale securities | 1,128,428 | 397,832 | |||||
Proceeds from maturities of held-to-maturity securities | 502 | — | |||||
Proceeds from sales and calls of available-for-sale securities | 2,186,662 | 1,216,860 | |||||
Proceeds from calls of held-to-maturity securities | 423,866 | — | |||||
Purchases of available-for-sale securities | (3,169,020 | ) | (1,584,282 | ) | |||
Purchases of held-to-maturity securities | (472,803 | ) | — | ||||
(Purchase) redemption of Federal Home Loan Bank and Federal Reserve Bank stock, net | (28,049 | ) | 1,274 | ||||
Net cash paid in business combinations | (578,315 | ) | (15,428 | ) | |||
Proceeds from sales of other real estate owned | 29,223 | 34,936 | |||||
Proceeds received from the FDIC related to reimbursements on covered assets | 2,124 | 1,697 | |||||
Net (increase) decrease in interest bearing deposits with banks | (204,085 | ) | 438,072 | ||||
Net increase in loans | (1,303,218 | ) | (1,286,736 | ) | |||
Redemption of BOLI | 659 | 2,701 | |||||
Purchases of premises and equipment, net | (28,276 | ) | (29,375 | ) | |||
Net Cash Used for Investing Activities | (2,012,302 | ) | (822,449 | ) | |||
Financing Activities: | |||||||
Increase in deposit accounts | 2,408,216 | 970,090 | |||||
(Decrease) increase in other borrowings, net | (24,545 | ) | 38,775 | ||||
Decrease in Federal Home Loan Bank advances, net | (440,257 | ) | (293,360 | ) | |||
Proceeds from the issuance of common stock, net | 152,823 | — | |||||
Proceeds from the issuance of preferred stock, net | — | 120,842 | |||||
Redemption of junior subordinated debentures, net | (10,695 | ) | — | ||||
Excess tax benefits from stock-based compensation arrangements | 399 | 660 | |||||
Issuance of common shares resulting from the exercise of stock options and the employee stock purchase plan | 9,796 | 14,413 | |||||
Common stock repurchases | (549 | ) | (415 | ) | |||
Dividends paid | (28,730 | ) | (20,486 | ) | |||
Net Cash Provided by Financing Activities | 2,066,458 | 830,519 | |||||
Net (Decrease) Increase in Cash and Cash Equivalents | (28,848 | ) | 19,948 | ||||
Cash and Cash Equivalents at Beginning of Period | 275,795 | 230,707 | |||||
Cash and Cash Equivalents at End of Period | $ | 246,947 | $ | 250,655 |
Three Months Ended | Nine Months Ended | ||||||||||||||
(Dollars in thousands) | September 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | |||||||||||
Balance at beginning of period | $ | (11,729 | ) | $ | 3,429 | $ | (6,100 | ) | $ | 11,846 | |||||
Additions from acquisitions | — | — | — | — | |||||||||||
Additions from reimbursable expenses | 21 | 1,039 | 752 | 3,548 | |||||||||||
Accretion (amortization) | 4 | (718 | ) | (189 | ) | (3,184 | ) | ||||||||
Changes in expected reimbursements from the FDIC for changes in expected credit losses | (4,537 | ) | (5,236 | ) | (10,284 | ) | (13,546 | ) | |||||||
Payments received from the FDIC | (1,704 | ) | (1,547 | ) | (2,124 | ) | (1,697 | ) | |||||||
Balance at end of period | $ | (17,945 | ) | $ | (3,033 | ) | $ | (17,945 | ) | $ | (3,033 | ) |
September 30, 2016 | |||||||||||||||
(Dollars in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||
Available-for-sale securities | |||||||||||||||
U.S. Treasury | $ | 30,017 | $ | 19 | $ | — | $ | 30,036 | |||||||
U.S. Government agencies | 93,561 | 163 | (41 | ) | 93,683 | ||||||||||
Municipal | 106,033 | 3,395 | (147 | ) | 109,281 | ||||||||||
Corporate notes: | |||||||||||||||
Financial issuers | 65,215 | 299 | (1,311 | ) | 64,203 | ||||||||||
Other | 1,000 | — | — | 1,000 | |||||||||||
Mortgage-backed: (1) | |||||||||||||||
Mortgage-backed securities | 1,257,070 | 7,958 | (54 | ) | 1,264,974 | ||||||||||
Collateralized mortgage obligations | 35,935 | 304 | (102 | ) | 36,137 | ||||||||||
Equity securities | 48,568 | 2,998 | (784 | ) | 50,782 | ||||||||||
Total available-for-sale securities | $ | 1,637,399 | $ | 15,136 | $ | (2,439 | ) | $ | 1,650,096 | ||||||
Held-to-maturity securities | |||||||||||||||
U.S. Government agencies | $ | 729,417 | $ | 7,577 | $ | (2,879 | ) | $ | 734,115 | ||||||
Municipal | 203,350 | 5,515 | (314 | ) | 208,551 | ||||||||||
Total held-to-maturity securities | $ | 932,767 | $ | 13,092 | $ | (3,193 | ) | $ | 942,666 |
December 31, 2015 | |||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Available-for-sale securities | |||||||||||||||
U.S. Treasury | $ | 312,282 | $ | — | $ | (5,553 | ) | $ | 306,729 | ||||||
U.S. Government agencies | 70,313 | 198 | (275 | ) | 70,236 | ||||||||||
Municipal | 105,702 | 3,249 | (356 | ) | 108,595 | ||||||||||
Corporate notes: | |||||||||||||||
Financial issuers | 80,014 | 1,510 | (1,481 | ) | 80,043 | ||||||||||
Other | 1,500 | 4 | (2 | ) | 1,502 | ||||||||||
Mortgage-backed: (1) | |||||||||||||||
Mortgage-backed securities | 1,069,680 | 3,834 | (21,004 | ) | 1,052,510 | ||||||||||
Collateralized mortgage obligations | 40,421 | 172 | (506 | ) | 40,087 | ||||||||||
Equity securities | 51,380 | 5,799 | (493 | ) | 56,686 | ||||||||||
Total available-for-sale securities | $ | 1,731,292 | $ | 14,766 | $ | (29,670 | ) | $ | 1,716,388 | ||||||
Held-to-maturity securities | |||||||||||||||
U.S. Government agencies | $ | 687,302 | $ | 4 | $ | (7,144 | ) | $ | 680,162 | ||||||
Municipal | 197,524 | 867 | (442 | ) | 197,949 | ||||||||||
Total held-to-maturity securities | $ | 884,826 | $ | 871 | $ | (7,586 | ) | $ | 878,111 |
September 30, 2015 | |||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Available-for-sale securities | |||||||||||||||
U.S. Treasury | $ | 288,185 | $ | 101 | $ | (2,364 | ) | $ | 285,922 | ||||||
U.S. Government agencies | 657,297 | 2,726 | (15,000 | ) | 645,023 | ||||||||||
Municipal | 294,073 | 5,354 | (2,085 | ) | 297,342 | ||||||||||
Corporate notes: | |||||||||||||||
Financial issuers | 114,976 | 1,656 | (1,216 | ) | 115,416 | ||||||||||
Other | 1,525 | 6 | (2 | ) | 1,529 | ||||||||||
Mortgage-backed: (1) | |||||||||||||||
Mortgage-backed securities | 778,240 | 4,974 | (10,913 | ) | 772,301 | ||||||||||
Collateralized mortgage obligations | 42,724 | 343 | (323 | ) | 42,744 | ||||||||||
Equity securities | 49,356 | 4,993 | (345 | ) | 54,004 | ||||||||||
Total available-for-sale securities | $ | 2,226,376 | $ | 20,153 | $ | (32,248 | ) | $ | 2,214,281 | ||||||
Held-to-maturity securities | |||||||||||||||
U.S. Government agencies | $ | — | $ | — | $ | — | $ | — | |||||||
Municipal | — | — | — | — | |||||||||||
Total held-to-maturity securities | $ | — | $ | — | $ | — | $ | — |
(1) | Consisting entirely of residential mortgage-backed securities, none of which are subprime. |
Continuous unrealized losses existing for less than 12 months | Continuous unrealized losses existing for greater than 12 months | Total | |||||||||||||||||||||
(Dollars in thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||||
U.S. Treasury | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
U.S. Government agencies | 35,173 | (41 | ) | — | — | 35,173 | (41 | ) | |||||||||||||||
Municipal | 13,062 | (45 | ) | 7,766 | (102 | ) | 20,828 | (147 | ) | ||||||||||||||
Corporate notes: | |||||||||||||||||||||||
Financial issuers | 10,000 | (1 | ) | 34,650 | (1,310 | ) | 44,650 | (1,311 | ) | ||||||||||||||
Other | — | — | — | — | — | — | |||||||||||||||||
Mortgage-backed: | |||||||||||||||||||||||
Mortgage-backed securities | 1,017 | (22 | ) | 4,019 | (32 | ) | 5,036 | (54 | ) | ||||||||||||||
Collateralized mortgage obligations | 1,255 | (2 | ) | 7,499 | (100 | ) | 8,754 | (102 | ) | ||||||||||||||
Equity securities | 16,550 | (481 | ) | 8,787 | (303 | ) | 25,337 | (784 | ) | ||||||||||||||
Total available-for-sale securities | $ | 77,057 | $ | (592 | ) | $ | 62,721 | $ | (1,847 | ) | $ | 139,778 | $ | (2,439 | ) | ||||||||
Held-to-maturity securities | |||||||||||||||||||||||
U.S. Government agencies | $ | 240,400 | $ | (2,879 | ) | $ | — | $ | — | $ | 240,400 | $ | (2,879 | ) | |||||||||
Municipal | 11,925 | (204 | ) | 9,239 | (110 | ) | 21,164 | (314 | ) | ||||||||||||||
Total held-to-maturity securities | $ | 252,325 | $ | (3,083 | ) | $ | 9,239 | $ | (110 | ) | $ | 261,564 | $ | (3,193 | ) |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
(Dollars in thousands) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Realized gains | $ | 3,429 | $ | 87 | $ | 7,466 | $ | 654 | |||||||
Realized losses | (124 | ) | (185 | ) | (1,396 | ) | (252 | ) | |||||||
Net realized gains (losses) | $ | 3,305 | $ | (98 | ) | $ | 6,070 | $ | 402 | ||||||
Other than temporary impairment charges | — | — | — | — | |||||||||||
Gains (losses) on investment securities, net | $ | 3,305 | $ | (98 | ) | $ | 6,070 | $ | 402 | ||||||
Proceeds from sales and calls of available-for-sale securities | $ | 1,114,666 | $ | 82,827 | $ | 2,186,662 | $ | 1,216,860 | |||||||
Proceeds from calls of held-to-maturity securities | 141,885 | — | 423,866 | — |
September 30, 2016 | December 31, 2015 | September 30, 2015 | |||||||||||||||||||||
(Dollars in thousands) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||||
Due in one year or less | $ | 115,227 | $ | 115,487 | $ | 160,856 | $ | 160,756 | $ | 164,374 | $ | 164,429 | |||||||||||
Due in one to five years | 141,364 | 141,368 | 166,550 | 166,468 | 186,199 | 186,592 | |||||||||||||||||
Due in five to ten years | 28,696 | 31,319 | 228,652 | 225,699 | 343,468 | 342,271 | |||||||||||||||||
Due after ten years | 10,539 | 10,029 | 13,753 | 14,182 | 662,015 | 651,940 | |||||||||||||||||
Mortgage-backed | 1,293,005 | 1,301,111 | 1,110,101 | 1,092,597 | 820,964 | 815,045 | |||||||||||||||||
Equity securities | 48,568 | 50,782 | 51,380 | 56,686 | 49,356 | 54,004 | |||||||||||||||||
Total available-for-sale securities | $ | 1,637,399 | $ | 1,650,096 | $ | 1,731,292 | $ | 1,716,388 | $ | 2,226,376 | $ | 2,214,281 | |||||||||||
Held-to-maturity securities | |||||||||||||||||||||||
Due in one year or less | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
Due in one to five years | 25,927 | 26,023 | 19,208 | 19,156 | — | — | |||||||||||||||||
Due in five to ten years | 64,835 | 65,842 | 96,454 | 96,091 | — | — | |||||||||||||||||
Due after ten years | 842,005 | 850,801 | 769,164 | 762,864 | — | — | |||||||||||||||||
Total held-to-maturity securities | $ | 932,767 | $ | 942,666 | $ | 884,826 | $ | 878,111 | $ | — | $ | — |
September 30, | December 31, | September 30, | |||||||||
(Dollars in thousands) | 2016 | 2015 | 2015 | ||||||||
Balance: | |||||||||||
Commercial | $ | 5,951,544 | $ | 4,713,909 | $ | 4,400,185 | |||||
Commercial real estate | 5,908,684 | 5,529,289 | 5,307,566 | ||||||||
Home equity | 742,868 | 784,675 | 797,465 | ||||||||
Residential real estate | 663,598 | 607,451 | 571,743 | ||||||||
Premium finance receivables—commercial | 2,430,233 | 2,374,921 | 2,407,075 | ||||||||
Premium finance receivables—life insurance | 3,283,359 | 2,961,496 | 2,700,275 | ||||||||
Consumer and other | 120,975 | 146,376 | 131,902 | ||||||||
Total loans, net of unearned income, excluding covered loans | $ | 19,101,261 | $ | 17,118,117 | $ | 16,316,211 | |||||
Covered loans | 95,940 | 148,673 | 168,609 | ||||||||
Total loans | $ | 19,197,201 | $ | 17,266,790 | $ | 16,484,820 | |||||
Mix: | |||||||||||
Commercial | 31 | % | 27 | % | 27 | % | |||||
Commercial real estate | 31 | 32 | 32 | ||||||||
Home equity | 4 | 5 | 5 | ||||||||
Residential real estate | 3 | 3 | 3 | ||||||||
Premium finance receivables—commercial | 13 | 14 | 15 | ||||||||
Premium finance receivables—life insurance | 17 | 17 | 16 | ||||||||
Consumer and other | 1 | 1 | 1 | ||||||||
Total loans, net of unearned income, excluding covered loans | 100 | % | 99 | % | 99 | % | |||||
Covered loans | — | 1 | 1 | ||||||||
Total loans | 100 | % | 100 | % | 100 | % |
September 30, 2016 | December 31, 2015 | |||||||||||||||
(Dollars in thousands) | Unpaid Principal Balance | Carrying Value | Unpaid Principal Balance | Carrying Value | ||||||||||||
Bank acquisitions | $ | 278,862 | $ | 233,340 | $ | 326,470 | $ | 271,260 | ||||||||
Life insurance premium finance loans acquisition | 266,618 | 262,887 | 372,738 | 368,292 |
(Dollars in thousands) | Foundations Bank | ||
Contractually required payments including interest | $ | 20,091 | |
Less: Nonaccretable difference | 4,009 | ||
Cash flows expected to be collected (1) | $ | 16,082 | |
Less: Accretable yield | 1,082 | ||
Fair value of PCI loans acquired | $ | 15,000 |
Three months ended | Nine Months Ended | ||||||||||||||
(Dollars in thousands) | September 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | |||||||||||
Accretable yield, beginning balance | $ | 55,630 | $ | 63,643 | $ | 63,902 | $ | 79,102 | |||||||
Acquisitions | — | 10,407 | 1,082 | 11,305 | |||||||||||
Accretable yield amortized to interest income | (6,449 | ) | (5,939 | ) | (17,105 | ) | (18,359 | ) | |||||||
Accretable yield amortized to indemnification asset/liability (1) | (1,744 | ) | (3,280 | ) | (5,539 | ) | (10,945 | ) | |||||||
Reclassification from non-accretable difference (2) | 5,370 | 2,298 | 12,099 | 5,154 | |||||||||||
Increases (decreases) in interest cash flows due to payments and changes in interest rates | 170 | (610 | ) | (1,462 | ) | 262 | |||||||||
Accretable yield, ending balance (3) | $ | 52,977 | $ | 66,519 | $ | 52,977 | $ | 66,519 |
(1) | Represents the portion of the current period accreted yield, resulting from lower expected losses, applied to reduce the loss share indemnification asset or increase the loss share indemnification liability. |
(2) | Reclassification is the result of subsequent increases in expected principal cash flows. |
(3) | As of September 30, 2016, the Company estimates that the remaining accretable yield balance to be amortized to the indemnification asset or liability for the bank acquisitions is $1.5 million. The remainder of the accretable yield related to bank acquisitions is expected to be amortized to interest income. |
As of September 30, 2016 | 90+ days and still accruing | 60-89 days past due | 30-59 days past due | ||||||||||||||||||||
(Dollars in thousands) | Nonaccrual | Current | Total Loans | ||||||||||||||||||||
Loan Balances: | |||||||||||||||||||||||
Commercial | |||||||||||||||||||||||
Commercial, industrial and other | $ | 15,809 | $ | — | $ | 7,324 | $ | 8,987 | $ | 3,573,396 | $ | 3,605,516 | |||||||||||
Franchise | — | — | 458 | 1,626 | 872,661 | 874,745 | |||||||||||||||||
Mortgage warehouse lines of credit | — | — | — | — | 309,632 | 309,632 | |||||||||||||||||
Asset-based lending | 234 | — | 3,772 | 3,741 | 837,972 | 845,719 | |||||||||||||||||
Leases | 375 | — | 239 | — | 299,339 | 299,953 | |||||||||||||||||
PCI - commercial (1) | — | 1,783 | — | 1,036 | 13,160 | 15,979 | |||||||||||||||||
Total commercial | 16,418 | 1,783 | 11,793 | 15,390 | 5,906,160 | 5,951,544 | |||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||
Construction | 400 | — | — | 3,775 | 447,302 | 451,477 | |||||||||||||||||
Land | 1,208 | — | 787 | 300 | 105,406 | 107,701 | |||||||||||||||||
Office | 3,609 | — | 6,457 | 8,062 | 865,954 | 884,082 | |||||||||||||||||
Industrial | 9,967 | — | 940 | 2,961 | 753,636 | 767,504 | |||||||||||||||||
Retail | 909 | — | 1,340 | 8,723 | 884,369 | 895,341 | |||||||||||||||||
Multi-family | 90 | — | 3,051 | 2,169 | 789,645 | 794,955 | |||||||||||||||||
Mixed use and other | 6,442 | — | 2,157 | 5,184 | 1,837,724 | 1,851,507 | |||||||||||||||||
PCI - commercial real estate (1) | — | 21,433 | 1,509 | 4,066 | 129,109 | 156,117 | |||||||||||||||||
Total commercial real estate | 22,625 | 21,433 | 16,241 | 35,240 | 5,813,145 | 5,908,684 | |||||||||||||||||
Home equity | 9,309 | — | 1,728 | 3,842 | 727,989 | 742,868 | |||||||||||||||||
Residential real estate, including PCI | 12,205 | 1,496 | 2,232 | 1,088 | 646,577 | 663,598 | |||||||||||||||||
Premium finance receivables | |||||||||||||||||||||||
Commercial insurance loans | 14,214 | 7,754 | 6,968 | 10,291 | 2,391,006 | 2,430,233 | |||||||||||||||||
Life insurance loans | — | — | 9,960 | 3,717 | 3,006,795 | 3,020,472 | |||||||||||||||||
PCI - life insurance loans (1) | — | — | — | — | 262,887 | 262,887 | |||||||||||||||||
Consumer and other, including PCI | 543 | 124 | 204 | 871 | 119,233 | 120,975 | |||||||||||||||||
Total loans, net of unearned income, excluding covered loans | $ | 75,314 | $ | 32,590 | $ | 49,126 | $ | 70,439 | $ | 18,873,792 | $ | 19,101,261 | |||||||||||
Covered loans | 2,331 | 4,806 | 1,545 | 2,456 | 84,802 | 95,940 | |||||||||||||||||
Total loans, net of unearned income | $ | 77,645 | $ | 37,396 | $ | 50,671 | $ | 72,895 | $ | 18,958,594 | $ | 19,197,201 |
(1) | PCI loans represent loans acquired with evidence of credit quality deterioration since origination, in accordance with ASC 310-30. Loan agings are based upon contractually required payments. |
As of December 31, 2015 | 90+ days and still accruing | 60-89 days past due | 30-59 days past due | ||||||||||||||||||||
(Dollars in thousands) | Nonaccrual | Current | Total Loans | ||||||||||||||||||||
Loan Balances: | |||||||||||||||||||||||
Commercial | |||||||||||||||||||||||
Commercial, industrial and other | $ | 12,704 | $ | 6 | $ | 6,749 | $ | 12,930 | $ | 3,226,139 | $ | 3,258,528 | |||||||||||
Franchise | — | — | — | — | 245,228 | 245,228 | |||||||||||||||||
Mortgage warehouse lines of credit | — | — | — | — | 222,806 | 222,806 | |||||||||||||||||
Asset-based lending | 8 | — | 3,864 | 1,844 | 736,968 | 742,684 | |||||||||||||||||
Leases | — | 535 | 748 | 4,192 | 220,599 | 226,074 | |||||||||||||||||
PCI - commercial (1) | — | 892 | — | 2,510 | 15,187 | 18,589 | |||||||||||||||||
Total commercial | 12,712 | 1,433 | 11,361 | 21,476 | 4,666,927 | 4,713,909 | |||||||||||||||||
Commercial real estate | |||||||||||||||||||||||
Construction | 306 | — | 1,371 | 1,645 | 355,338 | 358,660 | |||||||||||||||||
Land | 1,751 | — | — | 120 | 76,546 | 78,417 | |||||||||||||||||
Office | 4,619 | — | 764 | 3,817 | 853,801 | 863,001 | |||||||||||||||||
Industrial | 9,564 | — | 1,868 | 1,009 | 715,207 | 727,648 | |||||||||||||||||
Retail | 1,760 | — | 442 | 2,310 | 863,887 | 868,399 | |||||||||||||||||
Multi-family | 1,954 | — | 597 | 6,568 | 733,230 | 742,349 | |||||||||||||||||
Mixed use and other | 6,691 | — | 6,723 | 7,215 | 1,712,187 | 1,732,816 | |||||||||||||||||
PCI - commercial real estate (1) | — | 22,111 | 4,662 | 16,559 | 114,667 | 157,999 | |||||||||||||||||
Total commercial real estate | 26,645 | 22,111 | 16,427 | 39,243 | 5,424,863 | 5,529,289 | |||||||||||||||||
Home equity | 6,848 | — | 1,889 | 5,517 | 770,421 | 784,675 | |||||||||||||||||
Residential real estate, including PCI | 12,043 | 488 | 2,166 | 3,903 | 588,851 | 607,451 | |||||||||||||||||
Premium finance receivables | |||||||||||||||||||||||
Commercial insurance loans | 14,561 | 10,294 | 6,624 | 21,656 | 2,321,786 | 2,374,921 | |||||||||||||||||
Life insurance loans | — | — | 3,432 | 11,140 | 2,578,632 | 2,593,204 | |||||||||||||||||
PCI - life insurance loans (1) | — | — | — | — | 368,292 | 368,292 | |||||||||||||||||
Consumer and other, including PCI | 263 | 211 | 204 | 1,187 | 144,511 | 146,376 | |||||||||||||||||
Total loans, net of unearned income, excluding covered loans | $ | 73,072 | $ | 34,537 | $ | 42,103 | $ | 104,122 | $ | 16,864,283 | $ | 17,118,117 | |||||||||||
Covered loans | 5,878 | 7,335 | 703 | 5,774 | 128,983 | 148,673 | |||||||||||||||||
Total loans, net of unearned income | $ | 78,950 | $ | 41,872 | $ | 42,806 | $ | 109,896 | $ | 16,993,266 | $ | 17,266,790 |
As of September 30, 2015 | 90+ days and still accruing | 60-89 days past due | 30-59 days past due | ||||||||||||||||||||
(Dollars in thousands) | Nonaccrual | Current | Total Loans | ||||||||||||||||||||
Loan Balances: | |||||||||||||||||||||||
Commercial | |||||||||||||||||||||||
Commercial, industrial and other | $ | 12,006 | $ | — | $ | 2,775 | $ | 9,709 | $ | 2,985,985 | $ | 3,010,475 | |||||||||||
Franchise | — | — | 80 | 376 | 221,545 | 222,001 | |||||||||||||||||
Mortgage warehouse lines of credit | — | — | — | — | 136,614 | 136,614 | |||||||||||||||||
Asset-based lending | 12 | — | 1,313 | 247 | 800,798 | 802,370 | |||||||||||||||||
Leases | — | — | — | 89 | 205,697 | 205,786 | |||||||||||||||||
PCI - commercial (1) | — | 217 | — | 39 | 22,683 | 22,939 | |||||||||||||||||
Total commercial | 12,018 | 217 | 4,168 | 10,460 | 4,373,322 | 4,400,185 | |||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||
Construction | 31 | — | — | 3,535 | 343,668 | 347,234 | |||||||||||||||||
Land | 1,756 | — | — | 2,207 | 75,113 | 79,076 | |||||||||||||||||
Office | 4,045 | — | 10,861 | 2,362 | 773,043 | 790,311 | |||||||||||||||||
Industrial | 11,637 | — | 786 | 897 | 622,804 | 636,124 | |||||||||||||||||
Retail | 2,022 | — | 1,536 | 821 | 781,463 | 785,842 | |||||||||||||||||
Multi-family | 1,525 | — | 512 | 744 | 684,878 | 687,659 | |||||||||||||||||
Mixed use and other | 7,601 | — | 2,340 | 12,871 | 1,797,516 | 1,820,328 | |||||||||||||||||
PCI - commercial real estate (1) | — | 13,547 | 299 | 583 | 146,563 | 160,992 | |||||||||||||||||
Total commercial real estate | 28,617 | 13,547 | 16,334 | 24,020 | 5,225,048 | 5,307,566 | |||||||||||||||||
Home equity | 8,365 | — | 811 | 4,124 | 784,165 | 797,465 | |||||||||||||||||
Residential real estate, including PCI | 14,557 | 424 | 1,340 | 1,606 | 553,816 | 571,743 | |||||||||||||||||
Premium finance receivables | |||||||||||||||||||||||
Commercial insurance loans | 13,751 | 8,231 | 6,664 | 13,659 | 2,364,770 | 2,407,075 | |||||||||||||||||
Life insurance loans | — | — | 9,656 | 2,627 | 2,314,406 | 2,326,689 | |||||||||||||||||
PCI - life insurance loans (1) | — | — | — | — | 373,586 | 373,586 | |||||||||||||||||
Consumer and other, including PCI | 297 | 140 | 56 | 935 | 130,474 | 131,902 | |||||||||||||||||
Total loans, net of unearned income, excluding covered loans | $ | 77,605 | $ | 22,559 | $ | 39,029 | $ | 57,431 | $ | 16,119,587 | $ | 16,316,211 | |||||||||||
Covered loans | 6,540 | 7,626 | 1,392 | 802 | 152,249 | 168,609 | |||||||||||||||||
Total loans, net of unearned income | $ | 84,145 | $ | 30,185 | $ | 40,421 | $ | 58,233 | $ | 16,271,836 | $ | 16,484,820 |
(1) | PCI loans represent loans acquired with evidence of credit quality deterioration since origination, in accordance with ASC 310-30. Loan agings are based upon contractually required payments. |
Performing | Non-performing | Total | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | September 30, 2016 | December 31, 2015 | September 30, 2015 | September 30, 2016 | December 31, 2015 | September 30, 2015 | September 30, 2016 | December 31, 2015 | September 30, 2015 | ||||||||||||||||||||||||||
Loan Balances: | |||||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||||
Commercial, industrial and other | $ | 3,589,707 | $ | 3,245,818 | $ | 2,998,469 | $ | 15,809 | $ | 12,710 | $ | 12,006 | $ | 3,605,516 | $ | 3,258,528 | $ | 3,010,475 | |||||||||||||||||
Franchise | 874,745 | 245,228 | 222,001 | — | — | — | 874,745 | 245,228 | 222,001 | ||||||||||||||||||||||||||
Mortgage warehouse lines of credit | 309,632 | 222,806 | 136,614 | — | — | — | 309,632 | 222,806 | 136,614 | ||||||||||||||||||||||||||
Asset-based lending | 845,485 | 742,676 | 802,358 | 234 | 8 | 12 | 845,719 | 742,684 | 802,370 | ||||||||||||||||||||||||||
Leases | 299,578 | 225,539 | 205,786 | 375 | 535 | — | 299,953 | 226,074 | 205,786 | ||||||||||||||||||||||||||
PCI - commercial (1) | 15,979 | 18,589 | 22,939 | — | — | — | 15,979 | 18,589 | 22,939 | ||||||||||||||||||||||||||
Total commercial | 5,935,126 | 4,700,656 | 4,388,167 | 16,418 | 13,253 | 12,018 | 5,951,544 | 4,713,909 | 4,400,185 | ||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||||||||
Construction | 451,077 | 358,354 | 347,203 | 400 | 306 | 31 | 451,477 | 358,660 | 347,234 | ||||||||||||||||||||||||||
Land | 106,493 | 76,666 | 77,320 | 1,208 | 1,751 | 1,756 | 107,701 | 78,417 | 79,076 | ||||||||||||||||||||||||||
Office | 880,473 | 858,382 | 786,266 | 3,609 | 4,619 | 4,045 | 884,082 | 863,001 | 790,311 | ||||||||||||||||||||||||||
Industrial | 757,537 | 718,084 | 624,487 | 9,967 | 9,564 | 11,637 | 767,504 | 727,648 | 636,124 | ||||||||||||||||||||||||||
Retail | 894,432 | 866,639 | 783,820 | 909 | 1,760 | 2,022 | 895,341 | 868,399 | 785,842 | ||||||||||||||||||||||||||
Multi-family | 794,865 | 740,395 | 686,134 | 90 | 1,954 | 1,525 | 794,955 | 742,349 | 687,659 | ||||||||||||||||||||||||||
Mixed use and other | 1,845,065 | 1,726,125 | 1,812,727 | 6,442 | 6,691 | 7,601 | 1,851,507 | 1,732,816 | 1,820,328 | ||||||||||||||||||||||||||
PCI - commercial real estate(1) | 156,117 | 157,999 | 160,992 | — | — | — | 156,117 | 157,999 | 160,992 | ||||||||||||||||||||||||||
Total commercial real estate | 5,886,059 | 5,502,644 | 5,278,949 | 22,625 | 26,645 | 28,617 | 5,908,684 | 5,529,289 | 5,307,566 | ||||||||||||||||||||||||||
Home equity | 733,559 | 777,827 | 789,100 | 9,309 | 6,848 | 8,365 | 742,868 | 784,675 | 797,465 | ||||||||||||||||||||||||||
Residential real estate, including PCI | 651,393 | 595,408 | 557,186 | 12,205 | 12,043 | 14,557 | 663,598 | 607,451 | 571,743 | ||||||||||||||||||||||||||
Premium finance receivables | |||||||||||||||||||||||||||||||||||
Commercial insurance loans | 2,408,265 | 2,350,066 | 2,385,093 | 21,968 | 24,855 | 21,982 | 2,430,233 | 2,374,921 | 2,407,075 | ||||||||||||||||||||||||||
Life insurance loans | 3,020,472 | 2,593,204 | 2,326,689 | — | — | — | 3,020,472 | 2,593,204 | 2,326,689 | ||||||||||||||||||||||||||
PCI - life insurance loans (1) | 262,887 | 368,292 | 373,586 | — | — | — | 262,887 | 368,292 | 373,586 | ||||||||||||||||||||||||||
Consumer and other, including PCI | 120,372 | 145,963 | 131,465 | 603 | 413 | 437 | 120,975 | 146,376 | 131,902 | ||||||||||||||||||||||||||
Total loans, net of unearned income, excluding covered loans | $ | 19,018,133 | $ | 17,034,060 | $ | 16,230,235 | $ | 83,128 | $ | 84,057 | $ | 85,976 | $ | 19,101,261 | $ | 17,118,117 | $ | 16,316,211 |
(1) | PCI loans represent loans acquired with evidence of credit quality deterioration since origination, in accordance with ASC 310-30. See Note 6 - Loans for further discussion of these purchased loans. |
Three months ended September 30, 2016 | Commercial Real Estate | Home Equity | Residential Real Estate | Premium Finance Receivable | Consumer and Other | Total, Excluding Covered Loans | |||||||||||||||||||||
(Dollars in thousands) | Commercial | ||||||||||||||||||||||||||
Allowance for credit losses | |||||||||||||||||||||||||||
Allowance for loan losses at beginning of period | $ | 41,654 | $ | 46,824 | $ | 11,383 | $ | 5,405 | $ | 7,814 | $ | 1,276 | $ | 114,356 | |||||||||||||
Other adjustments | (35 | ) | (57 | ) | — | (10 | ) | (10 | ) | — | (112 | ) | |||||||||||||||
Reclassification from allowance for unfunded lending-related commitments | (500 | ) | (79 | ) | — | — | — | — | (579 | ) | |||||||||||||||||
Charge-offs | (3,469 | ) | (382 | ) | (574 | ) | (134 | ) | (1,959 | ) | (389 | ) | (6,907 | ) | |||||||||||||
Recoveries | 176 | 364 | 65 | 61 | 456 | 72 | 1,194 | ||||||||||||||||||||
Provision for credit losses | 5,212 | 1,678 | 810 | 781 | 974 | 286 | 9,741 | ||||||||||||||||||||
Allowance for loan losses at period end | $ | 43,038 | $ | 48,348 | $ | 11,684 | $ | 6,103 | $ | 7,275 | $ | 1,245 | $ | 117,693 | |||||||||||||
Allowance for unfunded lending-related commitments at period end | $ | 500 | $ | 1,148 | $ | — | $ | — | $ | — | $ | — | $ | 1,648 | |||||||||||||
Allowance for credit losses at period end | $ | 43,538 | $ | 49,496 | $ | 11,684 | $ | 6,103 | $ | 7,275 | $ | 1,245 | $ | 119,341 | |||||||||||||
Individually evaluated for impairment | $ | 2,554 | $ | 2,491 | $ | 964 | $ | 1,166 | $ | — | $ | 192 | $ | 7,367 | |||||||||||||
Collectively evaluated for impairment | 40,252 | 46,983 | 10,720 | 4,867 | 7,275 | 1,053 | 111,150 | ||||||||||||||||||||
Loans acquired with deteriorated credit quality | 732 | 22 | — | 70 | — | — | 824 | ||||||||||||||||||||
Loans at period end | |||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 19,133 | $ | 45,290 | $ | 9,309 | $ | 17,040 | $ | — | $ | 602 | $ | 91,374 | |||||||||||||
Collectively evaluated for impairment | 5,916,432 | 5,707,277 | 733,559 | 642,633 | 5,450,705 | 119,162 | 18,569,768 | ||||||||||||||||||||
Loans acquired with deteriorated credit quality | 15,979 | 156,117 | — | 3,925 | 262,887 | 1,211 | 440,119 |
Three months ended September 30, 2015 | Commercial | Commercial Real Estate | Home Equity | Residential Real Estate | Premium Finance Receivable | Consumer and Other | Total, Excluding Covered Loans | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
Allowance for credit losses | |||||||||||||||||||||||||||
Allowance for loan losses at beginning of period | $ | 32,900 | $ | 42,198 | $ | 12,288 | $ | 5,019 | $ | 6,921 | $ | 878 | $ | 100,204 | |||||||||||||
Other adjustments | (12 | ) | (85 | ) | — | (6 | ) | (50 | ) | — | (153 | ) | |||||||||||||||
Reclassification from allowance for unfunded lending-related commitments | — | (42 | ) | — | — | — | — | (42 | ) | ||||||||||||||||||
Charge-offs | (964 | ) | (1,948 | ) | (1,116 | ) | (1,138 | ) | (1,595 | ) | (116 | ) | (6,877 | ) | |||||||||||||
Recoveries | 462 | 213 | 42 | 136 | 294 | 52 | 1,199 | ||||||||||||||||||||
Provision for credit losses | 1,604 | 3,725 | 1,009 | 575 | 1,511 | 241 | 8,665 | ||||||||||||||||||||
Allowance for loan losses at period end | $ | 33,990 | $ | 44,061 | $ | 12,223 | $ | 4,586 | $ | 7,081 | $ | 1,055 | $ | 102,996 | |||||||||||||
Allowance for unfunded lending-related commitments at period end | $ | — | $ | 926 | $ | — | $ | — | $ | — | $ | — | $ | 926 | |||||||||||||
Allowance for credit losses at period end | $ | 33,990 | $ | 44,987 | $ | 12,223 | $ | 4,586 | $ | 7,081 | $ | 1,055 | $ | 103,922 | |||||||||||||
Individually evaluated for impairment | $ | 1,881 | $ | 5,832 | $ | 239 | $ | 544 | $ | — | $ | 30 | $ | 8,526 | |||||||||||||
Collectively evaluated for impairment | 31,943 | 38,361 | 11,984 | 4,042 | 7,081 | 1,024 | 94,435 | ||||||||||||||||||||
Loans acquired with deteriorated credit quality | 166 | 794 | — | — | — | 1 | 961 | ||||||||||||||||||||
Loans at period end | |||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 18,211 | $ | 68,947 | $ | 8,365 | $ | 18,267 | $ | — | $ | 430 | $ | 114,220 | |||||||||||||
Collectively evaluated for impairment | 4,359,035 | 5,077,627 | 789,100 | 549,794 | 4,733,764 | 131,472 | 15,640,792 | ||||||||||||||||||||
Loans acquired with deteriorated credit quality | 22,939 | 160,992 | — | 3,682 | 373,586 | — | 561,199 |
Nine months ended September 30, 2016 | Commercial Real Estate | Home Equity | Residential Real Estate | Premium Finance Receivable | Consumer and Other | Total, Excluding Covered Loans | |||||||||||||||||||||
(Dollars in thousands) | Commercial | ||||||||||||||||||||||||||
Allowance for credit losses | |||||||||||||||||||||||||||
Allowance for loan losses at beginning of period | $ | 36,135 | $ | 43,758 | $ | 12,012 | $ | 4,734 | $ | 7,233 | $ | 1,528 | $ | 105,400 | |||||||||||||
Other adjustments | (103 | ) | (203 | ) | — | (49 | ) | 31 | — | (324 | ) | ||||||||||||||||
Reclassification from allowance for unfunded lending-related commitments | (500 | ) | (200 | ) | — | — | — | — | (700 | ) | |||||||||||||||||
Charge-offs | (4,861 | ) | (1,555 | ) | (3,672 | ) | (1,320 | ) | (6,350 | ) | (720 | ) | (18,478 | ) | |||||||||||||
Recoveries | 926 | 1,029 | 184 | 204 | 1,876 | 143 | 4,362 | ||||||||||||||||||||
Provision for credit losses | 11,441 | 5,519 | 3,160 | 2,534 | 4,485 | 294 | 27,433 | ||||||||||||||||||||
Allowance for loan losses at period end | $ | 43,038 | $ | 48,348 | $ | 11,684 | $ | 6,103 | $ | 7,275 | $ | 1,245 | $ | 117,693 | |||||||||||||
Allowance for unfunded lending-related commitments at period end | $ | 500 | $ | 1,148 | $ | — | $ | — | $ | — | $ | — | $ | 1,648 | |||||||||||||
Allowance for credit losses at period end | $ | 43,538 | $ | 49,496 | $ | 11,684 | $ | 6,103 | $ | 7,275 | $ | 1,245 | $ | 119,341 |
Nine months ended September 30, 2015 | Commercial Real Estate | Home Equity | Residential Real Estate | Premium Finance Receivable | Consumer and Other | Total, Excluding Covered Loans | |||||||||||||||||||||
(Dollars in thousands) | Commercial | ||||||||||||||||||||||||||
Allowance for credit losses | |||||||||||||||||||||||||||
Allowance for loan losses at beginning of period | $ | 31,699 | $ | 35,533 | $ | 12,500 | $ | 4,218 | $ | 6,513 | $ | 1,242 | $ | 91,705 | |||||||||||||
Other adjustments | (42 | ) | (346 | ) | — | (14 | ) | (92 | ) | — | (494 | ) | |||||||||||||||
Reclassification from allowance for unfunded lending-related commitments | — | (151 | ) | — | — | — | — | (151 | ) | ||||||||||||||||||
Charge-offs | (2,884 | ) | (3,809 | ) | (3,547 | ) | (2,692 | ) | (4,384 | ) | (342 | ) | (17,658 | ) | |||||||||||||
Recoveries | 1,117 | 2,349 | 129 | 228 | 1,081 | 139 | 5,043 | ||||||||||||||||||||
Provision for credit losses | 4,100 | 10,485 | 3,141 | 2,846 | 3,963 | 16 | 24,551 | ||||||||||||||||||||
Allowance for loan losses at period end | $ | 33,990 | $ | 44,061 | $ | 12,223 | $ | 4,586 | $ | 7,081 | $ | 1,055 | $ | 102,996 | |||||||||||||
Allowance for unfunded lending-related commitments at period end | $ | — | $ | 926 | $ | — | $ | — | $ | — | $ | — | $ | 926 | |||||||||||||
Allowance for credit losses at period end | $ | 33,990 | $ | 44,987 | $ | 12,223 | $ | 4,586 | $ | 7,081 | $ | 1,055 | $ | 103,922 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||
(Dollars in thousands) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Balance at beginning of period | $ | 2,412 | $ | 2,215 | $ | 3,026 | $ | 2,131 | |||||||
Provision for covered loan losses before benefit attributable to FDIC loss share agreements | (847 | ) | (1,716 | ) | (3,495 | ) | (3,339 | ) | |||||||
Benefit attributable to FDIC loss share agreements | 677 | 1,373 | 2,796 | 2,671 | |||||||||||
Net provision for covered loan losses | (170 | ) | (343 | ) | (699 | ) | (668 | ) | |||||||
Increase/decrease in FDIC indemnification liability/asset | (677 | ) | (1,373 | ) | (2,796 | ) | (2,671 | ) | |||||||
Loans charged-off | (918 | ) | (287 | ) | (1,291 | ) | (664 | ) | |||||||
Recoveries of loans charged-off | 775 | 2,706 | 3,182 | 4,790 | |||||||||||
Net (charge-offs) recoveries | (143 | ) | 2,419 | 1,891 | 4,126 | ||||||||||
Balance at end of period | $ | 1,422 | $ | 2,918 | $ | 1,422 | $ | 2,918 |
September 30, | December 31, | September 30, | |||||||||
(Dollars in thousands) | 2016 | 2015 | 2015 | ||||||||
Impaired loans (included in non-performing and TDRs): | |||||||||||
Impaired loans with an allowance for loan loss required (1) | $ | 39,022 | $ | 49,961 | $ | 51,113 | |||||
Impaired loans with no allowance for loan loss required | 51,518 | 51,294 | 61,914 | ||||||||
Total impaired loans (2) | $ | 90,540 | $ | 101,255 | $ | 113,027 | |||||
Allowance for loan losses related to impaired loans | $ | 6,836 | $ | 6,380 | $ | 8,483 | |||||
TDRs | $ | 44,276 | $ | 51,853 | $ | 59,320 |
(1) | These impaired loans require an allowance for loan losses because the estimated fair value of the loans or related collateral is less than the recorded investment in the loans. |
(2) | Impaired loans are considered by the Company to be non-accrual loans, TDRs or loans with principal and/or interest at risk, even if the loan is current with all payments of principal and interest. |
For the Nine Months Ended | |||||||||||||||||||
As of September 30, 2016 | September 30, 2016 | ||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Impaired loans with a related ASC 310 allowance recorded | |||||||||||||||||||
Commercial | |||||||||||||||||||
Commercial, industrial and other | $ | 5,426 | $ | 5,434 | $ | 1,887 | $ | 5,487 | $ | 212 | |||||||||
Asset-based lending | 234 | 235 | 44 | 235 | 7 | ||||||||||||||
Leases | 375 | 375 | 116 | 388 | 14 | ||||||||||||||
Commercial real estate | |||||||||||||||||||
Construction | — | — | — | — | — | ||||||||||||||
Land | 2,620 | 2,620 | 44 | 2,670 | 80 | ||||||||||||||
Office | 1,697 | 2,361 | 182 | 1,722 | 79 | ||||||||||||||
Industrial | 6,855 | 7,338 | 1,388 | 7,069 | 284 | ||||||||||||||
Retail | 6,605 | 6,623 | 240 | 6,668 | 160 | ||||||||||||||
Multi-family | 1,266 | 1,266 | 8 | 1,134 | 29 | ||||||||||||||
Mixed use and other | 5,437 | 5,511 | 605 | 5,452 | 198 | ||||||||||||||
Home equity | 2,373 | 2,457 | 964 | 2,404 | 63 | ||||||||||||||
Residential real estate | 5,942 | 6,428 | 1,166 | 5,807 | 190 | ||||||||||||||
Consumer and other | 192 | 192 | 192 | 194 | 8 | ||||||||||||||
Impaired loans with no related ASC 310 allowance recorded | |||||||||||||||||||
Commercial | |||||||||||||||||||
Commercial, industrial and other | $ | 12,669 | $ | 16,261 | $ | — | $ | 14,745 | $ | 717 | |||||||||
Asset-based lending | — | — | — | — | — | ||||||||||||||
Leases | — | — | — | — | — | ||||||||||||||
Commercial real estate | |||||||||||||||||||
Construction | 1,995 | 1,995 | — | 2,273 | 94 | ||||||||||||||
Land | 3,864 | 8,088 | — | 4,316 | 408 | ||||||||||||||
Office | 4,980 | 6,243 | — | 4,978 | 260 | ||||||||||||||
Industrial | 3,508 | 3,827 | — | 3,574 | 200 | ||||||||||||||
Retail | 805 | 913 | — | 936 | 36 | ||||||||||||||
Multi-family | 89 | 174 | — | 109 | 5 | ||||||||||||||
Mixed use and other | 5,164 | 5,712 | — | 5,300 | 236 | ||||||||||||||
Home equity | 6,936 | 9,108 | — | 7,736 | 320 | ||||||||||||||
Residential real estate | 11,098 | 13,077 | — | 11,125 | 445 | ||||||||||||||
Consumer and other | 410 | 520 | — | 428 | 21 | ||||||||||||||
Total impaired loans, net of unearned income | $ | 90,540 | $ | 106,758 | $ | 6,836 | $ | 94,750 | $ | 4,066 |
For the Twelve Months Ended | |||||||||||||||||||
As of December 31, 2015 | December 31, 2015 | ||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Impaired loans with a related ASC 310 allowance recorded | |||||||||||||||||||
Commercial | |||||||||||||||||||
Commercial, industrial and other | $ | 9,754 | $ | 12,498 | $ | 2,012 | $ | 10,123 | $ | 792 | |||||||||
Asset-based lending | — | — | — | — | — | ||||||||||||||
Leases | — | — | — | — | — | ||||||||||||||
Commercial real estate | |||||||||||||||||||
Construction | — | — | — | — | — | ||||||||||||||
Land | 4,929 | 8,711 | 41 | 5,127 | 547 | ||||||||||||||
Office | 5,050 | 6,051 | 632 | 5,394 | 314 | ||||||||||||||
Industrial | 8,413 | 9,105 | 1,943 | 10,590 | 565 | ||||||||||||||
Retail | 8,527 | 9,230 | 343 | 8,596 | 386 | ||||||||||||||
Multi-family | 370 | 370 | 202 | 372 | 25 | ||||||||||||||
Mixed use and other | 7,590 | 7,708 | 570 | 7,681 | 328 | ||||||||||||||
Home equity | 423 | 435 | 333 | 351 | 16 | ||||||||||||||
Residential real estate | 4,710 | 4,799 | 294 | 4,618 | 182 | ||||||||||||||
Consumer and other | 195 | 220 | 10 | 216 | 12 | ||||||||||||||
Impaired loans with no related ASC 310 allowance recorded | |||||||||||||||||||
Commercial | |||||||||||||||||||
Commercial, industrial and other | $ | 8,562 | $ | 9,915 | $ | — | $ | 9,885 | $ | 521 | |||||||||
Asset-based lending | 8 | 1,570 | — | 5 | 88 | ||||||||||||||
Leases | — | — | — | — | — | ||||||||||||||
Commercial real estate | |||||||||||||||||||
Construction | 2,328 | 2,329 | — | 2,316 | 113 | ||||||||||||||
Land | 888 | 2,373 | — | 929 | 90 | ||||||||||||||
Office | 3,500 | 4,484 | — | 3,613 | 237 | ||||||||||||||
Industrial | 2,217 | 2,426 | — | 2,286 | 188 | ||||||||||||||
Retail | 2,757 | 2,925 | — | 2,897 | 129 | ||||||||||||||
Multi-family | 2,344 | 2,807 | — | 2,390 | 117 | ||||||||||||||
Mixed use and other | 10,510 | 14,060 | — | 11,939 | 624 | ||||||||||||||
Home equity | 6,424 | 7,987 | — | 5,738 | 288 | ||||||||||||||
Residential real estate | 11,559 | 13,979 | — | 11,903 | 624 | ||||||||||||||
Consumer and other | 197 | 267 | — | 201 | 12 | ||||||||||||||
Total impaired loans, net of unearned income | $ | 101,255 | $ | 124,249 | $ | 6,380 | $ | 107,170 | $ | 6,198 |
For the Nine Months Ended | |||||||||||||||||||
As of September 30, 2015 | September 30, 2015 | ||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Impaired loans with a related ASC 310 allowance recorded | |||||||||||||||||||
Commercial | |||||||||||||||||||
Commercial, industrial and other | $ | 8,580 | $ | 9,118 | $ | 1,865 | $ | 8,906 | $ | 381 | |||||||||
Asset-based lending | — | — | — | — | — | ||||||||||||||
Leases | — | — | — | — | — | ||||||||||||||
Commercial real estate | |||||||||||||||||||
Construction | — | — | — | — | — | ||||||||||||||
Land | 3,559 | 7,309 | 31 | 3,713 | 362 | ||||||||||||||
Office | 6,765 | 7,724 | 2,162 | 7,113 | 263 | ||||||||||||||
Industrial | 10,049 | 10,542 | 1,550 | 10,662 | 421 | ||||||||||||||
Retail | 8,899 | 9,596 | 381 | 8,906 | 306 | ||||||||||||||
Multi-family | 1,199 | 1,622 | 203 | 1,210 | 60 | ||||||||||||||
Mixed use and other | 7,162 | 7,345 | 1,501 | 7,250 | 224 | ||||||||||||||
Home equity | 547 | 762 | 239 | 672 | 25 | ||||||||||||||
Residential real estate | 4,225 | 4,326 | 521 | 4,280 | 130 | ||||||||||||||
Consumer and other | 128 | 128 | 30 | 139 | 6 | ||||||||||||||
Impaired loans with no related ASC 310 allowance recorded | |||||||||||||||||||
Commercial | |||||||||||||||||||
Commercial, industrial and other | $ | 9,142 | $ | 11,997 | $ | — | $ | 9,716 | $ | 539 | |||||||||
Asset-based lending | 12 | 1,573 | — | 4 | 66 | ||||||||||||||
Leases | — | — | — | — | — | ||||||||||||||
Commercial real estate | |||||||||||||||||||
Construction | 2,054 | 2,055 | — | 2,034 | 73 | ||||||||||||||
Land | 4,114 | 4,874 | — | 4,232 | 130 | ||||||||||||||
Office | 4,171 | 5,120 | — | 4,243 | 194 | ||||||||||||||
Industrial | 2,255 | 2,448 | — | 2,304 | 141 | ||||||||||||||
Retail | 3,140 | 3,302 | — | 3,305 | 104 | ||||||||||||||
Multi-family | 1,330 | 1,635 | — | 1,522 | 50 | ||||||||||||||
Mixed use and other | 13,788 | 16,576 | — | 14,668 | 563 | ||||||||||||||
Home equity | 7,818 | 8,406 | — | 7,065 | 229 | ||||||||||||||
Residential real estate | 13,788 | 15,932 | — | 14,387 | 449 | ||||||||||||||
Consumer and other | 302 | 398 | — | 311 | 15 | ||||||||||||||
Total impaired loans, net of unearned income | $ | 113,027 | $ | 132,788 | $ | 8,483 | $ | 116,642 | $ | 4,731 |
Three months ended September 30, 2016 (Dollars in thousands) | Total (1)(2) | Extension at Below Market Terms (2) | Reduction of Interest Rate (2) | Modification to Interest-only Payments (2) | Forgiveness of Debt(2) | ||||||||||||||||||||||||||||||
Count | Balance | Count | Balance | Count | Balance | Count | Balance | Count | Balance | ||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||||
Commercial, industrial and other | 1 | $ | 28 | 1 | $ | 28 | — | $ | — | — | $ | — | — | $ | — | ||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||||||||
Office | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Industrial | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Mixed use and other | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Residential real estate and other | 1 | 43 | 1 | 43 | 1 | 43 | — | — | — | — | |||||||||||||||||||||||||
Total loans | 2 | $ | 71 | 2 | $ | 71 | 1 | $ | 43 | — | $ | — | — | $ | — |
Three months ended September 30, 2015 (Dollars in thousands) | Total (1)(2) | Extension at Below Market Terms (2) | Reduction of Interest Rate (2) | Modification to Interest-only Payments (2) | Forgiveness of Debt(2) | ||||||||||||||||||||||||||||||
Count | Balance | Count | Balance | Count | Balance | Count | Balance | Count | Balance | ||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||||
Commercial, industrial and other | — | $ | — | — | $ | — | — | $ | — | — | $ | — | — | $ | — | ||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||||||||
Office | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Industrial | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Mixed use and other | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Residential real estate and other | 1 | 222 | 1 | 222 | 1 | 222 | — | — | — | — | |||||||||||||||||||||||||
Total loans | 1 | $ | 222 | 1 | $ | 222 | 1 | $ | 222 | — | $ | — | — | $ | — |
(1) | TDRs may have more than one modification representing a concession. As such, TDRs during the period may be represented in more than one of the categories noted above. |
(2) | Balances represent the recorded investment in the loan at the time of the restructuring. |
Nine months ended September 30, 2016 (Dollars in thousands) | Total (1)(2) | Extension at Below Market Terms (2) | Reduction of Interest Rate (2) | Modification to Interest-only Payments (2) | Forgiveness of Debt(2) | ||||||||||||||||||||||||||||||
Count | Balance | Count | Balance | Count | Balance | Count | Balance | Count | Balance | ||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||||
Commercial, industrial and other | 3 | $ | 345 | 3 | $ | 345 | — | $ | — | — | $ | — | 1 | $ | 275 | ||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||||||||
Office | 1 | 450 | 1 | 450 | — | — | — | — | — | — | |||||||||||||||||||||||||
Industrial | 6 | 7,921 | 6 | 7,921 | 3 | 7,196 | — | — | — | — | |||||||||||||||||||||||||
Mixed use and other | 2 | 150 | 2 | 150 | — | — | — | — | — | — | |||||||||||||||||||||||||
Residential real estate and other | 3 | 583 | 2 | 423 | 3 | 583 | 1 | 380 | — | — | |||||||||||||||||||||||||
Total loans | 15 | $ | 9,449 | 14 | $ | 9,289 | 6 | $ | 7,779 | 1 | $ | 380 | 1 | $ | 275 |
(1) | TDRs may have more than one modification representing a concession. As such, TDRs during the period may be represented in more than one of the categories noted above. |
(2) | Balances represent the recorded investment in the loan at the time of the restructuring. |
Nine months ended September 30, 2015 (Dollars in thousands) | Total (1)(2) | Extension at Below Market Terms (2) | Reduction of Interest Rate (2) | Modification to Interest-only Payments (2) | Forgiveness of Debt(2) | ||||||||||||||||||||||||||||||
Count | Balance | Count | Balance | Count | Balance | Count | Balance | Count | Balance | ||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||||
Commercial, industrial and other | — | $ | — | — | $ | — | — | $ | — | — | $ | — | — | $ | — | ||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||||||||
Office | — | — | — | — | |||||||||||||||||||||||||||||||
Industrial | 1 | 169 | 1 | 169 | — | — | 1 | 169 | — | — | |||||||||||||||||||||||||
Mixed use and other | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Residential real estate and other | 9 | 1,664 | 9 | 1,664 | 5 | 674 | 1 | 50 | — | — | |||||||||||||||||||||||||
Total loans | 10 | $ | 1,833 | 10 | $ | 1,833 | 5 | $ | 674 | 2 | $ | 219 | — | $ | — |
(1) | TDRs may have more than one modification representing a concession. As such, TDRs during the period may be represented in more than one of the categories noted above. |
(2) | Balances represent the recorded investment in the loan at the time of the restructuring. |
(Dollars in thousands) | As of September 30, 2016 | Three Months Ended September 30, 2016 | Nine Months Ended September 30, 2016 | |||||||||||||||||
Total (1)(3) | Payments in Default (2)(3) | Payments in Default (2)(3) | ||||||||||||||||||
Count | Balance | Count | Balance | Count | Balance | |||||||||||||||
Commercial | ||||||||||||||||||||
Commercial, industrial and other | 3 | $ | 345 | — | $ | — | — | $ | — | |||||||||||
Commercial real estate | ||||||||||||||||||||
Office | 1 | 450 | 1 | 450 | 1 | 450 | ||||||||||||||
Industrial | 6 | 7,921 | 3 | 725 | 3 | 725 | ||||||||||||||
Mixed use and other | 4 | 351 | 1 | 16 | 3 | 217 | ||||||||||||||
Residential real estate and other | 3 | 583 | — | — | — | — | ||||||||||||||
Total loans | 17 | $ | 9,650 | 5 | $ | 1,191 | 7 | $ | 1,392 |
(Dollars in thousands) | As of September 30, 2015 | Three Months Ended September 30, 2015 | Nine Months Ended September 30, 2015 | |||||||||||||||||
Total (1)(3) | Payments in Default (2)(3) | Payments in Default (2)(3) | ||||||||||||||||||
Count | Balance | Count | Balance | Count | Balance | |||||||||||||||
Commercial | ||||||||||||||||||||
Commercial, industrial and other | 1 | $ | 1,461 | — | $ | — | — | $ | — | |||||||||||
Commercial real estate | ||||||||||||||||||||
Office | 1 | 720 | — | — | — | — | ||||||||||||||
Industrial | 2 | 854 | 1 | 685 | 1 | 685 | ||||||||||||||
Mixed use and other | — | — | — | — | — | — | ||||||||||||||
Residential real estate and other | 11 | 2,613 | 2 | 131 | 3 | 345 | ||||||||||||||
Total loans | 15 | $ | 5,648 | 3 | $ | 816 | 4 | $ | 1,030 |
(1) | Total TDRs represent all loans restructured in TDRs during the previous twelve months from the date indicated. |
(2) | TDRs considered to be in payment default are over 30 days past-due subsequent to the restructuring. |
(3) | Balances represent the recorded investment in the loan at the time of the restructuring. |
(Dollars in thousands) | January 1, 2016 | Goodwill Acquired | Impairment Loss | Goodwill Adjustments | September 30, 2016 | ||||||||||||||
Community banking | $ | 401,612 | $ | 11,470 | $ | — | $ | 1,517 | $ | 414,599 | |||||||||
Specialty finance | 38,035 | — | — | 1,190 | 39,225 | ||||||||||||||
Wealth management | 32,114 | — | — | — | 32,114 | ||||||||||||||
Total | $ | 471,761 | $ | 11,470 | $ | — | $ | 2,707 | $ | 485,938 |
(Dollars in thousands) | September 30, 2016 | December 31, 2015 | September 30, 2015 | ||||||||
Community banking segment: | |||||||||||
Core deposit intangibles: | |||||||||||
Gross carrying amount | $ | 34,998 | $ | 34,841 | $ | 34,840 | |||||
Accumulated amortization | (20,598 | ) | (17,382 | ) | (16,195 | ) | |||||
Net carrying amount | $ | 14,400 | $ | 17,459 | $ | 18,645 | |||||
Specialty finance segment: | |||||||||||
Customer list intangibles: | |||||||||||
Gross carrying amount | $ | 1,800 | $ | 1,800 | $ | 1,800 | |||||
Accumulated amortization | (1,129 | ) | (1,052 | ) | (1,027 | ) | |||||
Net carrying amount | $ | 671 | $ | 748 | $ | 773 | |||||
Wealth management segment: | |||||||||||
Customer list and other intangibles: | |||||||||||
Gross carrying amount | $ | 7,940 | $ | 7,940 | $ | 7,940 | |||||
Accumulated amortization | (2,275 | ) | (1,938 | ) | (1,825 | ) | |||||
Net carrying amount | $ | 5,665 | $ | 6,002 | $ | 6,115 | |||||
Total other intangible assets, net | $ | 20,736 | $ | 24,209 | $ | 25,533 |
Estimated amortization | |||
Actual in nine months ended September 30, 2016 | $ | 3,631 | |
Estimated remaining in 2016 | 1,057 | ||
Estimated—2017 | 3,902 | ||
Estimated—2018 | 3,395 | ||
Estimated—2019 | 2,875 | ||
Estimated—2020 | 2,334 |
(Dollars in thousands) | September 30, 2016 | December 31, 2015 | September 30, 2015 | ||||||||
Balance: | |||||||||||
Non-interest bearing | $ | 5,711,042 | $ | 4,836,420 | $ | 4,705,994 | |||||
NOW and interest bearing demand deposits | 2,552,611 | 2,390,217 | 2,231,258 | ||||||||
Wealth management deposits | 2,283,233 | 1,643,653 | 1,469,920 | ||||||||
Money market | 4,421,631 | 4,041,300 | 4,001,518 | ||||||||
Savings | 1,977,661 | 1,723,367 | 1,684,007 | ||||||||
Time certificates of deposit | 4,201,477 | 4,004,677 | 4,135,772 | ||||||||
Total deposits | $ | 21,147,655 | $ | 18,639,634 | $ | 18,228,469 | |||||
Mix: | |||||||||||
Non-interest bearing | 27 | % | 26 | % | 26 | % | |||||
NOW and interest bearing demand deposits | 12 | 13 | 12 | ||||||||
Wealth management deposits | 11 | 9 | 8 | ||||||||
Money market | 21 | 22 | 22 | ||||||||
Savings | 9 | 9 | 9 | ||||||||
Time certificates of deposit | 20 | 21 | 23 | ||||||||
Total deposits | 100 | % | 100 | % | 100 | % |
(Dollars in thousands) | September 30, 2016 | December 31, 2015 | September 30, 2015 | ||||||||
FHLB advances | $ | 419,632 | $ | 853,431 | $ | 443,955 | |||||
Other borrowings: | |||||||||||
Notes payable | 56,191 | 67,429 | 71,250 | ||||||||
Short-term borrowings | 33,173 | 63,887 | 57,590 | ||||||||
Other | 18,360 | 18,965 | 18,332 | ||||||||
Secured borrowings | 133,642 | 115,504 | 112,633 | ||||||||
Total other borrowings | 241,366 | 265,785 | 259,805 | ||||||||
Subordinated notes | 138,943 | 138,861 | 138,834 | ||||||||
Total FHLB advances, other borrowings and subordinated notes | $ | 799,941 | $ | 1,258,077 | $ | 842,594 |
(Dollars in thousands) | Overnight Sweep Collateral | |||
Available-for-sale securities pledged | ||||
Corporate notes: | ||||
Financial issuers | $ | 3,945 | ||
Mortgage-backed securities | 19,853 | |||
Held-to-maturity securities pledged | ||||
U.S. Government agencies | 20,296 | |||
Total collateral pledged | $ | 44,094 | ||
Excess collateral | 10,921 | |||
Securities sold under repurchase agreements | $ | 33,173 |
(Dollars in thousands) | Common Securities | Trust Preferred Securities | Junior Subordinated Debentures | Rate Structure | Contractual rate at 9/30/2016 | Issue Date | Maturity Date | Earliest Redemption Date | ||||||||||||||
Wintrust Capital Trust III | $ | 774 | $ | 25,000 | $ | 25,774 | L+3.25 | 3.93 | % | 04/2003 | 04/2033 | 04/2008 | ||||||||||
Wintrust Statutory Trust IV | 619 | 20,000 | 20,619 | L+2.80 | 3.64 | % | 12/2003 | 12/2033 | 12/2008 | |||||||||||||
Wintrust Statutory Trust V | 1,238 | 40,000 | 41,238 | L+2.60 | 3.44 | % | 05/2004 | 05/2034 | 06/2009 | |||||||||||||
Wintrust Capital Trust VII | 1,550 | 50,000 | 51,550 | L+1.95 | 2.80 | % | 12/2004 | 03/2035 | 03/2010 | |||||||||||||
Wintrust Capital Trust VIII | 1,238 | 25,000 | 26,238 | L+1.45 | 2.29 | % | 08/2005 | 09/2035 | 09/2010 | |||||||||||||
Wintrust Capital Trust IX | 1,547 | 50,000 | 51,547 | L+1.63 | 2.48 | % | 09/2006 | 09/2036 | 09/2011 | |||||||||||||
Northview Capital Trust I | 186 | 6,000 | 6,186 | L+3.00 | 3.76 | % | 08/2003 | 11/2033 | 08/2008 | |||||||||||||
Town Bankshares Capital Trust I | 186 | 6,000 | 6,186 | L+3.00 | 3.76 | % | 08/2003 | 11/2033 | 08/2008 | |||||||||||||
First Northwest Capital Trust I | 155 | 5,000 | 5,155 | L+3.00 | 3.84 | % | 05/2004 | 05/2034 | 05/2009 | |||||||||||||
Suburban Illinois Capital Trust II | 464 | 15,000 | 15,464 | L+1.75 | 2.60 | % | 12/2006 | 12/2036 | 12/2011 | |||||||||||||
Community Financial Shares Statutory Trust II | 109 | 3,500 | 3,609 | L+1.62 | 2.47 | % | 06/2007 | 09/2037 | 06/2012 | |||||||||||||
Total | $ | 253,566 | 3.02 | % |
Three months ended | $ Change in Contribution | % Change in Contribution | ||||||||||||
(Dollars in thousands) | September 30, 2016 | September 30, 2015 | ||||||||||||
Net interest income: | ||||||||||||||
Community Banking | $ | 150,159 | $ | 132,542 | $ | 17,617 | 13 | % | ||||||
Specialty Finance | 25,543 | 24,657 | 886 | 4 | ||||||||||
Wealth Management | 4,835 | 4,368 | 467 | 11 | ||||||||||
Total Operating Segments | 180,537 | 161,567 | 18,970 | 12 | ||||||||||
Intersegment Eliminations | 4,099 | 3,973 | 126 | 3 | ||||||||||
Consolidated net interest income | $ | 184,636 | $ | 165,540 | $ | 19,096 | 12 | % | ||||||
Non-interest income: | ||||||||||||||
Community Banking | $ | 62,730 | $ | 45,574 | $ | 17,156 | 38 | % | ||||||
Specialty Finance | 12,226 | 8,264 | 3,962 | 48 | ||||||||||
Wealth Management | 20,045 | 18,362 | 1,683 | 9 | ||||||||||
Total Operating Segments | 95,001 | 72,200 | 22,801 | 32 | ||||||||||
Intersegment Eliminations | (8,397 | ) | (7,247 | ) | (1,150 | ) | (16 | ) | ||||||
Consolidated non-interest income | $ | 86,604 | $ | 64,953 | $ | 21,651 | 33 | % | ||||||
Net revenue: | ||||||||||||||
Community Banking | $ | 212,889 | $ | 178,116 | $ | 34,773 | 20 | % | ||||||
Specialty Finance | 37,769 | 32,921 | 4,848 | 15 | ||||||||||
Wealth Management | 24,880 | 22,730 | 2,150 | 9 | ||||||||||
Total Operating Segments | 275,538 | 233,767 | 41,771 | 18 | ||||||||||
Intersegment Eliminations | (4,298 | ) | (3,274 | ) | (1,024 | ) | (31 | ) | ||||||
Consolidated net revenue | $ | 271,240 | $ | 230,493 | $ | 40,747 | 18 | % | ||||||
Segment profit: | ||||||||||||||
Community Banking | $ | 37,527 | $ | 22,723 | $ | 14,804 | 65 | % | ||||||
Specialty Finance | 12,767 | 12,545 | 222 | 2 | ||||||||||
Wealth Management | 2,821 | 3,087 | (266 | ) | (9 | ) | ||||||||
Consolidated net income | $ | 53,115 | $ | 38,355 | $ | 14,760 | 38 | % | ||||||
Segment assets: | ||||||||||||||
Community Banking | $ | 21,019,002 | $ | 18,497,364 | $ | 2,521,638 | 14 | % | ||||||
Specialty Finance | 3,702,241 | 2,987,021 | 715,220 | 24 | ||||||||||
Wealth Management | 600,516 | 550,831 | 49,685 | 9 | ||||||||||
Consolidated total assets | $ | 25,321,759 | $ | 22,035,216 | $ | 3,286,543 | 15 | % |
Nine months ended | $ Change in Contribution | % Change in Contribution | ||||||||||||
(Dollars in thousands) | September 30, 2016 | September 30, 2015 | ||||||||||||
Net interest income: | ||||||||||||||
Community Banking | $ | 434,108 | $ | 382,187 | $ | 51,921 | 14 | % | ||||||
Specialty Finance | 71,075 | 67,041 | 4,034 | 6 | ||||||||||
Wealth Management | 13,701 | 12,837 | 864 | 7 | ||||||||||
Total Operating Segments | 518,884 | 462,065 | 56,819 | 12 | ||||||||||
Intersegment Eliminations | 12,531 | 12,258 | 273 | 2 | ||||||||||
Consolidated net interest income | $ | 531,415 | $ | 474,323 | $ | 57,092 | 12 | % | ||||||
Non-interest income: | ||||||||||||||
Community Banking | $ | 169,210 | $ | 146,739 | $ | 22,471 | 15 | % | ||||||
Specialty Finance | 37,111 | 25,270 | 11,841 | 47 | ||||||||||
Wealth Management | 58,660 | 56,103 | 2,557 | 5 | ||||||||||
Total Operating Segments | 264,981 | 228,112 | 36,869 | 16 | ||||||||||
Intersegment Eliminations | (24,826 | ) | (21,605 | ) | (3,221 | ) | (15 | ) | ||||||
Consolidated non-interest income | $ | 240,155 | $ | 206,507 | $ | 33,648 | 16 | % | ||||||
Net revenue: | ||||||||||||||
Community Banking | $ | 603,318 | $ | 528,926 | $ | 74,392 | 14 | % | ||||||
Specialty Finance | 108,186 | 92,311 | 15,875 | 17 | ||||||||||
Wealth Management | 72,361 | 68,940 | 3,421 | 5 | ||||||||||
Total Operating Segments | 783,865 | 690,177 | 93,688 | 14 | ||||||||||
Intersegment Eliminations | (12,295 | ) | (9,347 | ) | (2,948 | ) | (32 | ) | ||||||
Consolidated net revenue | $ | 771,570 | $ | 680,830 | $ | 90,740 | 13 | % | ||||||
Segment profit: | ||||||||||||||
Community Banking | $ | 106,860 | $ | 76,821 | $ | 30,039 | 39 | % | ||||||
Specialty Finance | 36,283 | 34,875 | 1,408 | 4 | ||||||||||
Wealth Management | 9,124 | 9,542 | (418 | ) | (4 | ) | ||||||||
Consolidated net income | $ | 152,267 | $ | 121,238 | $ | 31,029 | 26 | % |
(Dollars in thousands) | ||||||||
Notional | Accounting | Fair Value as of | ||||||
Effective Date | Maturity Date | Amount | Treatment | September 30, 2016 | ||||
March 21, 2013 | March 21, 2017 | $ | 100,000 | Non-Hedge Designated | $ | 1 | ||
May 16, 2013 | November 16, 2016 | 75,000 | Non-Hedge Designated | — | ||||
September 15, 2013 | September 15, 2017 | 50,000 | Cash Flow Hedging | 9 | ||||
September 30, 2013 | September 30, 2017 | 40,000 | Cash Flow Hedging | 8 | ||||
$ | 265,000 | $ | 18 |
Derivative Assets | Derivative Liabilities | ||||||||||||||||||||||
(Dollars in thousands) | September 30, 2016 | December 31, 2015 | September 30, 2015 | September 30, 2016 | December 31, 2015 | September 30, 2015 | |||||||||||||||||
Derivatives designated as hedging instruments under ASC 815: | |||||||||||||||||||||||
Interest rate derivatives designated as Cash Flow Hedges | $ | 549 | $ | 242 | $ | 216 | $ | 7 | $ | 846 | $ | 1,329 | |||||||||||
Interest rate derivatives designated as Fair Value Hedges | 177 | 27 | 5 | 907 | 143 | 291 | |||||||||||||||||
Total derivatives designated as hedging instruments under ASC 815 | $ | 726 | $ | 269 | $ | 221 | $ | 914 | $ | 989 | $ | 1,620 | |||||||||||
Derivatives not designated as hedging instruments under ASC 815: | |||||||||||||||||||||||
Interest rate derivatives | $ | 79,477 | $ | 42,510 | $ | 56,717 | $ | 79,199 | $ | 41,469 | $ | 55,809 | |||||||||||
Interest rate lock commitments | 8,352 | 7,401 | 11,836 | 4,060 | 171 | — | |||||||||||||||||
Forward commitments to sell mortgage loans | — | 745 | — | 3,505 | 2,275 | 7,713 | |||||||||||||||||
Foreign exchange contracts | 273 | 373 | 260 | 270 | 115 | 56 | |||||||||||||||||
Total derivatives not designated as hedging instruments under ASC 815 | $ | 88,102 | $ | 51,029 | $ | 68,813 | $ | 87,034 | $ | 44,030 | $ | 63,578 | |||||||||||
Total Derivatives | $ | 88,828 | $ | 51,298 | $ | 69,034 | $ | 87,948 | $ | 45,019 | $ | 65,198 |
September 30, 2016 | |||||||
(Dollars in thousands) | Notional | Fair Value | |||||
Maturity Date | Amount | Asset (Liability) | |||||
Interest Rate Swaps: | |||||||
October 2016 | $ | 25,000 | $ | (7 | ) | ||
July 2019 | 250,000 | 106 | |||||
August 2019 | 275,000 | 426 | |||||
Total Interest Rate Swaps | $ | 550,000 | $ | 525 | |||
Interest Rate Caps: | |||||||
September 2017 | $ | 50,000 | $ | 9 | |||
September 2017 | 40,000 | 8 | |||||
Total Interest Rate Caps | $ | 90,000 | $ | 17 | |||
Total Cash Flow Hedges | $ | 640,000 | $ | 542 |
Three months ended | Nine months ended | ||||||||||||||
(Dollars in thousands) | September 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | |||||||||||
Unrealized loss at beginning of period | $ | (3,574 | ) | $ | (4,408 | ) | $ | (3,529 | ) | $ | (4,062 | ) | |||
Amount reclassified from accumulated other comprehensive loss to interest expense on deposits and junior subordinated debentures | 1,065 | 571 | 2,620 | 1,460 | |||||||||||
Amount of gain (loss) recognized in other comprehensive income | 1,708 | (503 | ) | 108 | (1,738 | ) | |||||||||
Unrealized loss at end of period | $ | (801 | ) | $ | (4,340 | ) | $ | (801 | ) | $ | (4,340 | ) |
(Dollars in thousands) Derivatives in Fair Value Hedging Relationships | Location of Gain/(Loss) Recognized in Income on Derivative | Amount of Gain/(Loss) Recognized in Income on Derivative Three Months Ended | Amount of (Loss)/Gain Recognized in Income on Hedged Item Three Months Ended | Income Statement Gain/ (Loss) due to Hedge Ineffectiveness Three Months Ended | |||||||||||||||||||||
September 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | ||||||||||||||||||||
Interest rate swaps | Trading losses, net | $ | 269 | $ | (323 | ) | $ | (234 | ) | $ | 302 | $ | 35 | $ | (21 | ) |
(Dollars in thousands) Derivatives in Fair Value Hedging Relationships | Location of Gain/(Loss) Recognized in Income on Derivative | Amount of Gain/(Loss) Recognized in Income on Derivative Nine Months Ended | Amount of (Loss)/Gain Recognized in Income on Hedged Item Nine Months Ended | Income Statement Gain/ (Loss) due to Hedge Ineffectiveness Nine Months Ended | |||||||||||||||||||||
September 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | ||||||||||||||||||||
Interest rate swaps | Trading losses, net | $ | (614 | ) | $ | (338 | ) | $ | 627 | $ | 315 | $ | 13 | $ | (23 | ) |
(Dollars in thousands) | Three Months Ended | Nine Months Ended | |||||||||||||||
Derivative | Location in income statement | September 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | ||||||||||||
Interest rate swaps and caps | Trading (losses) gains, net | $ | (395 | ) | $ | (275 | ) | $ | (751 | ) | $ | (592 | ) | ||||
Mortgage banking derivatives | Mortgage banking revenue | (2,215 | ) | (4,062 | ) | (3,058 | ) | (1,669 | ) | ||||||||
Covered call options | Fees from covered call options | 3,633 | 2,810 | 9,994 | 11,735 | ||||||||||||
Foreign exchange contracts | Trading (losses) gains, net | (26 | ) | 113 | (262 | ) | 133 |
Derivative Assets | Derivative Liabilities | ||||||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||||||
(Dollars in thousands) | September 30, 2016 | December 31, 2015 | September 30, 2015 | September 30, 2016 | December 31, 2015 | September 30, 2015 | |||||||||||||||||
Gross Amounts Recognized | $ | 80,203 | $ | 42,779 | $ | 56,938 | $ | 80,113 | $ | 42,458 | $ | 57,429 | |||||||||||
Less: Amounts offset in the Statements of Financial Condition | — | — | — | — | — | — | |||||||||||||||||
Net amount presented in the Statements of Financial Condition | $ | 80,203 | $ | 42,779 | $ | 56,938 | $ | 80,113 | $ | 42,458 | $ | 57,429 | |||||||||||
Gross amounts not offset in the Statements of Financial Condition | |||||||||||||||||||||||
Offsetting Derivative Positions | (958 | ) | (753 | ) | (614 | ) | (958 | ) | (753 | ) | (614 | ) | |||||||||||
Collateral Posted (1) | — | — | — | (79,155 | ) | (41,705 | ) | (54,410 | ) | ||||||||||||||
Net Credit Exposure | $ | 79,245 | $ | 42,026 | $ | 56,324 | $ | — | $ | — | $ | 2,405 |
(1) | As of September 30, 2016 and December 31, 2015, the Company posted collateral of $86.0 million and $45.5 million, respectively, which resulted in excess collateral with its counterparties. For purposes of this disclosure, the amount of posted collateral is limited to the amount offsetting the derivative liability. |
• | Level 1—unadjusted quoted prices in active markets for identical assets or liabilities. |
• | Level 2—inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability or inputs that are derived principally from or corroborated by observable market data by correlation or other means. |
• | Level 3—significant unobservable inputs that reflect the Company’s own assumptions that market participants would use in pricing the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. |
September 30, 2016 | |||||||||||||||
(Dollars in thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||
Available-for-sale securities | |||||||||||||||
U.S. Treasury | $ | 30,036 | $ | — | $ | 30,036 | $ | — | |||||||
U.S. Government agencies | 93,683 | — | 93,683 | — | |||||||||||
Municipal | 109,281 | — | 42,073 | 67,208 | |||||||||||
Corporate notes | 65,203 | — | 65,203 | — | |||||||||||
Mortgage-backed | 1,301,111 | — | 1,301,111 | — | |||||||||||
Equity securities | 50,782 | — | 50,782 | — | |||||||||||
Trading account securities | 1,092 | — | 1,092 | — | |||||||||||
Mortgage loans held-for-sale | 559,634 | — | 559,634 | — | |||||||||||
MSRs | 13,901 | — | — | 13,901 | |||||||||||
Nonqualified deferred compensation assets | 9,218 | — | 9,218 | — | |||||||||||
Derivative assets | 88,828 | — | 88,828 | — | |||||||||||
Total | $ | 2,322,769 | $ | — | $ | 2,241,660 | $ | 81,109 | |||||||
Derivative liabilities | $ | 87,948 | $ | — | $ | 87,948 | $ | — |
December 31, 2015 | ||||||||||||||||
(Dollars in thousands) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
Available-for-sale securities | ||||||||||||||||
U.S. Treasury | $ | 306,729 | $ | — | $ | 306,729 | $ | — | ||||||||
U.S. Government agencies | 70,236 | — | 70,236 | — | ||||||||||||
Municipal | 108,595 | — | 39,982 | 68,613 | ||||||||||||
Corporate notes | 81,545 | — | 81,545 | — | ||||||||||||
Mortgage-backed | 1,092,597 | — | 1,092,597 | — | ||||||||||||
Equity securities | 56,686 | — | 31,487 | 25,199 | ||||||||||||
Trading account securities | 448 | — | 448 | — | ||||||||||||
Mortgage loans held-for-sale | 388,038 | — | 388,038 | — | ||||||||||||
MSRs | 9,092 | — | — | 9,092 | ||||||||||||
Nonqualified deferred compensation assets | 8,517 | — | 8,517 | — | ||||||||||||
Derivative assets | 51,298 | — | 51,298 | — | ||||||||||||
Total | $ | 2,173,781 | $ | — | $ | 2,070,877 | $ | 102,904 | ||||||||
Derivative liabilities | $ | 45,019 | $ | — | $ | 45,019 | $ | — |
September 30, 2015 | |||||||||||||||
(Dollars in thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||
Available-for-sale securities | |||||||||||||||
U.S. Treasury | $ | 285,922 | $ | — | $ | 285,922 | $ | — | |||||||
U.S. Government agencies | 645,023 | — | 645,023 | — | |||||||||||
Municipal | 297,342 | — | 228,941 | 68,401 | |||||||||||
Corporate notes | 116,945 | — | 116,945 | — | |||||||||||
Mortgage-backed | 815,045 | — | 815,045 | — | |||||||||||
Equity securities | 54,004 | — | 29,488 | 24,516 | |||||||||||
Trading account securities | 3,312 | — | 3,312 | — | |||||||||||
Mortgage loans held-for-sale | 347,005 | — | 347,005 | — | |||||||||||
MSRs | 7,875 | — | — | 7,875 | |||||||||||
Nonqualified deferred compensation assets | 8,342 | — | 8,342 | — | |||||||||||
Derivative assets | 69,034 | — | 69,034 | — | |||||||||||
Total | $ | 2,649,849 | $ | — | $ | 2,549,057 | $ | 100,792 | |||||||
Derivative liabilities | $ | 65,198 | $ | — | $ | 65,198 | $ | — |
Equity securities | Mortgage servicing rights | ||||||||||
(Dollars in thousands) | Municipal | ||||||||||
Balance at July 1, 2016 | $ | 69,812 | $ | 25,187 | $ | 13,382 | |||||
Total net gains (losses) included in: | |||||||||||
Net income (1) | — | — | 519 | ||||||||
Other comprehensive loss | (241 | ) | — | — | |||||||
Purchases | 2,184 | — | — | ||||||||
Issuances | — | — | — | ||||||||
Sales | — | (25,187 | ) | — | |||||||
Settlements | (4,547 | ) | — | — | |||||||
Net transfers into/(out of) Level 3 | — | — | — | ||||||||
Balance at September 30, 2016 | $ | 67,208 | $ | — | $ | 13,901 |
Equity securities | Mortgage servicing rights | ||||||||||
(Dollars in thousands) | Municipal | ||||||||||
Balance at January 1, 2016 | $ | 68,613 | $ | 25,199 | $ | 9,092 | |||||
Total net gains (losses) included in: | |||||||||||
Net income (1) | — | — | 4,809 | ||||||||
Other comprehensive loss | (141 | ) | (12 | ) | — | ||||||
Purchases | 6,458 | — | — | ||||||||
Issuances | — | — | — | ||||||||
Sales | — | (25,187 | ) | — | |||||||
Settlements | (7,722 | ) | — | — | |||||||
Net transfers into/(out of) Level 3 | — | — | — | ||||||||
Balance at September 30, 2016 | $ | 67,208 | $ | — | $ | 13,901 |
Equity securities | Mortgage servicing rights | ||||||||||
(Dollars in thousands) | Municipal | ||||||||||
Balance at July 1, 2015 | $ | 58,572 | $ | 24,996 | $ | 8,034 | |||||
Total net (losses) gains included in: | |||||||||||
Net income (1) | — | — | (159 | ) | |||||||
Other comprehensive income (loss) | 223 | (480 | ) | — | |||||||
Purchases | 10,405 | — | — | ||||||||
Issuances | — | — | — | ||||||||
Sales | — | — | — | ||||||||
Settlements | (799 | ) | — | — | |||||||
Net transfers into/(out of) Level 3 | — | — | — | ||||||||
Balance at September 30, 2015 | $ | 68,401 | $ | 24,516 | $ | 7,875 |
(1) | Changes in the balance of MSRs are recorded as a component of mortgage banking revenue in non-interest income. |
Equity securities | Mortgage servicing rights | ||||||||||
(Dollars in thousands) | Municipal | ||||||||||
Balance at January 1, 2015 | $ | 58,953 | $ | 23,711 | $ | 8,435 | |||||
Total net (losses) gains included in: | |||||||||||
Net income (1) | — | — | (560 | ) | |||||||
Other comprehensive (loss) income | (287 | ) | 805 | — | |||||||
Purchases | 21,254 | — | — | ||||||||
Issuances | — | — | — | ||||||||
Sales | — | — | — | ||||||||
Settlements | (11,519 | ) | — | — | |||||||
Net transfers into/(out of) Level 3 | — | — | — | ||||||||
Balance at September 30, 2015 | $ | 68,401 | $ | 24,516 | $ | 7,875 |
(1) | Changes in the balance of MSRs are recorded as a component of mortgage banking revenue in non-interest income. |
September 30, 2016 | Three Months Ended September 30, 2016 Fair Value Losses Recognized, net | Nine Months Ended September 30, 2016 Fair Value Losses Recognized, net | |||||||||||||||||||||
(Dollars in thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Impaired loans—collateral based | $ | 64,614 | $ | — | $ | — | $ | 64,614 | $ | 4,635 | $ | 10,865 | |||||||||||
Other real estate owned, including covered other real estate owned (1) | 45,449 | — | — | 45,449 | 1,237 | 4,617 | |||||||||||||||||
Total | $ | 110,063 | $ | — | $ | — | $ | 110,063 | $ | 5,872 | $ | 15,482 |
(1) | Fair value losses recognized, net on other real estate owned include valuation adjustments and charge-offs during the respective period. |
(Dollars in thousands) | Fair Value | Valuation Methodology | Significant Unobservable Input | Range of Inputs | Weighted Average of Inputs | Impact to valuation from an increased or higher input value | |||||||
Measured at fair value on a recurring basis: | |||||||||||||
Municipal Securities | $ | 67,208 | Bond pricing | Equivalent rating | BBB-AA+ | N/A | Increase | ||||||
MSRs | 13,901 | Discounted cash flows | Discount rate | 3%-7% | 5.52% | Decrease | |||||||
Constant prepayment rate (CPR) | 2%-85% | 14.73% | Decrease | ||||||||||
Measured at fair value on a non-recurring basis: | |||||||||||||
Impaired loans—collateral based | $ | 64,614 | Appraisal value | Appraisal adjustment - cost of sale | 10% | 10.00% | Decrease | ||||||
Other real estate owned, including covered other real estate owned | 45,449 | Appraisal value | Appraisal adjustment - cost of sale | 10% | 10.00% | Decrease |
At September 30, 2016 | At December 31, 2015 | At September 30, 2015 | |||||||||||||||||||||
Carrying | Fair | Carrying | Fair | Carrying | Fair | ||||||||||||||||||
(Dollars in thousands) | Value | Value | Value | Value | Value | Value | |||||||||||||||||
Financial Assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | 246,947 | $ | 246,947 | $ | 275,795 | $ | 275,795 | $ | 250,655 | $ | 250,655 | |||||||||||
Interest bearing deposits with banks | 816,104 | 816,104 | 607,782 | 607,782 | 701,106 | 701,106 | |||||||||||||||||
Available-for-sale securities | 1,650,096 | 1,650,096 | 1,716,388 | 1,716,388 | 2,214,281 | 2,214,281 | |||||||||||||||||
Held-to-maturity securities | 932,767 | 942,666 | 884,826 | 878,111 | — | — | |||||||||||||||||
Trading account securities | 1,092 | 1,092 | 448 | 448 | 3,312 | 3,312 | |||||||||||||||||
FHLB and FRB stock, at cost | 129,630 | 129,630 | 101,581 | 101,581 | 90,308 | 90,308 | |||||||||||||||||
Brokerage customer receivables | 25,511 | 25,511 | 27,631 | 27,631 | 28,293 | 28,293 | |||||||||||||||||
Mortgage loans held-for-sale, at fair value | 559,634 | 559,634 | 388,038 | 388,038 | 347,005 | 347,005 | |||||||||||||||||
Total loans | 19,197,201 | 20,251,518 | 17,266,790 | 18,106,829 | 16,484,820 | 17,284,375 | |||||||||||||||||
MSRs | 13,901 | 13,901 | 9,092 | 9,092 | 7,875 | 7,875 | |||||||||||||||||
Nonqualified deferred compensation assets | 9,218 | 9,218 | 8,517 | 8,517 | 8,342 | 8,342 | |||||||||||||||||
Derivative assets | 88,828 | 88,828 | 51,298 | 51,298 | 69,034 | 69,034 | |||||||||||||||||
Accrued interest receivable and other | 205,725 | 205,725 | 193,092 | 193,092 | 192,572 | 192,572 | |||||||||||||||||
Total financial assets | $ | 23,876,654 | $ | 24,940,870 | $ | 21,531,278 | $ | 22,364,602 | $ | 20,397,603 | $ | 21,197,158 | |||||||||||
Financial Liabilities | |||||||||||||||||||||||
Non-maturity deposits | $ | 16,946,178 | $ | 16,946,178 | $ | 14,634,957 | $ | 14,634,957 | $ | 14,092,697 | $ | 14,092,697 | |||||||||||
Deposits with stated maturities | 4,201,477 | 4,200,278 | 4,004,677 | 3,998,180 | 4,135,772 | 4,137,856 | |||||||||||||||||
FHLB advances | 419,632 | 427,103 | 853,431 | 863,437 | 451,330 | 459,154 | |||||||||||||||||
Other borrowings | 241,366 | 241,366 | 265,785 | 265,785 | 259,978 | 259,978 | |||||||||||||||||
Subordinated notes | 138,943 | 138,715 | 138,861 | 140,302 | 138,834 | 142,953 | |||||||||||||||||
Junior subordinated debentures | 253,566 | 254,108 | 268,566 | 268,046 | 268,566 | 268,058 | |||||||||||||||||
Derivative liabilities | 87,948 | 87,948 | 45,019 | 45,019 | 65,198 | 65,198 | |||||||||||||||||
FDIC indemnification liability | 17,945 | 17,945 | 6,100 | 6,100 | 3,033 | 3,033 | |||||||||||||||||
Accrued interest payable | 8,007 | 8,007 | 7,394 | 7,394 | 11,364 | 11,364 | |||||||||||||||||
Total financial liabilities | $ | 22,315,062 | $ | 22,321,648 | $ | 20,224,790 | $ | 20,229,220 | $ | 19,426,772 | $ | 19,440,291 |
Nine Months Ended | |||||
September 30, | September 30, | ||||
2016 | 2015 | ||||
Expected dividend yield | 0.9 | % | 0.9 | % | |
Expected volatility | 25.2 | % | 26.5 | % | |
Risk-free rate | 1.3 | % | 1.3 | % | |
Expected option life (in years) | 4.5 | 4.5 |
Stock Options | Common Shares | Weighted Average Strike Price | Remaining Contractual Term (1) | Intrinsic Value (2) ($000) | ||||||||
Outstanding at January 1, 2016 | 1,551,734 | $ | 41.32 | |||||||||
Granted | 562,166 | 41.04 | ||||||||||
Exercised | (184,366 | ) | 37.43 | |||||||||
Forfeited or canceled | (86,039 | ) | 48.93 | |||||||||
Outstanding at September 30, 2016 | 1,843,495 | $ | 41.27 | 4.8 | $ | 26,363 | ||||||
Exercisable at September 30, 2016 | 813,666 | $ | 39.27 | 3.5 | $ | 13,265 |
Stock Options | Common Shares | Weighted Average Strike Price | Remaining Contractual Term (1) | Intrinsic Value (2) ($000) | ||||||||
Outstanding at January 1, 2015 | 1,618,426 | $ | 43.00 | |||||||||
Conversion of options of acquired company | 16,364 | 21.18 | ||||||||||
Granted | 502,517 | 44.36 | ||||||||||
Exercised | (258,836 | ) | 43.14 | |||||||||
Forfeited or canceled | (277,150 | ) | 53.64 | |||||||||
Outstanding at September 30, 2015 | 1,601,321 | $ | 41.34 | 4.7 | $ | 19,738 | ||||||
Exercisable at September 30, 2015 | 715,101 | $ | 37.52 | 3.2 | $ | 11,376 |
(1) | Represents the remaining weighted average contractual life in years. |
(2) | Aggregate intrinsic value represents the total pre-tax intrinsic value (i.e., the difference between the Company's stock price on the last trading day of the quarter and the option exercise price, multiplied by the number of shares) that would have been received by the option holders if they had exercised their options on the last day of the quarter. Options with exercise prices above the stock price on the last trading day of the quarter are excluded from the calculation of intrinsic value. The intrinsic value will change based on the fair market value of the Company's stock. |
Nine months ended September 30, 2016 | Nine months ended September 30, 2015 | ||||||||||||
Restricted Shares | Common Shares | Weighted Average Grant-Date Fair Value | Common Shares | Weighted Average Grant-Date Fair Value | |||||||||
Outstanding at January 1 | 137,593 | $ | 49.63 | 146,112 | $ | 47.45 | |||||||
Granted | 15,764 | 44.72 | 15,657 | 45.81 | |||||||||
Vested and issued | (10,041 | ) | 43.78 | (20,409 | ) | 39.07 | |||||||
Forfeited or canceled | (598 | ) | 44.26 | (2,400 | ) | 36.81 | |||||||
Outstanding at September 30 | 142,718 | $ | 49.52 | 138,960 | $ | 48.68 | |||||||
Vested, but not issuable at September 30 | 88,889 | $ | 51.44 | 85,000 | $ | 51.88 |
Nine months ended September 30, 2016 | Nine months ended September 30, 2015 | ||||||||||||
Performance-based Stock | Common Shares | Weighted Average Grant-Date Fair Value | Common Shares | Weighted Average Grant-Date Fair Value | |||||||||
Outstanding at January 1 | 276,533 | $ | 43.01 | 295,679 | $ | 38.18 | |||||||
Granted | 118,072 | 41.02 | 106,017 | 44.35 | |||||||||
Vested and issued | (78,410 | ) | 37.90 | (78,590 | ) | 31.10 | |||||||
Forfeited | (13,229 | ) | 41.12 | (33,854 | ) | 32.74 | |||||||
Outstanding at September 30 | 302,966 | $ | 43.64 | 289,252 | $ | 43.00 | |||||||
Vested, but deferred at September 30 | 6,660 | $ | 37.93 | — | $ | — |
Accumulated Unrealized Gains (Losses) on Securities | Accumulated Unrealized Losses on Derivative Instruments | Accumulated Foreign Currency Translation Adjustments | Total Accumulated Other Comprehensive Loss | ||||||||||||
Balance at July 1, 2016 | $ | 3,971 | $ | (2,220 | ) | $ | (36,191 | ) | $ | (34,440 | ) | ||||
Other comprehensive income (loss) during the period, net of tax, before reclassifications | 1,532 | 1,037 | (1,644 | ) | 925 | ||||||||||
Amount reclassified from accumulated other comprehensive income (loss) into net income, net of tax | (2,005 | ) | 646 | — | (1,359 | ) | |||||||||
Amount reclassified from accumulated other comprehensive income (loss) related to amortization of unrealized losses on investment securities transferred to held-to-maturity from available-for-sale, net of tax | 2,295 | — | — | 2,295 | |||||||||||
Net other comprehensive income (loss) during the period, net of tax | $ | 1,822 | $ | 1,683 | $ | (1,644 | ) | $ | 1,861 | ||||||
Balance at September 30, 2016 | $ | 5,793 | $ | (537 | ) | $ | (37,835 | ) | $ | (32,579 | ) | ||||
Balance at January 1, 2016 | $ | (17,674 | ) | $ | (2,193 | ) | $ | (42,841 | ) | $ | (62,708 | ) | |||
Other comprehensive income during the period, net of tax, before reclassifications | 20,444 | 66 | 5,006 | 25,516 | |||||||||||
Amount reclassified from accumulated other comprehensive income (loss) into net income, net of tax | (3,684 | ) | 1,590 | — | (2,094 | ) | |||||||||
Amount reclassified from accumulated other comprehensive income (loss) related to amortization of unrealized losses on investment securities transferred to held-to-maturity from available-for-sale, net of tax | $ | 6,707 | $ | — | $ | — | $ | 6,707 | |||||||
Net other comprehensive income during the period, net of tax | $ | 23,467 | $ | 1,656 | $ | 5,006 | $ | 30,129 | |||||||
Balance at September 30, 2016 | $ | 5,793 | $ | (537 | ) | $ | (37,835 | ) | $ | (32,579 | ) | ||||
Balance at July 1, 2015 | $ | (26,333 | ) | $ | (2,727 | ) | $ | (32,811 | ) | $ | (61,871 | ) | |||
Other comprehensive income (loss) during the period, net of tax, before reclassifications | 18,995 | (287 | ) | (6,337 | ) | 12,371 | |||||||||
Amount reclassified from accumulated other comprehensive (loss) income into net income, net of tax | 60 | 347 | — | 407 | |||||||||||
Amount reclassified from accumulated other comprehensive (loss) income related to amortization of unrealized losses on investment securities transferred to held-to-maturity from available-for-sale, net of tax | — | — | — | — | |||||||||||
Net other comprehensive income (loss) during the period, net of tax | $ | 19,055 | $ | 60 | $ | (6,337 | ) | $ | 12,778 | ||||||
Balance at September 30, 2015 | $ | (7,278 | ) | $ | (2,667 | ) | $ | (39,148 | ) | $ | (49,093 | ) | |||
Accumulated Unrealized Gains (Losses) on Securities | Accumulated Unrealized Losses on Derivative Instruments | Accumulated Foreign Currency Translation Adjustments | Total Accumulated Other Comprehensive Loss | ||||||||||||
Balance at January 1, 2015 | $ | (9,533 | ) | $ | (2,517 | ) | $ | (25,282 | ) | $ | (37,332 | ) | |||
Other comprehensive income (loss) during the period, net of tax, before reclassifications | 2,499 | (1,027 | ) | (13,866 | ) | (12,394 | ) | ||||||||
Amount reclassified from accumulated other comprehensive loss into net income, net of tax | (244 | ) | 877 | — | 633 | ||||||||||
Amount reclassified from accumulated other comprehensive loss related to amortization of unrealized losses on investment securities transferred to held-to-maturity from available-for-sale, net of tax | — | — | — | — | |||||||||||
Net other comprehensive income (loss) during the period, net of tax | $ | 2,255 | $ | (150 | ) | $ | (13,866 | ) | $ | (11,761 | ) | ||||
Balance at September 30, 2015 | $ | (7,278 | ) | $ | (2,667 | ) | $ | (39,148 | ) | $ | (49,093 | ) |
Amount Reclassified from Accumulated Other Comprehensive Income for the | ||||||||||||||||||
Details Regarding the Component of Accumulated Other Comprehensive Income | Three Months Ended | Nine Months Ended | Impacted Line on the Consolidated Statements of Income | |||||||||||||||
September 30, | September 30, | |||||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||||
Accumulated unrealized losses on securities | ||||||||||||||||||
Gains (losses) included in net income | $ | 3,305 | $ | (98 | ) | $ | 6,070 | $ | 402 | Gains (losses) on investment securities, net | ||||||||
3,305 | (98 | ) | 6,070 | 402 | Income before taxes | |||||||||||||
Tax effect | $ | (1,300 | ) | $ | 38 | $ | (2,386 | ) | $ | (158 | ) | Income tax expense | ||||||
Net of tax | $ | 2,005 | $ | (60 | ) | $ | 3,684 | $ | 244 | Net income | ||||||||
Accumulated unrealized losses on derivative instruments | ||||||||||||||||||
Amount reclassified to interest expense on deposits | $ | 528 | $ | 92 | $ | 1,121 | $ | 92 | Interest on deposits | |||||||||
Amount reclassified to interest expense on junior subordinated debentures | 537 | 479 | $ | 1,499 | $ | 1,350 | Interest on junior subordinated debentures | |||||||||||
(1,065 | ) | (571 | ) | (2,620 | ) | (1,442 | ) | Income before taxes | ||||||||||
Tax effect | $ | 419 | $ | 224 | $ | 1,030 | $ | 565 | Income tax expense | |||||||||
Net of tax | $ | (646 | ) | $ | (347 | ) | $ | (1,590 | ) | $ | (877 | ) | Net income |
Three Months Ended | Nine Months Ended | ||||||||||||||||
(In thousands, except per share data) | September 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | |||||||||||||
Net income | $ | 53,115 | $ | 38,355 | $ | 152,267 | $ | 121,238 | |||||||||
Less: Preferred stock dividends and discount accretion | 3,628 | 4,079 | 10,884 | 7,240 | |||||||||||||
Net income applicable to common shares—Basic | (A) | 49,487 | 34,276 | 141,383 | 113,998 | ||||||||||||
Add: Dividends on convertible preferred stock, if dilutive | 1,578 | 1,579 | 4,735 | 4,740 | |||||||||||||
Net income applicable to common shares—Diluted | (B) | 51,065 | 35,855 | 146,118 | 118,738 | ||||||||||||
Weighted average common shares outstanding | (C) | 51,679 | 48,158 | 49,763 | 47,658 | ||||||||||||
Effect of dilutive potential common shares | |||||||||||||||||
Common stock equivalents | 938 | 978 | 822 | 1,070 | |||||||||||||
Convertible preferred stock, if dilutive | 3,109 | 3,071 | 3,109 | 3,071 | |||||||||||||
Total dilutive potential common shares | 4,047 | 4,049 | 3,931 | 4,141 | |||||||||||||
Weighted average common shares and effect of dilutive potential common shares | (D) | 55,726 | 52,207 | 53,694 | 51,799 | ||||||||||||
Net income per common share: | |||||||||||||||||
Basic | (A/C) | $ | 0.96 | $ | 0.71 | $ | 2.84 | $ | 2.39 | ||||||||
Diluted | (B/D) | $ | 0.92 | $ | 0.69 | $ | 2.72 | $ | 2.29 |
Three months ended | ||||||||||
(Dollars in thousands, except per share data) | September 30, 2016 | September 30, 2015 | Percentage (%) or Basis Point (bp) Change | |||||||
Net income | $ | 53,115 | $ | 38,355 | 38 | % | ||||
Net income per common share—Diluted | 0.92 | 0.69 | 33 | |||||||
Net revenue (1) | 271,240 | 230,493 | 18 | |||||||
Net interest income | 184,636 | 165,540 | 12 | |||||||
Net interest margin | 3.21 | % | 3.31 | % | (10) bp | |||||
Net interest margin - fully taxable equivalent (non-GAAP) (2) | 3.24 | % | 3.33 | % | (9) bp | |||||
Net overhead ratio (3) | 1.44 | % | 1.74 | % | (30) bp | |||||
Return on average assets | 0.85 | 0.70 | 15 | |||||||
Return on average common equity | 8.20 | 6.60 | 160 | |||||||
Return on average tangible common equity (2) | 10.55 | 8.88 | 167 |
Nine months ended | ||||||||||
(Dollars in thousands, except per share data) | September 30, 2016 | September 30, 2015 | Percentage (%) or Basis Point (bp) Change | |||||||
Net income | $ | 152,267 | $ | 121,238 | 26 | % | ||||
Net income per common share—Diluted | 2.72 | 2.29 | 19 | |||||||
Net revenue (1) | 771,570 | 680,830 | 13 | |||||||
Net interest income | 531,415 | 474,323 | 12 | |||||||
Net interest margin | 3.25 | % | 3.36 | % | (11) bp | |||||
Net interest margin - fully taxable equivalent (non-GAAP) (2) | 3.27 | % | 3.39 | % | (12) bp | |||||
Net overhead ratio (3) | 1.46 | 1.66 | (20) bp | |||||||
Return on average assets | 0.85 | 0.79 | 6 | |||||||
Return on average common equity | 8.39 | 7.53 | 86 | |||||||
Return on average tangible common equity (2) | 10.98 | 9.90 | 108 | |||||||
At end of period | ||||||||||
Total assets | $ | 25,321,759 | $ | 22,035,216 | 15 | % | ||||
Total loans, excluding loans held-for-sale, excluding covered loans | 19,101,261 | 16,316,211 | 17 | |||||||
Total loans, including loans held-for-sale, excluding covered loans | 19,660,895 | 16,663,216 | 18 | |||||||
Total deposits | 21,147,655 | 18,228,469 | 16 | |||||||
Total shareholders’ equity | 2,674,474 | 2,335,736 | 15 | |||||||
Book value per common share (2) | $ | 46.86 | $ | 43.12 | 9 | |||||
Tangible common book value per share (2) | 37.06 | 32.83 | 13 | |||||||
Market price per common share | 55.57 | 53.43 | 4 | |||||||
Excluding covered loans: | ||||||||||
Allowance for credit losses to total loans (4) | 0.62 | % | 0.64 | % | (2) bp | |||||
Non-performing loans to total loans | 0.44 | % | 0.53 | % | (9 | ) |
(1) | Net revenue is net interest income plus non-interest income. |
(2) | See following section titled, “Supplementary Financial Measures/Ratios” for additional information on this performance measure/ratio. |
(3) | The net overhead ratio is calculated by netting total non-interest expense and total non-interest income, annualizing this amount, and dividing by that period’s total average assets. A lower ratio indicates a higher degree of efficiency. |
(4) | The allowance for credit losses includes both the allowance for loan losses and the allowance for lending-related commitments. |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||
(Dollars and shares in thousands) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Calculation of Net Interest Margin and Efficiency Ratio | |||||||||||||||
(A) Interest Income (GAAP) | $ | 208,149 | $ | 185,379 | $ | 597,444 | $ | 530,977 | |||||||
Taxable-equivalent adjustment: | |||||||||||||||
- Loans | 584 | 346 | 1,616 | 1,001 | |||||||||||
- Liquidity Management Assets | 963 | 841 | 2,815 | 2,355 | |||||||||||
- Other Earning Assets | 9 | 10 | 23 | 44 | |||||||||||
(B) Interest Income - FTE | $ | 209,705 | $ | 186,576 | $ | 601,898 | $ | 534,377 | |||||||
(C) Interest Expense (GAAP) | 23,513 | 19,839 | 66,029 | 56,654 | |||||||||||
(D) Net Interest Income - FTE (B minus C) | $ | 186,192 | $ | 166,737 | $ | 535,869 | $ | 477,723 | |||||||
(E) Net Interest Income (GAAP) (A minus C) | $ | 184,636 | $ | 165,540 | $ | 531,415 | $ | 474,323 | |||||||
Net interest margin (GAAP-derived) | 3.21 | % | 3.31 | % | 3.25 | % | 3.36 | % | |||||||
Net interest margin - FTE | 3.24 | % | 3.33 | % | 3.27 | % | 3.39 | % | |||||||
(F) Non-interest income | $ | 86,604 | $ | 64,953 | $ | 240,155 | $ | 206,507 | |||||||
(G) Gains (losses) on investment securities, net | 3,305 | (98 | ) | 6,070 | 402 | ||||||||||
(H) Non-interest expense | 176,615 | 159,974 | 501,314 | 461,589 | |||||||||||
Efficiency ratio (H/(E+F-G)) | 65.92 | % | 69.38 | % | 65.49 | % | 67.84 | % | |||||||
Efficiency ratio - FTE (H/(D+F-G)) | 65.54 | % | 69.02 | % | 65.11 | % | 67.50 | % | |||||||
Calculation of Tangible Common Equity ratio (at period end) | |||||||||||||||
Total shareholders’ equity | $ | 2,674,474 | $ | 2,335,736 | |||||||||||
(I) Less: Convertible preferred stock | (126,257 | ) | (126,312 | ) | |||||||||||
Less: Non-convertible preferred stock | (125,000 | ) | (125,000 | ) | |||||||||||
Less: Intangible assets | (506,674 | ) | (497,699 | ) | |||||||||||
(J) Total tangible common shareholders’ equity | $ | 1,916,543 | $ | 1,586,725 | |||||||||||
Total assets | $ | 25,321,759 | $ | 22,035,216 | |||||||||||
Less: Intangible assets | (506,674 | ) | (497,699 | ) | |||||||||||
(K) Total tangible assets | $ | 24,815,085 | $ | 21,537,517 | |||||||||||
Tangible common equity ratio (J/K) | 7.7 | % | 7.4 | % | |||||||||||
Tangible common equity ratio, assuming full conversion of convertible preferred stock ((J-I)/K) | 8.2 | % | 8.0 | % | |||||||||||
Calculation of book value per share | |||||||||||||||
Total shareholders’ equity | $ | 2,674,474 | $ | 2,335,736 | |||||||||||
Less: Preferred stock | (251,257 | ) | (251,312 | ) | |||||||||||
(L) Total common equity | $ | 2,423,217 | $ | 2,084,424 | |||||||||||
(M) Actual common shares outstanding | 51,715 | 48,337 | |||||||||||||
Book value per common share (L/M) | $ | 46.86 | $ | 43.12 | |||||||||||
Tangible common book value per share (J/M) | $ | 37.06 | $ | 32.83 |
Calculation of return on average common equity | |||||||||||
(N) Net income applicable to common shares | 49,487 | 34,276 | 141,383 | 113,998 | |||||||
Add: After-tax intangible asset amortization | 677 | 833 | 2,270 | 2,046 | |||||||
(O) Tangible net income applicable to common shares | 50,164 | 35,109 | 143,653 | 116,044 | |||||||
Total average shareholders' equity | 2,651,684 | 2,310,511 | 2,502,940 | 2,194,384 | |||||||
Less: Average preferred stock | (251,257 | ) | (251,312 | ) | (251,259 | ) | (171,238 | ) | |||
(P) Total average common shareholders' equity | 2,400,427 | 2,059,199 | 2,251,681 | 2,023,146 | |||||||
Less: Average intangible assets | (508,812 | ) | (490,583 | ) | (503,966 | ) | (455,787 | ) | |||
(Q) Total average tangible common shareholders’ equity | 1,891,615 | 1,568,616 | 1,747,715 | 1,567,359 | |||||||
Return on average common equity, annualized (N/P) | 8.20 | % | 6.60 | % | 8.39 | % | 7.53 | % | |||
Return on average tangible common equity, annualized (O/Q) | 10.55 | % | 8.88 | % | 10.98 | % | 9.90 | % |
Average Balance for three months ended, | Interest for three months ended, | Yield/Rate for three months ended, | ||||||||||||||||||||||||||||||
(Dollars in thousands) | September 30, 2016 | June 30, 2016 | September 30, 2015 | September 30, 2016 | June 30, 2016 | September 30, 2015 | September 30, 2016 | June 30, 2016 | September 30, 2015 | |||||||||||||||||||||||
Liquidity management assets(1) (2)(7) | $ | 3,671,577 | $ | 3,413,113 | $ | 3,140,782 | $ | 18,710 | $ | 19,236 | $ | 18,165 | 2.03 | % | 2.27 | % | 2.29 | % | ||||||||||||||
Other earning assets(2)(3)(7) | 29,875 | 29,759 | 30,990 | 222 | 238 | 234 | 2.96 | 3.21 | 3.00 | |||||||||||||||||||||||
Loans, net of unearned income(2)(4)(7) | 19,071,621 | 18,204,552 | 16,509,001 | 189,637 | 177,571 | 165,572 | 3.96 | 3.92 | 3.98 | |||||||||||||||||||||||
Covered loans | 101,570 | 109,533 | 174,768 | 1,136 | 1,482 | 2,605 | 4.45 | 5.44 | 5.91 | |||||||||||||||||||||||
Total earning assets(7) | $ | 22,874,643 | $ | 21,756,957 | $ | 19,855,541 | $ | 209,705 | $ | 198,527 | $ | 186,576 | 3.65 | % | 3.67 | % | 3.73 | % | ||||||||||||||
Allowance for loan and covered loan losses | (121,156 | ) | (116,984 | ) | (106,091 | ) | ||||||||||||||||||||||||||
Cash and due from banks | 240,239 | 272,935 | 251,289 | |||||||||||||||||||||||||||||
Other assets | 1,885,526 | 1,841,847 | 1,678,323 | |||||||||||||||||||||||||||||
Total assets | $ | 24,879,252 | $ | 23,754,755 | $ | 21,679,062 | ||||||||||||||||||||||||||
Interest-bearing deposits | $ | 15,117,102 | $ | 14,065,995 | $ | 13,489,651 | $ | 15,621 | $ | 13,594 | $ | 12,436 | 0.41 | % | 0.39 | % | 0.37 | % | ||||||||||||||
FHLB advances | 459,198 | 946,081 | 394,666 | 2,577 | 2,984 | 2,458 | 2.23 | 1.27 | 2.47 | |||||||||||||||||||||||
Other borrowings | 249,307 | 248,233 | 272,549 | 1,137 | 1,086 | 1,045 | 1.81 | 1.76 | 1.52 | |||||||||||||||||||||||
Subordinated notes | 138,925 | 138,898 | 138,825 | 1,778 | 1,777 | 1,776 | 5.12 | 5.12 | 5.12 | |||||||||||||||||||||||
Junior subordinated notes | 253,566 | 253,566 | 264,974 | 2,400 | 2,353 | 2,124 | 3.70 | 3.67 | 3.14 | |||||||||||||||||||||||
Total interest-bearing liabilities | $ | 16,218,098 | $ | 15,652,773 | $ | 14,560,665 | $ | 23,513 | $ | 21,794 | $ | 19,839 | 0.58 | % | 0.56 | % | 0.54 | % | ||||||||||||||
Non-interest bearing deposits | 5,566,983 | 5,223,384 | 4,473,632 | |||||||||||||||||||||||||||||
Other liabilities | 442,487 | 412,866 | 334,254 | |||||||||||||||||||||||||||||
Equity | 2,651,684 | 2,465,732 | 2,310,511 | |||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 24,879,252 | $ | 23,754,755 | $ | 21,679,062 | ||||||||||||||||||||||||||
Interest rate spread(5)(7) | 3.07 | % | 3.11 | % | 3.19 | % | ||||||||||||||||||||||||||
Less: Fully tax-equivalent adjustment | (1,556 | ) | (1,463 | ) | (1,197 | ) | (0.03 | ) | (0.03 | ) | (0.02 | ) | ||||||||||||||||||||
Net free funds/contribution(6) | $ | 6,656,545 | $ | 6,104,184 | $ | 5,294,876 | 0.17 | 0.16 | 0.14 | |||||||||||||||||||||||
Net interest income/ margin(7) (GAAP) | $ | 184,636 | $ | 175,270 | $ | 165,540 | 3.21 | % | 3.24 | % | 3.31 | % | ||||||||||||||||||||
Fully tax-equivalent adjustment | 1,556 | $ | 1,463 | $ | 1,197 | 0.03 | 0.03 | 0.02 | ||||||||||||||||||||||||
Net interest income/ margin - FTE (7) | $ | 186,192 | $ | 176,733 | $ | 166,737 | 3.24 | % | 3.27 | % | 3.33 | % |
(1) | Liquidity management assets include available-for-sale and held-to-maturity securities, interest earning deposits with banks, federal funds sold and securities purchased under resale agreements. |
(2) | Interest income on tax-advantaged loans, trading securities and securities reflects a tax-equivalent adjustment based on a marginal federal corporate tax rate of 35%. The total adjustments for the three months ended September 30, 2016, June 30, 2016 and September 30, 2015 were $1.6 million, $1.5 million and $1.2 million respectively. |
(3) | Other earning assets include brokerage customer receivables and trading account securities. |
(4) | Loans, net of unearned income, include loans held-for-sale and non-accrual loans. |
(5) | Interest rate spread is the difference between the yield earned on earning assets and the rate paid on interest-bearing liabilities. |
(6) | Net free funds are the difference between total average earning assets and total average interest-bearing liabilities. The estimated contribution to net interest margin from net free funds is calculated using the rate paid for total interest-bearing liabilities. |
(7) | See “Supplemental Financial Measures/Ratios” for additional information on this performance ratio. |
Average Balance for nine months ended, | Interest for nine months ended, | Yield/Rate for nine months ended, | |||||||||||||||||||
(Dollars in thousands) | September 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | |||||||||||||||
Liquidity management assets(1)(2)(7) | $ | 3,462,375 | $ | 2,907,284 | $ | 57,740 | $ | 50,328 | 2.23 | % | 2.31 | % | |||||||||
Other earning assets(2)(3)(7) | 29,457 | 30,286 | 696 | 718 | 3.16 | 3.17 | |||||||||||||||
Loans, net of unearned income(2)(4)(7) | 18,264,545 | 15,730,009 | 538,833 | 473,857 | 3.94 | 4.03 | |||||||||||||||
Covered loans | 117,427 | 197,069 | 4,629 | 9,474 | 5.27 | 6.43 | |||||||||||||||
Total earning assets(7) | $ | 21,873,804 | $ | 18,864,648 | $ | 601,898 | $ | 534,377 | 3.68 | % | 3.79 | % | |||||||||
Allowance for loan and covered loan losses | (116,739 | ) | (101,440 | ) | |||||||||||||||||
Cash and due from banks | 257,443 | 245,745 | |||||||||||||||||||
Other assets | 1,834,904 | 1,577,971 | |||||||||||||||||||
Total assets | $ | 23,849,412 | $ | 20,586,924 | |||||||||||||||||
Interest-bearing deposits | $ | 14,303,125 | $ | 13,158,498 | $ | 41,996 | $ | 36,246 | 0.39 | % | 0.37 | % | |||||||||
FHLB advances | 742,423 | 360,470 | 8,447 | 6,426 | 1.52 | 2.38 | |||||||||||||||
Other borrowings | 251,633 | 220,478 | 3,281 | 2,620 | 1.74 | 1.59 | |||||||||||||||
Subordinated notes | 138,898 | 138,799 | 5,332 | 5,328 | 5.12 | 5.12 | |||||||||||||||
Junior subordinated notes | 254,935 | 254,710 | 6,973 | 6,034 | 3.59 | 3.12 | |||||||||||||||
Total interest-bearing liabilities | $ | 15,691,014 | $ | 14,132,955 | $ | 66,029 | $ | 56,654 | 0.56 | % | 0.54 | % | |||||||||
Non-interest bearing deposits | 5,244,552 | 3,931,194 | |||||||||||||||||||
Other liabilities | 410,906 | 328,391 | |||||||||||||||||||
Equity | 2,502,940 | 2,194,384 | |||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 23,849,412 | $ | 20,586,924 | |||||||||||||||||
Interest rate spread(5)(7) | 3.12 | % | 3.25 | % | |||||||||||||||||
Less: Fully tax-equivalent adjustment | (4,454 | ) | (3,400 | ) | (0.02 | ) | (0.03 | ) | |||||||||||||
Net free funds/contribution(6) | $ | 6,182,790 | $ | 4,731,693 | 0.15 | 0.14 | |||||||||||||||
Net interest income/ margin(7) (GAAP) | $ | 531,415 | $ | 474,323 | 3.25 | % | 3.36 | % | |||||||||||||
Fully tax-equivalent adjustment | 4,454 | 3,400 | 0.02 | 0.03 | |||||||||||||||||
Net interest income/ margin - FTE (7) | $ | 535,869 | $ | 477,723 | 3.27 | % | 3.39 | % |
(1) | Liquidity management assets include available-for-sale and held-to-maturity securities, interest earning deposits with banks, federal funds sold and securities purchased under resale agreements. |
(2) | Interest income on tax-advantaged loans, trading securities and securities reflects a tax-equivalent adjustment based on a marginal federal corporate tax rate of 35%. The total adjustments for the nine months ended September 30, 2016 and September 30, 2015 were $4.5 million and $3.4 million respectively. |
(3) | Other earning assets include brokerage customer receivables and trading account securities. |
(4) | Loans, net of unearned income, include loans held-for-sale and non-accrual loans. |
(5) | Interest rate spread is the difference between the yield earned on earning assets and the rate paid on interest-bearing liabilities. |
(6) | Net free funds are the difference between total average earning assets and total average interest-bearing liabilities. The estimated contribution to net interest margin from net free funds is calculated using the rate paid for total interest-bearing liabilities. |
(7) | See “Supplemental Financial Measures/Ratios” for additional information on this performance ratio. |
Third Quarter of 2016 Compared to Second Quarter of 2016 | Third Quarter of 2016 Compared to Third Quarter of 2015 | First Nine Months of 2016 Compared to First Nine Months of 2015 | |||||||||
(Dollars in thousands) | |||||||||||
Net interest income (GAAP) for comparative period | $ | 175,270 | $ | 165,540 | $ | 474,323 | |||||
Change due to mix and growth of earning assets and interest-bearing liabilities (volume) | 11,778 | 25,002 | 68,045 | ||||||||
Change due to interest rate fluctuations (rate) | (4,317 | ) | (5,906 | ) | (12,684 | ) | |||||
Change due to number of days in each period | 1,905 | — | 1,731 | ||||||||
Net interest income (GAAP) for the period ended September 30, 2016 | $ | 184,636 | $ | 184,636 | $ | 531,415 | |||||
Fully tax-equivalent adjustment | 1,556 | 1,556 | 4,454 | ||||||||
Net interest income - FTE | $ | 186,192 | $ | 186,192 | $ | 535,869 |
Three Months Ended | $ Change | % Change | ||||||||||||
(Dollars in thousands) | September 30, 2016 | September 30, 2015 | ||||||||||||
Brokerage | $ | 6,752 | $ | 6,579 | $ | 173 | 3 | % | ||||||
Trust and asset management | 12,582 | 11,664 | 918 | 8 | ||||||||||
Total wealth management | 19,334 | 18,243 | 1,091 | 6 | ||||||||||
Mortgage banking | 34,712 | 27,887 | 6,825 | 24 | ||||||||||
Service charges on deposit accounts | 8,024 | 7,403 | 621 | 8 | ||||||||||
Gains (losses) on investment securities, net | 3,305 | (98 | ) | 3,403 | NM | |||||||||
Fees from covered call options | 3,633 | 2,810 | 823 | 29 | ||||||||||
Trading losses, net | (432 | ) | (135 | ) | (297 | ) | NM | |||||||
Operating lease income, net | 4,459 | 613 | 3,846 | NM | ||||||||||
Other: | ||||||||||||||
Interest rate swap fees | 2,881 | 2,606 | 275 | 11 | ||||||||||
BOLI | 884 | 212 | 672 | NM | ||||||||||
Administrative services | 1,151 | 1,072 | 79 | 7 | ||||||||||
Gain on extinguishment of debt | — | — | — | NM | ||||||||||
Miscellaneous | 8,653 | 4,340 | 4,313 | 99 | ||||||||||
Total Other | 13,569 | 8,230 | 5,339 | 65 | ||||||||||
Total Non-Interest Income | $ | 86,604 | $ | 64,953 | $ | 21,651 | 33 | % |
Nine Months Ended | $ Change | % Change | ||||||||||||
(Dollars in thousands) | September 30, 2016 | September 30, 2015 | ||||||||||||
Brokerage | $ | 19,111 | $ | 20,181 | $ | (1,070 | ) | (5 | )% | |||||
Trust and asset management | 37,395 | 34,638 | 2,757 | 8 | ||||||||||
Total wealth management | 56,506 | 54,819 | 1,687 | 3 | ||||||||||
Mortgage banking | 93,254 | 91,694 | 1,560 | 2 | ||||||||||
Service charges on deposit accounts | 23,156 | 20,174 | 2,982 | 15 | ||||||||||
Gains on investment securities, net | 6,070 | 402 | 5,668 | NM | ||||||||||
Fees from covered call options | 9,994 | 11,735 | (1,741 | ) | (15 | ) | ||||||||
Trading losses, net | (916 | ) | (452 | ) | (464 | ) | NM | |||||||
Operating lease income, net | 11,270 | 755 | 10,515 | NM | ||||||||||
Other: | ||||||||||||||
Interest rate swap fees | 9,154 | 7,144 | 2,010 | 28 | ||||||||||
BOLI | 2,613 | 3,158 | (545 | ) | (17 | ) | ||||||||
Administrative services | 3,294 | 3,151 | 143 | 5 | ||||||||||
Gain on extinguishment of debt | 4,305 | — | 4,305 | NM | ||||||||||
Miscellaneous | 21,455 | 13,927 | 7,528 | 54 | ||||||||||
Total Other | 40,821 | 27,380 | 13,441 | 49 | ||||||||||
Total Non-Interest Income | $ | 240,155 | $ | 206,507 | $ | 33,648 | 16 | % |
Three months ended | Nine Months Ended | |||||||||||||||
(Dollars in thousands) | September 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | ||||||||||||
Retail originations | $ | 1,138,571 | $ | 900,302 | $ | 2,978,643 | $ | 2,906,508 | ||||||||
Correspondent originations | 121,007 | 73,362 | 229,825 | 188,393 | ||||||||||||
(A) Total originations | $ | 1,259,578 | $ | 973,664 | $ | 3,208,468 | $ | 3,094,901 | ||||||||
Purchases as a percentage of originations | 57 | % | 72 | % | 60 | % | 60 | % | ||||||||
Refinances as a percentage of originations | 43 | 28 | 40 | 40 | ||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
(B) Production revenue (1) | $ | 32,889 | $ | 27,211 | $ | 85,040 | $ | 90,640 | ||||||||
Production margin (B/A) | 2.61 | % | 2.79 | % | 2.65 | % | 2.93 | % | ||||||||
(C) Loans serviced for others | $ | 1,508,469 | $ | 853,286 | ||||||||||||
(D) MSRs, at fair value | 13,901 | 7,875 | ||||||||||||||
Percentage of MSRs to loans serviced for others (D/C) | 0.92 | % | 0.92 | % |
(1) | Production revenue represents revenue earned from the origination and subsequent sale of mortgages, including gains on loans sold and fees from originations, processing and other related activities, and excludes servicing fees, changes in fair value of servicing rights and changes to the mortgage recourse obligation. |
Three months ended | $ Change | % Change | ||||||||||||
(Dollars in thousands) | September 30, 2016 | September 30, 2015 | ||||||||||||
Salaries and employee benefits: | ||||||||||||||
Salaries | $ | 54,309 | $ | 53,028 | $ | 1,281 | 2 | % | ||||||
Commissions and incentive compensation | 33,740 | 30,035 | 3,705 | 12 | ||||||||||
Benefits | 15,669 | 14,686 | 983 | 7 | ||||||||||
Total salaries and employee benefits | 103,718 | 97,749 | 5,969 | 6 | ||||||||||
Equipment | 9,449 | 8,456 | 993 | 12 | ||||||||||
Operating lease equipment depreciation | 3,605 | 431 | 3,174 | NM | ||||||||||
Occupancy, net | 12,767 | 12,066 | 701 | 6 | ||||||||||
Data processing | 7,432 | 8,127 | (695 | ) | (9 | ) | ||||||||
Advertising and marketing | 7,365 | 6,237 | 1,128 | 18 | ||||||||||
Professional fees | 5,508 | 4,100 | 1,408 | 34 | ||||||||||
Amortization of other intangible assets | 1,085 | 1,350 | (265 | ) | (20 | ) | ||||||||
FDIC insurance | 3,686 | 3,035 | 651 | 21 | ||||||||||
OREO expense, net | 1,436 | (367 | ) | 1,803 | NM | |||||||||
Other: | ||||||||||||||
Commissions—3rd party brokers | 1,362 | 1,364 | (2 | ) | — | |||||||||
Postage | 1,889 | 1,927 | (38 | ) | (2 | ) | ||||||||
Miscellaneous | 17,313 | 15,499 | 1,814 | 12 | ||||||||||
Total other | 20,564 | 18,790 | 1,774 | 9 | ||||||||||
Total Non-Interest Expense | $ | 176,615 | $ | 159,974 | $ | 16,641 | 10 | % |
Nine months ended | $ Change | % Change | ||||||||||||
(Dollars in thousands) | September 30, 2016 | September 30, 2015 | ||||||||||||
Salaries and employee benefits: | ||||||||||||||
Salaries | $ | 157,515 | $ | 146,493 | $ | 11,022 | 8 | % | ||||||
Commissions and incentive compensation | 92,646 | 88,916 | 3,730 | 4 | ||||||||||
Benefits | 50,262 | 46,891 | 3,371 | 7 | ||||||||||
Total salaries and employee benefits | 300,423 | 282,300 | 18,123 | 6 | ||||||||||
Equipment | 27,523 | 24,090 | 3,433 | 14 | ||||||||||
Operating lease equipment depreciation | 9,040 | 547 | 8,493 | NM | ||||||||||
Occupancy, net | 36,658 | 35,818 | 840 | 2 | ||||||||||
Data processing | 21,089 | 19,656 | 1,433 | 7 | ||||||||||
Advertising and marketing | 18,085 | 16,550 | 1,535 | 9 | ||||||||||
Professional fees | 14,986 | 13,838 | 1,148 | 8 | ||||||||||
Amortization of other intangible assets | 3,631 | 3,297 | 334 | 10 | ||||||||||
FDIC insurance | 11,339 | 9,069 | 2,270 | 25 | ||||||||||
OREO expense, net | 3,344 | 1,885 | 1,459 | 77 | ||||||||||
Other: | ||||||||||||||
Commissions—3rd party brokers | 3,996 | 4,153 | (157 | ) | (4 | ) | ||||||||
Postage | 5,229 | 5,138 | 91 | 2 | ||||||||||
Miscellaneous | 45,971 | 45,248 | 723 | 2 | ||||||||||
Total other | 55,196 | 54,539 | 657 | 1 | ||||||||||
Total Non-Interest Expense | $ | 501,314 | $ | 461,589 | $ | 39,725 | 9 | % |
Three Months Ended | ||||||||||||||||||||
September 30, 2016 | June 30, 2016 | September 30, 2015 | ||||||||||||||||||
(Dollars in thousands) | Balance | Percent | Balance | Percent | Balance | Percent | ||||||||||||||
Loans: | ||||||||||||||||||||
Commercial | $ | 5,468,228 | 24 | % | $ | 5,030,253 | 22 | % | $ | 4,341,027 | 22 | % | ||||||||
Commercial real estate | 5,852,874 | 26 | % | 5,811,650 | 27 | 5,171,118 | 26 | |||||||||||||
Home equity | 751,788 | 3 | % | 771,992 | 4 | 779,886 | 4 | |||||||||||||
Residential real estate (1) | 1,165,027 | 5 | 1,024,441 | 5 | 952,524 | 5 | ||||||||||||||
Premium finance receivables | 5,697,113 | 25 | 5,433,006 | 25 | 5,121,170 | 26 | ||||||||||||||
Other loans | 136,591 | 1 | 133,210 | 1 | 143,276 | 1 | ||||||||||||||
Total loans, net of unearned income excluding covered loans (2) | $ | 19,071,621 | 84 | % | $ | 18,204,552 | 84 | % | $ | 16,509,001 | 84 | % | ||||||||
Covered loans | 101,570 | — | 109,533 | 1 | 174,768 | 1 | ||||||||||||||
Total average loans (2) | $ | 19,173,191 | 84 | % | $ | 18,314,085 | 85 | % | $ | 16,683,769 | 85 | % | ||||||||
Liquidity management assets (3) | $ | 3,671,577 | 16 | % | $ | 3,413,113 | 15 | % | 3,140,782 | 15 | % | |||||||||
Other earning assets (4) | 29,875 | — | 29,759 | — | 30,990 | — | ||||||||||||||
Total average earning assets | $ | 22,874,643 | 100 | % | $ | 21,756,957 | 100 | % | $ | 19,855,541 | 100 | % | ||||||||
Total average assets | $ | 24,879,252 | $ | 23,754,755 | $ | 21,679,062 | ||||||||||||||
Total average earning assets to total average assets | 92 | % | 92 | % | 92 | % |
(1) | Includes mortgage loans held-for-sale |
(2) | Includes loans held-for-sale and non-accrual loans |
(3) | Liquidity management assets include investment securities, other securities, interest earning deposits with banks, federal funds sold and securities purchased under resale agreements |
(4) | Other earning assets include brokerage customer receivables and trading account securities |
Nine Months Ended | |||||||||||||
September 30, 2016 | September 30, 2015 | ||||||||||||
(Dollars in thousands) | Balance | Percent | Balance | Percent | |||||||||
Loans: | |||||||||||||
Commercial | $ | 5,063,499 | 23 | % | $ | 4,191,137 | 22 | % | |||||
Commercial real estate | 5,764,773 | 26 | 4,852,973 | 26 | |||||||||
Home equity | 767,703 | 3 | 736,320 | 4 | |||||||||
Residential real estate (1) | 1,034,916 | 5 | 896,417 | 5 | |||||||||
Premium finance receivables | 5,497,715 | 25 | 4,897,534 | 26 | |||||||||
Other loans | 135,939 | 1 | 155,628 | 1 | |||||||||
Total loans, net of unearned income excluding covered loans (2) | $ | 18,264,545 | 83 | % | $ | 15,730,009 | 84 | % | |||||
Covered loans | 117,427 | 1 | 197,069 | 1 | |||||||||
Total average loans (2) | $ | 18,381,972 | 84 | % | $ | 15,927,078 | 85 | % | |||||
Liquidity management assets (3) | $ | 3,462,375 | 16 | % | $ | 2,907,284 | 15 | % | |||||
Other earning assets (4) | 29,457 | — | 30,286 | — | |||||||||
Total average earning assets | $ | 21,873,804 | 100 | % | $ | 18,864,648 | 100 | % | |||||
Total average assets | $ | 23,849,412 | $ | 20,586,924 | |||||||||
Total average earning assets to total average assets | 92 | % | 92 | % |
(1) | Includes mortgage loans held-for-sale |
(2) | Includes loans held-for-sale and non-accrual loans |
(3) | Liquidity management assets include investment securities, other securities, interest earning deposits with banks, federal funds sold and securities purchased under resale agreements |
(4) | Other earning assets include brokerage customer receivables and trading account securities |
September 30, 2016 | December 31, 2015 | September 30, 2015 | ||||||||||||||||||
% of | % of | % of | ||||||||||||||||||
(Dollars in thousands) | Amount | Total | Amount | Total | Amount | Total | ||||||||||||||
Commercial | $ | 5,951,544 | 31 | % | $ | 4,713,909 | 27 | % | $ | 4,400,185 | 27 | % | ||||||||
Commercial real estate | 5,908,684 | 31 | 5,529,289 | 32 | 5,307,566 | 32 | ||||||||||||||
Home equity | 742,868 | 4 | 784,675 | 5 | 797,465 | 5 | ||||||||||||||
Residential real estate | 663,598 | 3 | 607,451 | 3 | 571,743 | 3 | ||||||||||||||
Premium finance receivables—commercial | 2,430,233 | 13 | 2,374,921 | 14 | 2,407,075 | 15 | ||||||||||||||
Premium finance receivables—life insurance | 3,283,359 | 17 | 2,961,496 | 17 | 2,700,275 | 16 | ||||||||||||||
Consumer and other | 120,975 | 1 | 146,376 | 1 | 131,902 | 1 | ||||||||||||||
Total loans, net of unearned income, excluding covered loans | $ | 19,101,261 | 100 | % | $ | 17,118,117 | 99 | % | $ | 16,316,211 | 99 | % | ||||||||
Covered loans | 95,940 | — | 148,673 | 1 | 168,609 | 1 | ||||||||||||||
Total loans | $ | 19,197,201 | 100 | % | $ | 17,266,790 | 100 | % | $ | 16,484,820 | 100 | % |
As of September 30, 2016 | As of September 30, 2015 | ||||||||||||||||||||
Allowance | Allowance | ||||||||||||||||||||
% of | For Loan | % of | For Loan | ||||||||||||||||||
Total | Losses | Total | Losses | ||||||||||||||||||
(Dollars in thousands) | Balance | Balance | Allocation | Balance | Balance | Allocation | |||||||||||||||
Commercial: | |||||||||||||||||||||
Commercial, industrial and other | $ | 3,605,516 | 30.4 | % | $ | 29,087 | $ | 3,010,475 | 31.1 | % | $ | 23,206 | |||||||||
Franchise | 874,745 | 7.4 | 3,357 | 222,001 | 2.3 | 3,145 | |||||||||||||||
Mortgage warehouse lines of credit | 309,632 | 2.6 | 2,241 | 136,614 | 1.4 | 1,022 | |||||||||||||||
Asset-based lending | 845,719 | 7.2 | 6,728 | 802,370 | 8.3 | 6,282 | |||||||||||||||
Leases | 299,953 | 2.5 | 893 | 205,786 | 2.1 | 169 | |||||||||||||||
PCI - commercial loans (1) | 15,979 | 0.1 | 732 | 22,939 | 0.2 | 166 | |||||||||||||||
Total commercial | $ | 5,951,544 | 50.2 | % | $ | 43,038 | $ | 4,400,185 | 45.4 | % | $ | 33,990 | |||||||||
Commercial Real Estate: | |||||||||||||||||||||
Construction | $ | 451,477 | 3.8 | % | $ | 4,778 | $ | 347,234 | 3.5 | % | $ | 3,748 | |||||||||
Land | 107,701 | 0.9 | 3,577 | 79,076 | 0.8 | 2,550 | |||||||||||||||
Office | 884,082 | 7.5 | 6,003 | 790,311 | 8.1 | 7,156 | |||||||||||||||
Industrial | 767,504 | 6.5 | 6,353 | 636,124 | 6.6 | 5,521 | |||||||||||||||
Retail | 895,341 | 7.5 | 6,063 | 785,842 | 8.1 | 5,254 | |||||||||||||||
Multi-family | 794,955 | 6.7 | 7,966 | 687,659 | 7.1 | 6,959 | |||||||||||||||
Mixed use and other | 1,851,507 | 15.6 | 13,586 | 1,820,328 | 18.7 | 12,079 | |||||||||||||||
PCI - commercial real estate (1) | 156,117 | 1.3 | 22 | 160,992 | 1.7 | 794 | |||||||||||||||
Total commercial real estate | $ | 5,908,684 | 49.8 | % | $ | 48,348 | $ | 5,307,566 | 54.6 | % | $ | 44,061 | |||||||||
Total commercial and commercial real estate | $ | 11,860,228 | 100.0 | % | $ | 91,386 | $ | 9,707,751 | 100.0 | % | $ | 78,051 | |||||||||
Commercial real estate - collateral location by state: | |||||||||||||||||||||
Illinois | $ | 4,652,758 | 78.8 | % | $ | 4,053,531 | 76.4 | % | |||||||||||||
Wisconsin | 646,116 | 10.9 | 577,231 | 10.9 | |||||||||||||||||
Total primary markets | $ | 5,298,874 | 89.7 | % | $ | 4,630,762 | 87.3 | % | |||||||||||||
Indiana | 111,206 | 1.9 | 106,591 | 2.0 | |||||||||||||||||
Florida | 77,836 | 1.3 | 56,020 | 1.1 | |||||||||||||||||
Arizona | 45,620 | 0.8 | 9,677 | 0.2 | |||||||||||||||||
California | 38,195 | 0.6 | 36,957 | 0.7 | |||||||||||||||||
Other | 336,953 | 5.7 | 467,559 | 8.7 | |||||||||||||||||
Total | $ | 5,908,684 | 100.0 | % | $ | 5,307,566 | 100.0 | % |
(1) | PCI loans represent loans acquired with evidence of credit quality deterioration since origination, in accordance with ASC 310-30. Loan agings are based upon contractually required payments. |
As of September 30, 2016 | One year or less | From one to five years | Over five years | ||||||||||||
(Dollars in thousands) | Total | ||||||||||||||
Commercial | |||||||||||||||
Fixed rate | $ | 100,634 | $ | 829,041 | $ | 475,707 | $ | 1,405,382 | |||||||
Variable rate | 4,531,211 | 9,639 | 5,312 | 4,546,162 | |||||||||||
Total commercial | $ | 4,631,845 | $ | 838,680 | $ | 481,019 | $ | 5,951,544 | |||||||
Commercial real estate | |||||||||||||||
Fixed rate | 358,503 | 1,709,635 | 198,429 | 2,266,567 | |||||||||||
Variable rate | 3,597,698 | 41,212 | 3,207 | 3,642,117 | |||||||||||
Total commercial real estate | $ | 3,956,201 | $ | 1,750,847 | $ | 201,636 | $ | 5,908,684 | |||||||
Premium finance receivables, net of unearned income | |||||||||||||||
Fixed rate | 2,459,739 | 89,644 | 385 | 2,549,768 | |||||||||||
Variable rate | 3,163,824 | — | — | 3,163,824 | |||||||||||
Total premium finance receivables (1) | $ | 5,623,563 | $ | 89,644 | $ | 385 | $ | 5,713,592 |
1 Rating — | Minimal Risk (Loss Potential – none or extremely low) (Superior asset quality, excellent liquidity, minimal leverage) | |
2 Rating — | Modest Risk (Loss Potential demonstrably low) (Very good asset quality and liquidity, strong leverage capacity) | |
3 Rating — | Average Risk (Loss Potential low but no longer refutable) (Mostly satisfactory asset quality and liquidity, good leverage capacity) | |
4 Rating — | Above Average Risk (Loss Potential variable, but some potential for deterioration) (Acceptable asset quality, little excess liquidity, modest leverage capacity) | |
5 Rating — | Management Attention Risk (Loss Potential moderate if corrective action not taken) (Generally acceptable asset quality, somewhat strained liquidity, minimal leverage capacity) | |
6 Rating — | Special Mention (Loss Potential moderate if corrective action not taken) (Assets in this category are currently protected, potentially weak, but not to the point of substandard classification) | |
7 Rating — | Substandard Accrual (Loss Potential distinct possibility that the bank may sustain some loss, but no discernable impairment) (Must have well defined weaknesses that jeopardize the liquidation of the debt) | |
8 Rating — | Substandard Non-accrual (Loss Potential well documented probability of loss, including potential impairment) (Must have well defined weaknesses that jeopardize the liquidation of the debt) | |
9 Rating — | Doubtful (Loss Potential extremely high) (These assets have all the weaknesses in those classified “substandard” with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of current existing facts, conditions, and values, highly improbable) | |
10 Rating — | Loss (fully charged-off) (Loans in this category are considered fully uncollectible.) |
(Dollars in thousands) | September 30, 2016 | June 30, 2016 | December 31, 2015 | September 30, 2015 | |||||||||||
Loans past due greater than 90 days and still accruing (1): | |||||||||||||||
Commercial | $ | — | $ | 235 | $ | 541 | $ | — | |||||||
Commercial real estate | — | — | — | — | |||||||||||
Home equity | — | — | — | — | |||||||||||
Residential real estate | — | — | — | — | |||||||||||
Premium finance receivables—commercial | 7,754 | 10,558 | 10,294 | 8,231 | |||||||||||
Premium finance receivables—life insurance | — | — | — | — | |||||||||||
Consumer and other | 60 | 163 | 150 | 140 | |||||||||||
Total loans past due greater than 90 days and still accruing | 7,814 | 10,956 | 10,985 | 8,371 | |||||||||||
Non-accrual loans (2): | |||||||||||||||
Commercial | 16,418 | 16,801 | 12,712 | 12,018 | |||||||||||
Commercial real estate | 22,625 | 24,415 | 26,645 | 28,617 | |||||||||||
Home equity | 9,309 | 8,562 | 6,848 | 8,365 | |||||||||||
Residential real estate | 12,205 | 12,413 | 12,043 | 14,557 | |||||||||||
Premium finance receivables—commercial | 14,214 | 14,497 | 14,561 | 13,751 | |||||||||||
Premium finance receivables—life insurance | — | — | — | — | |||||||||||
Consumer and other | 543 | 475 | 263 | 297 | |||||||||||
Total non-accrual loans | 75,314 | 77,163 | 73,072 | 77,605 | |||||||||||
Total non-performing loans: | |||||||||||||||
Commercial | 16,418 | 17,036 | 13,253 | 12,018 | |||||||||||
Commercial real estate | 22,625 | 24,415 | 26,645 | 28,617 | |||||||||||
Home equity | 9,309 | 8,562 | 6,848 | 8,365 | |||||||||||
Residential real estate | 12,205 | 12,413 | 12,043 | 14,557 | |||||||||||
Premium finance receivables—commercial | 21,968 | 25,055 | 24,855 | 21,982 | |||||||||||
Premium finance receivables—life insurance | — | — | — | — | |||||||||||
Consumer and other | 603 | 638 | 413 | 437 | |||||||||||
Total non-performing loans | $ | 83,128 | $ | 88,119 | $ | 84,057 | $ | 85,976 | |||||||
Other real estate owned | 19,933 | 22,154 | 26,849 | 29,053 | |||||||||||
Other real estate owned—from acquisitions | 15,117 | 15,909 | 17,096 | 22,827 | |||||||||||
Other repossessed assets | 428 | 420 | 174 | 193 | |||||||||||
Total non-performing assets | $ | 118,606 | $ | 126,602 | $ | 128,176 | $ | 138,049 | |||||||
TDRs performing under the contractual terms of the loan agreement | 29,440 | 33,310 | 42,744 | 49,173 | |||||||||||
Total non-performing loans by category as a percent of its own respective category’s period-end balance: | |||||||||||||||
Commercial | 0.28 | % | 0.33 | % | 0.28 | % | 0.27 | % | |||||||
Commercial real estate | 0.38 | 0.42 | 0.48 | 0.54 | |||||||||||
Home equity | 1.25 | 1.13 | 0.87 | 1.05 | |||||||||||
Residential real estate | 1.84 | 1.90 | 1.98 | 2.55 | |||||||||||
Premium finance receivables—commercial | 0.90 | 1.01 | 1.05 | 0.91 | |||||||||||
Premium finance receivables—life insurance | — | — | — | — | |||||||||||
Consumer and other | 0.50 | 0.50 | 0.28 | 0.33 | |||||||||||
Total non-performing loans | 0.44 | % | 0.48 | % | 0.49 | % | 0.53 | % | |||||||
Total non-performing assets, as a percentage of total assets | 0.47 | % | 0.52 | % | 0.56 | % | 0.63 | % | |||||||
Allowance for loan losses as a percentage of total non-performing loans | 141.58 | % | 129.78 | % | 125.39 | % | 119.79 | % |
(1) | As of the dates shown, no TDRs were past due greater than 90 days and still accruing interest. |
(2) | Non-accrual loans included TDRs totaling $14.8 million, $16.3 million, $9.1 million and $10.1 million as of September 30, 2016, June 30, 2016, December 31, 2015 and September 30, 2015 respectively. |
Nonaccrual | 90+ days and still accruing | 60-89 days past due | 30-59 days past due | Current | Total Loans | ||||||||||||||||||
As of September 30, 2016 | |||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Loan Balances: | |||||||||||||||||||||||
Commercial | |||||||||||||||||||||||
Commercial, industrial and other | $ | 15,809 | $ | — | $ | 7,324 | $ | 8,987 | $ | 3,573,396 | $ | 3,605,516 | |||||||||||
Franchise | — | — | 458 | 1,626 | 872,661 | 874,745 | |||||||||||||||||
Mortgage warehouse lines of credit | — | — | — | — | 309,632 | 309,632 | |||||||||||||||||
Asset-based lending | 234 | — | 3,772 | 3,741 | 837,972 | 845,719 | |||||||||||||||||
Leases | 375 | — | 239 | — | 299,339 | 299,953 | |||||||||||||||||
PCI - commercial (1) | — | 1,783 | — | 1,036 | 13,160 | 15,979 | |||||||||||||||||
Total commercial | 16,418 | 1,783 | 11,793 | 15,390 | 5,906,160 | 5,951,544 | |||||||||||||||||
Commercial real estate | |||||||||||||||||||||||
Construction | 400 | — | — | 3,775 | 447,302 | 451,477 | |||||||||||||||||
Land | 1,208 | — | 787 | 300 | 105,406 | 107,701 | |||||||||||||||||
Office | 3,609 | — | 6,457 | 8,062 | 865,954 | 884,082 | |||||||||||||||||
Industrial | 9,967 | — | 940 | 2,961 | 753,636 | 767,504 | |||||||||||||||||
Retail | 909 | — | 1,340 | 8,723 | 884,369 | 895,341 | |||||||||||||||||
Multi-family | 90 | — | 3,051 | 2,169 | 789,645 | 794,955 | |||||||||||||||||
Mixed use and other | 6,442 | — | 2,157 | 5,184 | 1,837,724 | 1,851,507 | |||||||||||||||||
PCI - commercial real estate (1) | — | 21,433 | 1,509 | 4,066 | 129,109 | 156,117 | |||||||||||||||||
Total commercial real estate | 22,625 | 21,433 | 16,241 | 35,240 | 5,813,145 | 5,908,684 | |||||||||||||||||
Home equity | 9,309 | — | 1,728 | 3,842 | 727,989 | 742,868 | |||||||||||||||||
Residential real estate, including PCI | 12,205 | 1,496 | 2,232 | 1,088 | 646,577 | 663,598 | |||||||||||||||||
Premium finance receivables | |||||||||||||||||||||||
Commercial insurance loans | 14,214 | 7,754 | 6,968 | 10,291 | 2,391,006 | 2,430,233 | |||||||||||||||||
Life insurance loans | — | — | 9,960 | 3,717 | 3,006,795 | 3,020,472 | |||||||||||||||||
PCI - life insurance loans (1) | — | — | — | — | 262,887 | 262,887 | |||||||||||||||||
Consumer and other, including PCI | 543 | 124 | 204 | 871 | 119,233 | 120,975 | |||||||||||||||||
Total loans, net of unearned income, excluding covered loans | $ | 75,314 | $ | 32,590 | $ | 49,126 | $ | 70,439 | $ | 18,873,792 | $ | 19,101,261 | |||||||||||
Covered loans | 2,331 | 4,806 | 1,545 | 2,456 | 84,802 | 95,940 | |||||||||||||||||
Total loans, net of unearned income | $ | 77,645 | $ | 37,396 | $ | 50,671 | $ | 72,895 | $ | 18,958,594 | $ | 19,197,201 |
Aging as a % of Loan Balance: As of September 30, 2016 | Nonaccrual | 90+ days and still accruing | 60-89 days past due | 30-59 days past due | Current | Total Loans | |||||||||||
Commercial | |||||||||||||||||
Commercial, industrial and other | 0.4 | % | — | % | 0.2 | % | 0.2 | % | 99.2 | % | 100.0 | % | |||||
Franchise | — | — | 0.1 | 0.2 | 99.7 | 100.0 | |||||||||||
Mortgage warehouse lines of credit | — | — | — | — | 100.0 | 100.0 | |||||||||||
Asset-based lending | — | — | 0.4 | 0.4 | 99.2 | 100.0 | |||||||||||
Leases | 0.1 | — | 0.1 | — | 99.8 | 100.0 | |||||||||||
PCI - commercial (1) | — | 11.2 | — | 6.5 | 82.3 | 100.0 | |||||||||||
Total commercial | 0.3 | — | 0.2 | 0.3 | 99.2 | 100.0 | |||||||||||
Commercial real estate | |||||||||||||||||
Construction | 0.1 | — | — | 0.8 | 99.1 | 100.0 | |||||||||||
Land | 1.1 | — | 0.7 | 0.3 | 97.9 | 100.0 | |||||||||||
Office | 0.4 | — | 0.7 | 0.9 | 98.0 | 100.0 | |||||||||||
Industrial | 1.3 | — | 0.1 | 0.4 | 98.2 | 100.0 | |||||||||||
Retail | 0.1 | — | 0.1 | 1.0 | 98.8 | 100.0 | |||||||||||
Multi-family | — | — | 0.4 | 0.3 | 99.3 | 100.0 | |||||||||||
Mixed use and other | 0.3 | — | 0.1 | 0.3 | 99.3 | 100.0 | |||||||||||
PCI - commercial real estate (1) | — | 13.7 | 1.0 | 2.6 | 82.7 | 100.0 | |||||||||||
Total commercial real estate | 0.4 | 0.4 | 0.3 | 0.6 | 98.3 | 100.0 | |||||||||||
Home equity | 1.3 | — | 0.2 | 0.5 | 98.0 | 100.0 | |||||||||||
Residential real estate, including PCI | 1.8 | 0.2 | 0.3 | 0.2 | 97.5 | 100.0 | |||||||||||
Premium finance receivables | |||||||||||||||||
Commercial insurance loans | 0.6 | 0.3 | 0.3 | 0.4 | 98.4 | 100.0 | |||||||||||
Life insurance loans | — | — | 0.3 | 0.1 | 99.6 | 100.0 | |||||||||||
PCI - life insurance loans (1) | — | — | — | — | 100.0 | 100.0 | |||||||||||
Consumer and other, including PCI | 0.4 | 0.1 | 0.2 | 0.7 | 98.6 | 100.0 | |||||||||||
Total loans, net of unearned income, excluding covered loans | 0.4 | % | 0.2 | % | 0.3 | % | 0.4 | % | 98.7 | % | 100.0 | % | |||||
Covered loans | 2.4 | 5.0 | 1.6 | 2.6 | 88.4 | 100.0 | |||||||||||
Total loans, net of unearned income | 0.4 | % | 0.2 | % | 0.3 | % | 0.4 | % | 98.7 | % | 100.0 | % |
(1) | PCI loans represent loans acquired with evidence of credit quality deterioration since origination, in accordance with ASC 310-30. Loan agings are based upon contractually required payments. |
Nonaccrual | 90+ days and still accruing | 60-89 days past due | 30-59 days past due | Current | Total Loans | ||||||||||||||||||
As of June 30, 2016 | |||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Loan Balances: | |||||||||||||||||||||||
Commercial | |||||||||||||||||||||||
Commercial, industrial and other | $ | 16,414 | $ | — | $ | 1,412 | $ | 22,317 | $ | 3,416,432 | $ | 3,456,575 | |||||||||||
Franchise | — | — | 560 | 87 | 289,258 | 289,905 | |||||||||||||||||
Mortgage warehouse lines of credit | — | — | — | — | 270,586 | 270,586 | |||||||||||||||||
Asset-based lending | — | 235 | 1,899 | 6,421 | 834,112 | 842,667 | |||||||||||||||||
Leases | 387 | — | 48 | — | 267,639 | 268,074 | |||||||||||||||||
PCI - commercial (1) | — | 1,956 | 630 | 1,426 | 12,714 | 16,726 | |||||||||||||||||
Total commercial | 16,801 | 2,191 | 4,549 | 30,251 | 5,090,741 | 5,144,533 | |||||||||||||||||
Commercial real estate | |||||||||||||||||||||||
Construction | 673 | — | 46 | 7,922 | 396,264 | 404,905 | |||||||||||||||||
Land | 1,725 | — | — | 340 | 103,816 | 105,881 | |||||||||||||||||
Office | 6,274 | — | 5,452 | 4,936 | 892,791 | 909,453 | |||||||||||||||||
Industrial | 10,295 | — | 1,108 | 719 | 754,647 | 766,769 | |||||||||||||||||
Retail | 916 | — | 535 | 6,450 | 889,945 | 897,846 | |||||||||||||||||
Multi-family | 90 | — | 2,077 | 1,275 | 775,075 | 778,517 | |||||||||||||||||
Mixed use and other | 4,442 | — | 4,285 | 8,007 | 1,795,931 | 1,812,665 | |||||||||||||||||
PCI - commercial real estate (1) | — | 27,228 | 1,663 | 2,608 | 140,799 | 172,298 | |||||||||||||||||
Total commercial real estate | 24,415 | 27,228 | 15,166 | 32,257 | 5,749,268 | 5,848,334 | |||||||||||||||||
Home equity | 8,562 | — | 380 | 4,709 | 747,253 | 760,904 | |||||||||||||||||
Residential real estate, including PCI | 12,413 | 1,479 | 1,367 | 299 | 638,106 | 653,664 | |||||||||||||||||
Premium finance receivables | |||||||||||||||||||||||
Commercial insurance loans | 14,497 | 10,558 | 6,966 | 9,456 | 2,436,803 | 2,478,280 | |||||||||||||||||
Life insurance loans | — | — | 46,651 | 11,953 | 2,811,356 | 2,869,960 | |||||||||||||||||
PCI - life insurance loans (1) | — | — | — | — | 291,602 | 291,602 | |||||||||||||||||
Consumer and other, including PCI | 475 | 226 | 610 | 1,451 | 124,616 | 127,378 | |||||||||||||||||
Total loans, net of unearned income, excluding covered loans | $ | 77,163 | $ | 41,682 | $ | 75,689 | $ | 90,376 | $ | 17,889,745 | $ | 18,174,655 | |||||||||||
Covered loans | 2,651 | 6,810 | 697 | 1,610 | 93,480 | 105,248 | |||||||||||||||||
Total loans, net of unearned income | $ | 79,814 | $ | 48,492 | $ | 76,386 | $ | 91,986 | $ | 17,983,225 | $ | 18,279,903 |
Aging as a % of Loan Balance: As of June 30, 2016 | Nonaccrual | 90+ days and still accruing | 60-89 days past due | 30-59 days past due | Current | Total Loans | |||||||||||
Commercial | |||||||||||||||||
Commercial, industrial and other | 0.5 | % | — | % | — | % | 0.6 | % | 98.9 | % | 100.0 | % | |||||
Franchise | — | — | 0.2 | — | 99.8 | 100.0 | |||||||||||
Mortgage warehouse lines of credit | — | — | — | — | 100.0 | 100.0 | |||||||||||
Asset-based lending | — | — | 0.2 | 0.8 | 99.0 | 100.0 | |||||||||||
Leases | 0.1 | — | — | — | 99.9 | 100.0 | |||||||||||
PCI - commercial (1) | — | 11.7 | 3.8 | 8.5 | 76.0 | 100.0 | |||||||||||
Total commercial | 0.3 | — | 0.1 | 0.6 | 99.0 | 100.0 | |||||||||||
Commercial real estate | |||||||||||||||||
Construction | 0.2 | — | — | 2.0 | 97.8 | 100.0 | |||||||||||
Land | 1.6 | — | — | 0.3 | 98.1 | 100.0 | |||||||||||
Office | 0.7 | — | 0.6 | 0.5 | 98.2 | 100.0 | |||||||||||
Industrial | 1.3 | — | 0.1 | 0.1 | 98.5 | 100.0 | |||||||||||
Retail | 0.1 | — | 0.1 | 0.7 | 99.1 | 100.0 | |||||||||||
Multi-family | — | — | 0.3 | 0.2 | 99.5 | 100.0 | |||||||||||
Mixed use and other | 0.2 | — | 0.2 | 0.4 | 99.2 | 100.0 | |||||||||||
PCI - commercial real estate (1) | — | 15.8 | 1.0 | 1.5 | 81.7 | 100.0 | |||||||||||
Total commercial real estate | 0.4 | 0.5 | 0.3 | 0.6 | 98.2 | 100.0 | |||||||||||
Home equity | 1.1 | — | — | 0.6 | 98.3 | 100.0 | |||||||||||
Residential real estate, including PCI | 1.9 | 0.2 | 0.2 | — | 97.7 | 100.0 | |||||||||||
Premium finance receivables | |||||||||||||||||
Commercial insurance loans | 0.6 | 0.4 | 0.3 | 0.4 | 98.3 | 100.0 | |||||||||||
Life insurance loans | — | — | 1.6 | 0.4 | 98.0 | 100.0 | |||||||||||
PCI - life insurance loans (1) | — | — | — | — | 100.0 | 100.0 | |||||||||||
Consumer and other, including PCI | 0.4 | 0.2 | 0.5 | 1.1 | 97.8 | 100.0 | |||||||||||
Total loans, net of unearned income, excluding covered loans | 0.4 | % | 0.2 | % | 0.4 | % | 0.5 | % | 98.5 | % | 100.0 | % | |||||
Covered loans | 2.5 | 6.5 | 0.7 | 1.5 | 88.8 | 100.0 | |||||||||||
Total loans, net of unearned income | 0.4 | % | 0.3 | % | 0.4 | % | 0.5 | % | 98.4 | % | 100.0 | % |
(1) | PCI loans represent loans acquired with evidence of credit quality deterioration since origination, in accordance with ASC 310-30. Loan agings are based upon contractually required payments. |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||
(Dollars in thousands) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Balance at beginning of period | $ | 88,119 | $ | 76,554 | $ | 84,057 | $ | 78,677 | |||||||
Additions, net | 9,522 | 24,333 | 32,039 | 42,141 | |||||||||||
Return to performing status | (231 | ) | (1,028 | ) | (3,110 | ) | (2,591 | ) | |||||||
Payments received | (5,235 | ) | (5,468 | ) | (13,353 | ) | (16,417 | ) | |||||||
Transfer to OREO and other repossessed assets | (2,270 | ) | (1,773 | ) | (6,168 | ) | (8,678 | ) | |||||||
Charge-offs | (3,353 | ) | (4,081 | ) | (6,829 | ) | (8,637 | ) | |||||||
Net change for niche loans (1) | (3,424 | ) | (2,561 | ) | (3,508 | ) | 1,481 | ||||||||
Balance at end of period | $ | 83,128 | $ | 85,976 | $ | 83,128 | $ | 85,976 |
(1) | This includes activity for premium finance receivables and indirect consumer loans. |
Three Months Ended | Nine Months Ended | ||||||||||||||
(Dollars in thousands) | September 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | |||||||||||
Allowance for loan losses at beginning of period | $ | 114,356 | $ | 100,204 | $ | 105,400 | $ | 91,705 | |||||||
Provision for credit losses | 9,741 | 8,665 | 27,433 | 24,551 | |||||||||||
Other adjustments | (112 | ) | (153 | ) | (324 | ) | (494 | ) | |||||||
Reclassification (to) from allowance for unfunded lending-related commitments | (579 | ) | (42 | ) | (700 | ) | (151 | ) | |||||||
Charge-offs: | |||||||||||||||
Commercial | 3,469 | 964 | 4,861 | 2,884 | |||||||||||
Commercial real estate | 382 | 1,948 | 1,555 | 3,809 | |||||||||||
Home equity | 574 | 1,116 | 3,672 | 3,547 | |||||||||||
Residential real estate | 134 | 1,138 | 1,320 | 2,692 | |||||||||||
Premium finance receivables—commercial | 1,959 | 1,595 | 6,350 | 4,384 | |||||||||||
Premium finance receivables—life insurance | — | — | — | — | |||||||||||
Consumer and other | 389 | 116 | 720 | 342 | |||||||||||
Total charge-offs | 6,907 | 6,877 | 18,478 | 17,658 | |||||||||||
Recoveries: | |||||||||||||||
Commercial | 176 | 462 | 926 | 1,117 | |||||||||||
Commercial real estate | 364 | 213 | 1,029 | 2,349 | |||||||||||
Home equity | 65 | 42 | 184 | 129 | |||||||||||
Residential real estate | 61 | 136 | 204 | 228 | |||||||||||
Premium finance receivables—commercial | 456 | 278 | 1,876 | 1,065 | |||||||||||
Premium finance receivables—life insurance | — | 16 | — | 16 | |||||||||||
Consumer and other | 72 | 52 | 143 | 139 | |||||||||||
Total recoveries | 1,194 | 1,199 | 4,362 | 5,043 | |||||||||||
Net charge-offs | (5,713 | ) | (5,678 | ) | (14,116 | ) | (12,615 | ) | |||||||
Allowance for loan losses at period end | $ | 117,693 | $ | 102,996 | $ | 117,693 | $ | 102,996 | |||||||
Allowance for unfunded lending-related commitments at period end | 1,648 | 926 | 1,648 | 926 | |||||||||||
Allowance for credit losses at period end | $ | 119,341 | $ | 103,922 | $ | 119,341 | $ | 103,922 | |||||||
Annualized net charge-offs by category as a percentage of its own respective category’s average: | |||||||||||||||
Commercial | 0.24 | % | 0.05 | % | 0.10 | % | 0.06 | % | |||||||
Commercial real estate | 0.00 | 0.13 | 0.01 | 0.04 | |||||||||||
Home equity | 0.27 | 0.55 | 0.61 | 0.62 | |||||||||||
Residential real estate | 0.03 | 0.42 | 0.14 | 0.37 | |||||||||||
Premium finance receivables—commercial | 0.24 | 0.21 | 0.25 | 0.18 | |||||||||||
Premium finance receivables—life insurance | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||
Consumer and other | 0.92 | 0.17 | 0.56 | 0.17 | |||||||||||
Total loans, net of unearned income, excluding covered loans | 0.12 | % | 0.14 | % | 0.10 | % | 0.11 | % | |||||||
Net charge-offs as a percentage of the provision for credit losses | 58.65 | % | 65.53 | % | 51.46 | % | 51.39 | % | |||||||
Loans at period-end, excluding covered loans | $ | 19,101,261 | $ | 16,316,211 | |||||||||||
Allowance for loan losses as a percentage of loans at period end | 0.62 | % | 0.63 | % | |||||||||||
Allowance for credit losses as a percentage of loans at period end | 0.62 | % | 0.64 | % |
• | historical loss experience; |
• | 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 national, regional, and local economic and business conditions and developments that affect the collectibility of the portfolio; |
• | changes in the nature and volume of the portfolio and in the terms of the loans; |
• | changes in the experience, ability, and depth of lending management and other relevant staff; |
• | changes in the volume and severity of past due loans, the volume of non-accrual loans, and the volume and severity of adversely classified or graded loans; |
• | changes in the quality of the bank’s loan review system; |
• | changes in the 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 bank’s existing portfolio. |
September 30, | June 30, | September 30, | |||||||||
(Dollars in thousands) | 2016 | 2016 | 2015 | ||||||||
Accruing TDRs: | |||||||||||
Commercial | $ | 2,285 | $ | 3,931 | $ | 5,717 | |||||
Commercial real estate | 22,261 | 24,450 | 39,867 | ||||||||
Residential real estate and other | 4,894 | 4,929 | 3,589 | ||||||||
Total accruing TDRs | $ | 29,440 | $ | 33,310 | $ | 49,173 | |||||
Non-accrual TDRs: (1) | |||||||||||
Commercial | $ | 2,134 | $ | 1,477 | $ | 147 | |||||
Commercial real estate | 10,610 | 12,240 | 5,778 | ||||||||
Residential real estate and other | 2,092 | 2,608 | 4,222 | ||||||||
Total non-accrual TDRs | $ | 14,836 | $ | 16,325 | $ | 10,147 | |||||
Total TDRs: | |||||||||||
Commercial | $ | 4,419 | $ | 5,408 | $ | 5,864 | |||||
Commercial real estate | 32,871 | 36,690 | 45,645 | ||||||||
Residential real estate and other | 6,986 | 7,537 | 7,811 | ||||||||
Total TDRs | $ | 44,276 | $ | 49,635 | $ | 59,320 | |||||
Weighted-average contractual interest rate of TDRs | 4.33 | % | 4.31 | % | 4.04 | % |
(1) | Included in total non-performing loans. |
Three Months Ended September 30, 2016 (Dollars in thousands) | Commercial | Commercial Real Estate | Residential Real Estate and Other | Total | |||||||||||
Balance at beginning of period | $ | 5,408 | $ | 36,690 | $ | 7,537 | $ | 49,635 | |||||||
Additions during the period | 28 | — | 43 | 71 | |||||||||||
Reductions: | |||||||||||||||
Charge-offs | (761 | ) | (204 | ) | — | (965 | ) | ||||||||
Transferred to OREO and other repossessed assets | — | (681 | ) | (535 | ) | (1,216 | ) | ||||||||
Removal of TDR loan status (1) | — | (1,323 | ) | — | (1,323 | ) | |||||||||
Payments received | (256 | ) | (1,611 | ) | (59 | ) | (1,926 | ) | |||||||
Balance at period end | $ | 4,419 | $ | 32,871 | $ | 6,986 | $ | 44,276 |
Three Months Ended September 30, 2015 (Dollars in thousands) | Commercial | Commercial Real Estate | Residential Real Estate and Other | Total | |||||||||||
Balance at beginning of period | $ | 6,204 | $ | 48,450 | $ | 8,122 | $ | 62,776 | |||||||
Additions during the period | — | — | 222 | 222 | |||||||||||
Reductions: | |||||||||||||||
Charge-offs | — | (267 | ) | (52 | ) | (319 | ) | ||||||||
Transferred to OREO and other repossessed assets | — | — | (175 | ) | (175 | ) | |||||||||
Removal of TDR loan status (1) | (234 | ) | (1,581 | ) | - | (1,815 | ) | ||||||||
Payments received | (106 | ) | (957 | ) | (306 | ) | (1,369 | ) | |||||||
Balance at period end | $ | 5,864 | $ | 45,645 | $ | 7,811 | $ | 59,320 |
Nine Months Ended September 30, 2016 (Dollars in thousands) | Commercial | Commercial Real Estate | Residential Real Estate and Other | Total | |||||||||||
Balance at beginning of period | $ | 5,747 | $ | 38,707 | $ | 7,399 | $ | 51,853 | |||||||
Additions during the period | 345 | 8,521 | 583 | 9,449 | |||||||||||
Reductions: | |||||||||||||||
Charge-offs | (781 | ) | (1,038 | ) | (212 | ) | (2,031 | ) | |||||||
Transferred to OREO and other repossessed assets | — | (1,365 | ) | (535 | ) | (1,900 | ) | ||||||||
Removal of TDR loan status (1) | — | (6,479 | ) | — | (6,479 | ) | |||||||||
Payments received | (892 | ) | (5,475 | ) | (249 | ) | (6,616 | ) | |||||||
Balance at period end | $ | 4,419 | $ | 32,871 | $ | 6,986 | $ | 44,276 |
Nine Months Ended September 30, 2015 (Dollars in thousands) | Commercial | Commercial Real Estate | Residential Real Estate and Other | Total | |||||||||||
Balance at beginning of period | $ | 7,576 | $ | 67,623 | $ | 7,076 | $ | 82,275 | |||||||
Additions during the period | — | 169 | 1,664 | 1,833 | |||||||||||
Reductions: | |||||||||||||||
Charge-offs | (397 | ) | (268 | ) | (92 | ) | (757 | ) | |||||||
Transferred to OREO and other repossessed assets | (562 | ) | (2,290 | ) | (279 | ) | (3,131 | ) | |||||||
Removal of TDR loan status (1) | (471 | ) | (10,151 | ) | — | (10,622 | ) | ||||||||
Payments received | (282 | ) | (9,438 | ) | (558 | ) | (10,278 | ) | |||||||
Balance at period end | $ | 5,864 | $ | 45,645 | $ | 7,811 | $ | 59,320 |
(1) | Loan was previously classified as a TDR and subsequently performed in compliance with the loan's modified terms for a period of six months (including over a calendar year-end) at a modified interest rate which represented a market rate at the time of restructuring. Per our TDR policy, the TDR classification is removed. |
Three Months Ended | Nine Months Ended | ||||||||||||||
(Dollars in thousands) | September 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | |||||||||||
Balance at beginning of period | $ | 38,063 | $ | 42,080 | $ | 43,945 | $ | 45,642 | |||||||
Disposal/resolved | (5,967 | ) | (7,611 | ) | (19,324 | ) | (20,532 | ) | |||||||
Transfers in at fair value, less costs to sell | 3,958 | 6,159 | 8,558 | 16,402 | |||||||||||
Transfers in from covered OREO subsequent to loss share expiration | — | 7,316 | 3,300 | 7,316 | |||||||||||
Additions from acquisition | — | 4,617 | 1,064 | 5,378 | |||||||||||
Fair value adjustments | (1,004 | ) | (681 | ) | (2,493 | ) | (2,326 | ) | |||||||
Balance at end of period | $ | 35,050 | $ | 51,880 | $ | 35,050 | $ | 51,880 |
Period End | |||||||||||
(Dollars in thousands) | September 30, 2016 | June 30, 2016 | September 30, 2015 | ||||||||
Residential real estate | $ | 9,602 | $ | 9,153 | $ | 12,577 | |||||
Residential real estate development | 2,114 | 2,133 | 3,147 | ||||||||
Commercial real estate | 23,334 | 26,777 | 36,156 | ||||||||
Total | $ | 35,050 | $ | 38,063 | $ | 51,880 |
Time Certificates of Deposit Maturity/Re-pricing Analysis As of September 30, 2016 (Dollars in thousands) | CDARs & Brokered Certificates of Deposit (1) | MaxSafe Certificates of Deposit (1) | Variable Rate Certificates of Deposit (2) | Other Fixed Rate Certificates of Deposit (1) | Total Time Certificates of Deposits | Weighted-Average Rate of Maturing Time Certificates of Deposit (3) | |||||||||||||||||
1-3 months | $ | — | $ | 53,575 | $ | 138,228 | $ | 697,340 | $ | 889,143 | 0.62 | % | |||||||||||
4-6 months | — | 33,497 | — | 655,169 | 688,666 | 0.72 | % | ||||||||||||||||
7-9 months | 43,570 | 24,529 | — | 503,267 | 571,366 | 0.75 | % | ||||||||||||||||
10-12 months | 531 | 21,464 | — | 530,905 | 552,900 | 0.81 | % | ||||||||||||||||
13-18 months | 2,744 | 16,479 | — | 1,016,558 | 1,035,781 | 1.10 | % | ||||||||||||||||
19-24 months | 3,021 | 8,259 | — | 162,251 | 173,531 | 0.91 | % | ||||||||||||||||
24+ months | 1,249 | 13,232 | — | 275,609 | 290,090 | 1.29 | % | ||||||||||||||||
Total | $ | 51,115 | $ | 171,035 | $ | 138,228 | $ | 3,841,099 | $ | 4,201,477 | 0.86 | % |
(1) | This category of certificates of deposit is shown by contractual maturity date. |
(2) | This category includes variable rate certificates of deposit and savings certificates with the majority repricing on at least a monthly basis. |
(3) | Weighted-average rate excludes the impact of purchase accounting fair value adjustments. |
Three Months Ended | ||||||||||||||||||||
September 30, 2016 | June 30, 2016 | September 30, 2015 | ||||||||||||||||||
(Dollars in thousands) | Balance | Percent | Balance | Percent | Balance | Percent | ||||||||||||||
Non-interest bearing | $ | 5,566,983 | 27 | % | $ | 5,223,384 | 28 | % | $ | 4,473,632 | 25 | % | ||||||||
NOW and interest bearing demand deposits | 2,502,388 | 12 | 2,383,125 | 12 | 2,219,654 | 12 | ||||||||||||||
Wealth management deposits | 2,092,115 | 10 | 1,585,607 | 8 | 1,532,766 | 9 | ||||||||||||||
Money market | 4,471,399 | 22 | 4,308,657 | 22 | 3,955,568 | 22 | ||||||||||||||
Savings | 1,914,408 | 9 | 1,803,421 | 9 | 1,676,084 | 9 | ||||||||||||||
Time certificates of deposit | 4,136,792 | 20 | 3,985,185 | 21 | 4,105,579 | 23 | ||||||||||||||
Total average deposits | $ | 20,684,085 | 100 | % | $ | 19,289,379 | 100 | % | $ | 17,963,283 | 100 | % |
September 30, | December 31, | ||||||||||||||||||
(Dollars in thousands) | 2016 | 2015 | 2015 | 2014 | 2013 | ||||||||||||||
Total deposits | $ | 21,147,655 | $ | 18,228,469 | $ | 18,639,634 | $ | 16,281,844 | $ | 14,668,789 | |||||||||
Brokered deposits | 1,142,679 | 763,110 | 862,026 | 718,986 | 476,139 | ||||||||||||||
Brokered deposits as a percentage of total deposits | 5.4 | % | 4.2 | % | 4.6 | % | 4.4 | % | 3.2 | % |
Three Months Ended | |||||||||||
September 30, | June 30, | September 30, | |||||||||
(Dollars in thousands) | 2016 | 2016 | 2015 | ||||||||
FHLB advances | $ | 459,198 | $ | 946,081 | $ | 394,666 | |||||
Other borrowings: | |||||||||||
Notes payable | 59,896 | 63,642 | 74,959 | ||||||||
Short-term borrowings | 36,615 | 41,597 | 63,111 | ||||||||
Secured borrowings | 134,331 | 124,317 | 116,136 | ||||||||
Other | 18,465 | 18,677 | 18,343 | ||||||||
Total other borrowings | $ | 249,307 | $ | 248,233 | $ | 272,549 | |||||
Subordinated notes | 138,925 | 138,898 | 138,825 | ||||||||
Junior subordinated debentures | 253,566 | 253,566 | 264,974 | ||||||||
Total other funding sources | $ | 1,100,996 | $ | 1,586,778 | $ | 1,071,014 |
September 30, 2016 | June 30, 2016 | September 30, 2015 | ||||||
Leverage ratio | 9.0 | % | 9.2 | % | 9.2 | % | ||
Tier 1 capital to risk-weighted assets | 9.8 | 10.1 | 10.3 | |||||
Common equity Tier 1 capital to risk-weighted assets | 8.7 | 8.9 | 8.6 | |||||
Total capital to risk-weighted assets | 12.1 | 12.4 | 12.6 | |||||
Total average equity-to-total average assets(1) | 10.7 | 10.4 | 10.7 |
(1) | Based on quarterly average balances. |
Minimum Capital Requirements | Well Capitalized | ||||
Leverage ratio | 4.0 | % | 5.0 | % | |
Tier 1 capital to risk-weighted assets | 6.0 | 8.0 | |||
Common equity Tier 1 capital to risk-weighted assets | 4.5 | 6.5 | |||
Total capital to risk-weighted assets | 8.0 | 10.0 |
• | difficult economic conditions have adversely affected our company and the financial services industry in general and further deterioration in economic conditions may materially adversely affect our business, financial condition, results of operations and cash flows; |
• | since our business is concentrated in the Chicago metropolitan and southern Wisconsin market areas, further declines in the economy of this region could adversely affect our business; |
• | if our allowance for loan losses is not sufficient to absorb losses that may occur in our loan portfolio, our financial condition and liquidity could suffer; |
• | a significant portion of our loan portfolio is comprised of commercial loans, the repayment of which is largely dependent upon the financial success and economic viability of the borrower; |
• | a substantial portion of our loan portfolio is secured by real estate, in particular commercial real estate. Deterioration in the real estate markets could lead to additional losses, which could have a material adverse effect on our financial condition and results of operations; |
• | any inaccurate assumptions in our analytical and forecasting models could cause us to miscalculate our projected revenue or losses, which could adversely affect our financial condition; |
• | unanticipated changes in prevailing interest rates and the effects of changing regulation could adversely affect our net interest income, which is our largest source of income; |
• | our liquidity position may be negatively impacted if economic conditions continue to suffer; |
• | the financial services industry is very competitive, and if we are not able to compete effectively, we may lose market share and our business could suffer; |
• | if we are unable to compete effectively, we will lose market share and income from deposits, loans and other products may be reduced. This could adversely affect our profitability and have a material adverse effect on our business, financial condition and results of operations; |
• | if we are unable to continue to identify favorable acquisitions or successfully integrate our acquisitions, our growth may be limited and our results of operations could suffer; |
• | our participation in FDIC-assisted acquisitions may present additional risks to our financial condition and results of operations; |
• | an actual or perceived reduction in our financial strength may cause others to reduce or cease doing business with us, which could result in a decrease in our net interest income and fee revenues; |
• | if our growth requires us to raise additional capital, that capital may not be available when it is needed or the cost of that capital may be very high; |
• | disruption in the financial markets could result in lower fair values for our investment securities portfolio; |
• | our controls and procedures may fail or be circumvented; |
• | new lines of business and new products and services are essential to our ability to compete but may subject us to additional risks; |
• | failures of our information technology systems may adversely affect our operations; |
• | failures by or of our vendors may adversely affect our operations; |
• | we issue debit cards, and debit card transactions pose a particular cybersecurity risk that is outside of our control; |
• | we depend on the accuracy and completeness of information we receive about our customers and counterparties to make credit decisions; |
• | if we are unable to attract and retain experienced and qualified personnel, our ability to provide high quality service will be diminished, we may lose key customer relationships, and our results of operations may suffer; |
• | we are subject to environmental liability risk associated with lending activities; |
• | we are subject to claims and legal actions which could negatively affect our results of operations or financial condition; |
• | losses incurred in connection with actual or projected repurchases and indemnification payments related to mortgages that we have sold into the secondary market may exceed our financial statement reserves and we may be required to increase such reserves in the future. Increases to our reserves and losses incurred in connection with actual loan repurchases and indemnification payments could have a material adverse effect on our business, financial condition, results of operations or cash flows; |
• | consumers may decide not to use banks to complete their financial transactions, which could adversely affect our business and results of operations; |
• | we may be adversely impacted by the soundness of other financial institutions; |
• | de novo operations often involve significant expenses and delayed returns and may negatively impact Wintrust's profitability; |
• | we are subject to examinations and challenges by tax authorities, and changes in federal and state tax laws and changes in interpretation of existing laws can impact our financial results; |
• | changes in accounting policies or accounting standards could materially adversely affect how we report our financial results and financial condition; |
• | we are a bank holding company, and our sources of funds, including to pay dividends, are limited; |
• | anti-takeover provisions could negatively impact our shareholders; |
• | if we fail to meet our regulatory capital ratios, we may be forced to raise capital or sell assets; |
• | if our credit rating is lowered, our financing costs could increase; |
• | changes in the United States’ monetary policy may restrict our ability to conduct our business in a profitable manner; |
• | legislative and regulatory actions taken now or in the future regarding the financial services industry may significantly increase our costs or limit our ability to conduct our business in a profitable manner; |
• | financial reform legislation and increased regulatory rigor around mortgage-related issues may reduce our ability to market our products to consumers and may limit our ability to profitably operate our mortgage business; |
• | federal, state and local consumer lending laws may restrict our ability to originate certain mortgage loans or increase our risk of liability with respect to such loans and could increase our cost of doing business; |
• | regulatory initiatives regarding bank capital requirements may require heightened capital; |
• | our FDIC insurance premiums may increase, which could negatively impact our results of operations; |
• | non-compliance with the USA PATRIOT Act, Bank Secrecy Act or other laws and regulations could result in fines or sanctions; |
• | our premium finance business may involve a higher risk of delinquency or collection than our other lending operations, and could expose us to losses; |
• | widespread financial difficulties or credit downgrades among commercial and life insurance providers could lessen the value of the collateral securing our premium finance loans and impair the financial condition and liquidity of FIFC and FIFC Canada; |
• | regulatory changes could significantly reduce loan volume and impair the financial condition of FIFC; and |
• | our wealth management business in general, and WHI's brokerage operation, in particular, exposes us to certain risks associated with the securities industry. |
Static Shock Scenarios | +200 Basis Points | +100 Basis Points | -100 Basis Points | |||||
September 30, 2016 | 19.6 | % | 10.1 | % | (10.4 | )% | ||
June 30, 2016 | 16.9 | % | 8.9 | % | (8.9 | )% | ||
September 30, 2015 | 15.6 | % | 8.0 | % | (11.1 | )% |
Ramp Scenarios | +200 Basis Points | +100 Basis Points | -100 Basis Points | |||||
September 30, 2016 | 7.8 | % | 3.9 | % | (4.1 | )% | ||
June 30, 2016 | 7.0 | % | 3.5 | % | (3.7 | )% | ||
September 30, 2015 | 6.7 | % | 3.6 | % | (4.0 | )% |
(a) | Exhibits |
31.1 | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
31.2 | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
32.1 | Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
101.INS | XBRL Instance Document * | |
101.SCH | XBRL Taxonomy Extension Schema Document | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document |
• | Includes the following financial information included in the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2016, formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Statements of Condition, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Changes in Shareholders’ Equity, (v) the Consolidated Statements of Cash Flows, and (vi) Notes to Consolidated Financial Statements |
WINTRUST FINANCIAL CORPORATION (Registrant) | ||||
Date: | November 8, 2016 | /s/ DAVID L. STOEHR | ||
David L. Stoehr | ||||
Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of Wintrust Financial Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounted principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ EDWARD J. WEHMER |
Name: Edward J. Wehmer |
Title: President and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Wintrust Financial Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounted principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ DAVID L. STOEHR |
Name: David L. Stoehr |
Title: Executive Vice President and Chief Financial Officer |
(1) | The Quarterly Report of the Company on Form 10-Q for the period ended September 30, 2016, as filed with the Securities and Exchange Commission on November 8, 2016, (the “Report”) fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ EDWARD J. WEHMER |
Name: Edward J. Wehmer |
Title: President and Chief Executive Officer |
Date: November 8, 2016 |
/s/ DAVID L. STOEHR |
Name: David L. Stoehr |
Title: Executive Vice President and Chief Financial Officer |
Date: November 8, 2016 |
Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Oct. 31, 2016 |
|
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q3 | |
Entity Current Reporting Status | Yes | |
Trading Symbol | WTFC | |
Entity Registrant Name | WINTRUST FINANCIAL CORP | |
Entity Central Index Key | 0001015328 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 51,771,192 |
Consolidated Statements Of Condition (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
---|---|---|---|
Held-to-maturity securities | $ 942,666 | $ 878,111 | $ 0 |
Preferred stock, no par value (usd per share) | |||
Preferred stock, 20,000,000 shares authorized | 20,000,000 | 20,000,000 | 20,000,000 |
Common stock, no par value (usd per share) | |||
Common stock, $1.00 stated value (usd per share) | $ 1.00 | $ 1.00 | $ 1.00 |
Common stock, 100,000,000 shares authorized | 100,000,000 | 100,000,000 | 100,000,000 |
Common stock, shares issued | 51,811,204 | 48,468,894 | 48,422,294 |
Treasury stock, shares | 96,521 | 85,615 | 85,424 |
Series C Preferred Stock | |||
Preferred stock, liquidation value per share (usd per share) | $ 1,000 | $ 1,000 | $ 1,000 |
Preferred stock, shares outstanding | 126,257 | 126,287 | 126,312 |
Series D Preferred Stock | |||
Preferred stock, liquidation value per share (usd per share) | $ 25 | $ 25 | $ 25 |
Preferred stock, shares outstanding | 5,000,000 | 5,000,000 | 5,000,000 |
Consolidated Statements Of Comprehensive Income (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 53,115 | $ 38,355 | $ 152,267 | $ 121,238 |
Unrealized gains (losses) on securities | ||||
Before tax | 2,525 | 31,268 | 33,669 | 4,144 |
Tax effect | (993) | (12,273) | (13,225) | (1,645) |
Net of tax | 1,532 | 18,995 | 20,444 | 2,499 |
Reclassification of net gains (losses) included in net income | ||||
Before tax | 3,305 | (98) | 6,070 | 402 |
Tax effect | (1,300) | 38 | (2,386) | (158) |
Net of tax | 2,005 | (60) | 3,684 | 244 |
Reclassification of amortization of unrealized losses on investment securities transferred to held-to-maturity from available-for-sale | ||||
Before tax | (3,781) | 0 | (11,038) | 0 |
Tax effect | 1,486 | 0 | 4,331 | 0 |
Net of tax | (2,295) | 0 | (6,707) | 0 |
Net unrealized gains (losses) on securities | 1,822 | 19,055 | 23,467 | 2,255 |
Unrealized gains (losses) on derivative instruments | ||||
Before tax | 2,773 | 99 | 2,728 | (247) |
Tax effect | (1,090) | (39) | (1,072) | 97 |
Net unrealized gains (losses) on derivative instruments | 1,683 | 60 | 1,656 | (150) |
Foreign currency adjustment | ||||
Before tax | (2,237) | (8,682) | 6,966 | (18,900) |
Tax effect | 593 | 2,345 | (1,960) | 5,034 |
Net foreign currency adjustment | (1,644) | (6,337) | 5,006 | (13,866) |
Total other comprehensive income (loss) | 1,861 | 12,778 | 30,129 | (11,761) |
Comprehensive income | $ 54,976 | $ 51,133 | $ 182,396 | $ 109,477 |
Basis of Presentation |
9 Months Ended |
---|---|
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements of Wintrust Financial Corporation and Subsidiaries (“Wintrust” or “the Company”) presented herein are unaudited, but in the opinion of management reflect all necessary adjustments of a normal or recurring nature for a fair presentation of results as of the dates and for the periods covered by the consolidated financial statements. The accompanying consolidated financial statements are unaudited and do not include information or footnotes necessary for a complete presentation of financial condition, results of operations or cash flows in accordance with U.S. generally accepted accounting principles ("GAAP"). The consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 (“2015 Form 10-K”). Operating results reported for the three-month and nine-month periods are not necessarily indicative of the results which may be expected for the entire year. Reclassifications of certain prior period amounts have been made to conform to the current period presentation. The preparation of the financial statements requires management to make estimates, assumptions and judgments that affect the reported amounts of assets and liabilities. Management believes that the estimates made are reasonable, however, changes in estimates may be required if economic or other conditions develop differently from management’s expectations. Certain policies and accounting principles inherently have a greater reliance on the use of estimates, assumptions and judgments and as such have a greater possibility of producing results that could be materially different than originally reported. Management views critical accounting policies to be those which are highly dependent on subjective or complex judgments, estimates and assumptions, and where changes in those estimates and assumptions could have a significant impact on the financial statements. Management currently views the determination of the allowance for loan losses, allowance for covered loan losses and the allowance for losses on lending-related commitments, loans acquired with evidence of credit quality deterioration since origination, estimations of fair value, the valuations required for impairment testing of goodwill, the valuation and accounting for derivative instruments and income taxes as the accounting areas that require the most subjective and complex judgments, and as such could be the most subject to revision as new information becomes available. Descriptions of the Company's significant accounting policies are included in Note 1 - “Summary of Significant Accounting Policies” of the 2015 Form 10-K. |
Recent Accounting Developments |
9 Months Ended |
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Sep. 30, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Developments | Recent Accounting Developments Revenue Recognition In May 2014, the FASB issued ASU No. 2014-09, which created "Revenue from Contracts with Customers (Topic 606)," to clarify the principles for recognizing revenue and develop a common revenue standard for customer contracts. This ASU provides guidance regarding how an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also added a new subtopic to the codification, ASC 340-40, "Other Assets and Deferred Costs: Contracts with Customers" to provide guidance on costs related to obtaining and fulfilling a customer contract. Furthermore, the new standard requires disclosure of sufficient information to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. At the time ASU No. 2014-09 was issued, the guidance was effective for fiscal years beginning after December 15, 2016. In July 2015, the FASB approved a deferral of the effective date by one year, which would result in the guidance becoming effective for fiscal years beginning after December 15, 2017. The FASB has continued to issue various Updates to clarify and improve specific areas of ASU No. 2014-09. In March 2016, the FASB issued ASU No. 2016-08, "Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)," to clarify the implementation guidance within ASU No. 2014-09 surrounding principal versus agent considerations and its impact on revenue recognition. In April 2016, the FASB issued ASU No. 2016-10, "Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing," to also clarify the implementation guidance within ASU No. 2014-09 related to these two topics. In May 2016, the FASB issued ASU No. 2016-11, "Revenue Recognition (Topic 605) and Derivative and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting," to remove certain areas of SEC Staff Guidance from those specific Topics. Additionally, in May 2016, the FASB issued ASU 2016-12, "Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients," to clarify specific aspects of implementation, including the collectibility criterion, exclusion of sales taxes collected from a transaction price, noncash consideration, contract modifications and completed contracts at transition. Like ASU No. 2014-09, this guidance is effective for fiscal years beginning after December 15, 2017. The Company is currently evaluating the impact of adopting this new guidance on the consolidated financial statements. Extraordinary and Unusual Items In January 2015, the FASB issued ASU No. 2015-01, “Income Statement - Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items,” to eliminate the concept of extraordinary items related to separately classifying, presenting and disclosing certain events and transactions that meet the criteria for that concept. This guidance was effective for fiscal years beginning after December 15, 2015 and did not have a material impact on the Company’s consolidated financial statements. Consolidation In February 2015, the FASB issued ASU No. 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis,” which changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. This guidance was effective for fiscal years beginning after December 15, 2015 and did not have a material impact on the Company's consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-17, "Consolidation (Topic 810): Interest Held through Related Parties That Are under Common Control," to amend guidance from ASU No. 2015-02 regarding how a reporting entity treats indirect interests in a variable interest entity ("VIE") held through related parties under common control when determining whether the reporting entity is the primary beneficiary of such VIE. This guidance is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, and is to be applied under a retrospective approach. The Company does not expect this guidance to have a material impact on the Company's consolidated financial statements. Debt Issuance Costs In April 2015, the FASB issued ASU No. 2015-03, "Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs," to clarify the presentation of debt issuance costs within the balance sheet. This ASU requires that an entity present debt issuance costs related to a recognized debt liability on the balance sheet as a direct deduction from the carrying amount of that debt liability, not as a separate asset. The ASU does not affect the current guidance for the recognition and measurement for these debt issuance costs. Additionally, in August 2015, the FASB issued ASU No. 2015-15, "Interest - Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements (Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting)," to further clarify the presentation of debt issuance costs related to line-of-credit agreements. This ASU states the SEC would not object to an entity deferring and presenting debt issuance costs related to line-of-credit agreements as an asset on the balance sheet and subsequently amortizing these costs ratably over the term of the agreement, regardless of any outstanding borrowing under the line-of-credit agreement. This guidance was effective for fiscal years beginning after December 15, 2015 and was applied retrospectively within the Company’s consolidated financial statements. For December 31, 2015 and September 30, 2015, the Company reclassified as a direct reduction to the related debt balance $7.8 million and $8.7 million, respectively, of debt issuance costs that were previously presented as accrued interest receivable and other assets on the Consolidated Statements of Condition. Business Combinations In September 2015, the FASB issued ASU No. 2015-16, "Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments," to simplify the accounting for subsequent adjustments made to provisional amounts recognized at the acquisition date of a business combination. This ASU eliminates the requirement to retrospectively account for these adjustment for all prior periods impacted. The acquirer is required to recognize these adjustments identified during the measurement period in the reporting period in which the adjustment amount is determined. Additionally, the ASU requires an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings that would have been recorded in previous reporting periods if the adjustment had been recognized at the acquisition date. This guidance was effective for fiscal years beginning after December 15, 2015 and did not have a material impact on the Company’s consolidated financial statements. Financial Instruments In January 2016, the FASB issued ASU No. 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities," to improve the accounting for financial instruments. This ASU requires equity investments with readily determinable fair values to be measured at fair value with changes recognized in net income regardless of classification. For equity investments without a readily determinable fair value, the value of the investment would be measured at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer instead of fair value, unless a qualitative assessment indicates impairment. Additionally, this ASU requires the separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements. This guidance is effective for fiscal years beginning after December 15, 2017 and is to be applied prospectively with a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The Company is currently evaluating the impact of adopting this new guidance on the consolidated financial statements. Leases In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)," to improve transparency and comparability across entities regarding leasing arrangements. This ASU requires the recognition of a separate lease liability representing the required lease payments over the lease term and a separate lease asset representing the right to use the underlying asset during the same lease term. Additionally, this ASU provides clarification regarding the identification of certain components of contracts that would represent a lease as well as requires additional disclosures to the notes of the financial statements. This guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and is to be applied under a modified retrospective approach, including the option to apply certain practical expedients. The Company is currently evaluating the impact of adopting this new guidance on the consolidated financial statements. Derivatives In March 2016, the FASB issued ASU No. 2016-05, "Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships," to clarify guidance surrounding the effect on an existing hedging relationship of a change in the counterparty to a derivative instrument that has been designated as a hedging instrument. This ASU states that a change in counterparty to such derivative instrument does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. This guidance is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, and is to be applied either under a prospective or a modified retrospective approach. The Company does not expect this guidance to have a material impact on the Company's consolidated financial statements. Equity Method Investments In March 2016, the FASB issued ASU No. 2016-07, "Investments - Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting," to simplify the accounting for investments qualifying for the use of the equity method of accounting. This ASU eliminates the requirement to retroactively adopt the equity method of accounting when an investment qualifies for such method as a result of an increase in the level of ownership interest or degree of influence. The ASU requires the equity method investor add the cost of acquiring the additional interest to the current basis and adopt the equity method of accounting as of that date going forward. Additionally, for available-for-sale equity securities that become qualified for equity method accounting, the ASU requires the related unrealized holding gains or losses included in accumulated other comprehensive income be recognized in earnings at the date the investment qualifies for such accounting. This guidance is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, and is to be applied under a prospective approach. The Company does not expect this guidance to have a material impact on the Company's consolidated financial statements. Employee Share-Based Compensation In March 2016, the FASB issued ASU No. 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting," to simplify the accounting for several areas of share-based payment transactions. This includes the recognition of all excess tax benefits and tax deficiencies as income tax expense instead of surplus, the classification on the statement of cash flows of excess tax benefits and taxes paid when the employer withholds shares for tax-withholding purposes. Additionally, related to forfeitures, the ASU provides the option to estimate the number of awards that are expected to vest or account for forfeitures as they occur. This guidance is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, and is to be applied under a modified retrospective and retrospective approach based upon the specific amendment of the ASU. The Company is currently evaluating the impact of adopting this new guidance on the consolidated financial statements. Allowance for Credit Losses In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments," to replace the current incurred loss methodology for recognizing credit losses, which delays recognition until it is probable a loss has been incurred, with a methodology that reflects an estimate of all expected credit losses and considers additional reasonable and supportable forecasted information when determining credit loss estimates. This impacts the calculation of the allowance for credit losses for all financial assets measured under the amortized cost basis, including purchased credit impaired ("PCI") loans at the time of and subsequent to acquisition. Additionally, credit losses related to available-for-sale debt securities would be recorded through the allowance for credit losses and not as a direct adjustment to the amortized cost of the securities. This guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, and is to be applied under a modified retrospective approach. The Company is currently evaluating the impact of adopting this new guidance on the consolidated financial statements as well as the impact on current systems and processes. Statement of Cash Flows In August 2016, the FASB issued ASU No. 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the FASB Emerging Issues Task Force)," to clarify the presentation of specific types of cash flow receipts and payments, including the payment of debt prepayment or debt extinguishment costs, contingent consideration cash payments paid subsequent to the acquisition date and proceeds from settlement of BOLI policies. This guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and is to be applied under a retrospective approach, if practicable. The Company does not expect this guidance to have a material impact on the Company's consolidated financial statements. Income Taxes In October 2016, the FASB issued ASU No. 2016-16, "Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory," to improve the accounting for intra-entity transfers of assets other than inventory. This ASU allows the recognition of current and deferred income taxes for such transfers prior to the subsequent sale of the transferred assets to an outside party. Initial recognition of current and deferred income taxes is currently prohibited for intra-entity transfers of assets other than inventory. This guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and is to be applied under a modified retrospective approach through cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The Company is currently evaluating the impact of adopting this new guidance on the consolidated financial statements. |
Business Combinations |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations | Business Combinations Non-FDIC Assisted Bank Acquisitions On August 19, 2016, the Company, through its wholly-owned subsidiary Lake Forest Bank & Trust Company ("Lake Forest Bank"), acquired approximately $560.9 million in performing loans and related relationships from an affiliate of GE Capital Franchise Finance. The loans are to franchise operators (primarily quick service restaurant concepts) in the Midwest and in the Western portion of the United States. On March 31, 2016, the Company acquired Generations Bancorp, Inc ("Generations"). Generations was the parent company of Foundations Bank, which had one banking location in Pewaukee, Wisconsin. Foundations Bank was merged into the Company's wholly-owned subsidiary Town Bank. The Company acquired assets with a fair value of approximately $131.0 million, including approximately $67.4 million of loans, and assumed deposits with a fair value of approximately $100.2 million. Additionally, the Company recorded goodwill of $11.5 million on the acquisition. On July 24, 2015, the Company acquired Community Financial Shares, Inc ("CFIS"). CFIS was the parent company of Community Bank - Wheaton/Glen Ellyn ("CBWGE"), which had four banking locations. CBWGE was merged into the Company's wholly-owned subsidiary Wheaton Bank & Trust Company ("Wheaton Bank"). The Company acquired assets with a fair value of approximately $350.5 million, including approximately $159.5 million of loans, and assumed deposits with a fair value of approximately $290.0 million. Additionally, the Company recorded goodwill of $27.6 million on the acquisition. On July 17, 2015, the Company acquired Suburban Illinois Bancorp, Inc. ("Suburban"). Suburban was the parent company of Suburban Bank & Trust Company ("SBT"), which operated ten banking locations. SBT was merged into the Company's wholly-owned subsidiary Hinsdale Bank & Trust Company ("Hinsdale Bank"). The Company acquired assets with a fair value of approximately $494.7 million, including approximately $257.8 million of loans, and assumed deposits with a fair value of approximately $416.7 million. Additionally, the Company recorded goodwill of $18.6 million on the acquisition. On July 1, 2015, the Company, through its wholly-owned subsidiary Wintrust Bank, acquired North Bank, which had two banking locations. The Company acquired assets with a fair value of $117.9 million, including approximately $51.6 million of loans, and assumed deposits with a fair value of approximately $101.0 million. Additionally, the Company recorded goodwill of $6.7 million on the acquisition. On January 16, 2015, the Company acquired Delavan Bancshares, Inc. ("Delavan"). Delavan was the parent company of Community Bank CBD, which had four banking locations. Community Bank CBD was merged into the Company's wholly-owned subsidiary Town Bank. The Company acquired assets with a fair value of approximately $224.1 million, including approximately $128.0 million of loans, and assumed liabilities with a fair value of approximately $186.4 million, including approximately $170.2 million of deposits. Additionally the Company recorded goodwill of $16.8 million on the acquisition. FDIC-Assisted Transactions Since 2010, the Company acquired the banking operations, including the acquisition of certain assets and the assumption of liabilities, of nine financial institutions in FDIC-assisted transactions. Loans comprise the majority of the assets acquired in nearly all of these FDIC-assisted transactions, most of which are subject to loss sharing agreements with the FDIC whereby the FDIC has agreed to reimburse the Company for 80% of losses incurred on the purchased loans, other real estate owned (“OREO”), and certain other assets. Additionally, clawback provisions within these loss share agreements with the FDIC require the Company to reimburse the FDIC in the event that actual losses on covered assets are lower than the original loss estimates agreed upon with the FDIC with respect of such assets in the loss share agreements. The Company refers to the loans subject to these loss sharing agreements as “covered loans” and uses the term “covered assets” to refer to covered loans, covered OREO and certain other covered assets. The agreements with the FDIC require that the Company follow certain servicing procedures or risk losing the FDIC reimbursement of covered asset losses. The loans covered by the loss sharing agreements are classified and presented as covered loans and the estimated reimbursable losses are recorded as an FDIC indemnification asset or other liability in the Consolidated Statements of Condition. The Company recorded the acquired assets and liabilities at their estimated fair values at the acquisition date. The fair value for loans reflected expected credit losses at the acquisition date. Therefore, the Company will only recognize a provision for credit losses and charge-offs on the acquired loans for any further credit deterioration subsequent to the acquisition date. See Note 7 — Allowance for Loan Losses, Allowance for Losses on Lending-Related Commitments and Impaired Loans for further discussion of the allowance on covered loans. The loss share agreements with the FDIC cover realized losses on loans, foreclosed real estate and certain other assets and require the Company to record loss share assets and liabilities that are measured separately from the loan portfolios because they are not contractually embedded in the loans and are not transferable with the loans should the Company choose to dispose of them. Fair values at the acquisition dates were estimated based on projected cash flows available for loss share based on the credit adjustments estimated for each loan pool and the loss share percentages. The loss share assets and liabilities are recorded as FDIC indemnification assets and other liabilities, respectively, on the Consolidated Statements of Condition. Subsequent to the acquisition date, reimbursements received from the FDIC for actual incurred losses will reduce the FDIC indemnification assets. Reductions to expected losses, to the extent such reductions to expected losses are the result of an improvement to the actual or expected cash flows from the covered assets, will also reduce the FDIC indemnification assets and, if necessary, increase any loss share liability when necessary reductions exceed the current value of the FDIC indemnification assets. In accordance with the clawback provision noted above, the Company may be required to reimburse the FDIC when actual losses are less than certain thresholds established for each lose share agreement. The balance of these estimated reimbursements in accordance with clawback provisions and any related amortization are adjusted periodically for changes in the expected losses on covered assets. On the Consolidated Statements of Condition, estimated reimbursements from clawback provisions are recorded as a reduction to the FDIC indemnification asset or, if necessary, an increase to the loss share liability, which is included within accrued interest payable and other liabilities. Although these assets are contractual receivables from the FDIC and these liabilities are contractual payables to the FDIC, there are no contractual interest rates. Additional expected losses, to the extent such expected losses result in recognition of an allowance for covered loan losses, will increase the FDIC indemnification asset or reduce the FDIC indemnification liability. The corresponding amortization is recorded as a component of non-interest income on the Consolidated Statements of Income. The following table summarizes the activity in the Company’s FDIC indemnification (liability) asset during the periods indicated:
PCI Loans Purchased loans acquired in a business combination are recorded at estimated fair value on their purchase date. Expected future cash flows at the purchase date in excess of the fair value of loans are recorded as interest income over the life of the loans if the timing and amount of the future cash flows is reasonably estimable (“accretable yield”). The difference between contractually required payments and the cash flows expected to be collected at acquisition is referred to as the non-accretable difference and represents probable losses in the portfolio. In determining the acquisition date fair value of PCI loans, and in subsequent accounting, the Company aggregates these purchased loans into pools of loans by common risk characteristics, such as credit risk rating and loan type. Subsequent to the purchase date, increases in cash flows over those expected at the purchase date are recognized as interest income prospectively. Subsequent decreases to the expected cash flows will generally result in a provision for loan losses. The Company purchased a portfolio of life insurance premium finance receivables in 2009. These purchased life insurance premium finance receivables are valued on an individual basis with the accretable component being recognized into interest income using the effective yield method over the estimated remaining life of the loans. The non-accretable portion is evaluated each quarter and if the loans’ credit related conditions improve, a portion is transferred to the accretable component and accreted over future periods. In the event a specific loan prepays in whole, any remaining accretable and non-accretable discount is recognized in income immediately. If credit related conditions deteriorate, an allowance related to these loans will be established as part of the provision for credit losses. See Note 6—Loans, for additional information on PCI loans. |
Cash and Cash Equivalents |
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Sep. 30, 2016 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of the Consolidated Statements of Cash Flows, the Company considers cash and cash equivalents to include cash on hand, cash items in the process of collection, non-interest bearing amounts due from correspondent banks, federal funds sold and securities purchased under resale agreements with original maturities of three months or less. |
Investment Securities |
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Available-for-sale Securities and Held-to-maturity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities | Investment Securities The following tables are a summary of the available-for-sale and held-to-maturity securities portfolios as of the dates shown:
In the fourth quarter of 2015, the Company transferred $862.7 million of investment securities with an unrealized loss of $14.4 million from the available-for-sale classification to the held-to-maturity classification. No investment securities were transferred from the available-for-sale classification to the held-to-maturity classification in the first nine months of 2016. The following table presents the portion of the Company’s available-for-sale and held-to-maturity securities portfolios which has gross unrealized losses, reflecting the length of time that individual securities have been in a continuous unrealized loss position at September 30, 2016:
The Company conducts a regular assessment of its investment securities to determine whether securities are other-than-temporarily impaired considering, among other factors, the nature of the securities, credit ratings or financial condition of the issuer, the extent and duration of the unrealized loss, expected cash flows, market conditions and the Company’s ability to hold the securities through the anticipated recovery period. The Company does not consider securities with unrealized losses at September 30, 2016 to be other-than-temporarily impaired. The Company does not intend to sell these investments and it is more likely than not that the Company will not be required to sell these investments before recovery of the amortized cost bases, which may be the maturity dates of the securities. The unrealized losses within each category have occurred as a result of changes in interest rates, market spreads and market conditions subsequent to purchase. Securities with continuous unrealized losses existing for more than twelve months were primarily corporate notes and mortgage-backed securities. Unrealized losses recognized on corporate notes and mortgage-backed securities are the result of increases in yields for similar types of securities. The following table provides information as to the amount of gross gains and gross losses realized and proceeds received through the sale or call of investment securities:
The amortized cost and fair value of securities as of September 30, 2016, December 31, 2015 and September 30, 2015, by contractual maturity, are shown in the following table. Contractual maturities may differ from actual maturities as borrowers may have the right to call or repay obligations with or without call or prepayment penalties. Mortgage-backed securities are not included in the maturity categories in the following maturity summary as actual maturities may differ from contractual maturities because the underlying mortgages may be called or prepaid without penalties:
Securities having a fair value of $1.4 billion at September 30, 2016 as well as securities having a fair value of $1.2 billion and $1.3 billion at December 31, 2015 and September 30, 2015, respectively, were pledged as collateral for public deposits, trust deposits, Federal Home Loan Bank ("FHLB") advances, securities sold under repurchase agreements and derivatives. At September 30, 2016, there were no securities of a single issuer, other than U.S. Government-sponsored agency securities, which exceeded 10% of shareholders’ equity. |
Loans |
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Loans and Leases Receivable Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans | Loans The following table shows the Company’s loan portfolio by category as of the dates shown:
The Company’s loan portfolio is generally comprised of loans to consumers and small to medium-sized businesses located within the geographic market areas that the banks serve. The premium finance receivables portfolios are made to customers throughout the United States and Canada. The Company strives to maintain a loan portfolio that is diverse in terms of loan type, industry, borrower and geographic concentrations. Such diversification reduces the exposure to economic downturns that may occur in different segments of the economy or in different industries. Certain premium finance receivables are recorded net of unearned income. The unearned income portions of such premium finance receivables were $64.4 million at September 30, 2016, $56.7 million at December 31, 2015 and $53.4 million at September 30, 2015, respectively. Certain life insurance premium finance receivables attributable to the life insurance premium finance loan acquisition in 2009 as well as PCI loans are recorded net of credit discounts. See “Acquired Loan Information at Acquisition” below. Total loans, excluding PCI loans, include net deferred loan fees and costs and fair value purchase accounting adjustments totaling $873,000 at September 30, 2016, $(9.2) million at December 31, 2015 and $(18.8) million at September 30, 2015. The net credit balance at December 31, 2015 and September 30, 2015, is primarily the result of purchase accounting adjustments related to acquisitions in 2015. It is the policy of the Company to review each prospective credit in order to determine the appropriateness and, when required, the adequacy of security or collateral necessary to obtain when making a loan. The type of collateral, when required, will vary from liquid assets to real estate. The Company seeks to ensure access to collateral, in the event of default, through adherence to state lending laws and the Company’s credit monitoring procedures. Acquired Loan Information at Acquisition—PCI Loans As part of the Company's previous acquisitions, the Company acquired loans for which there was evidence of credit quality deterioration since origination (PCI loans) and we determined that it was probable that the Company would be unable to collect all contractually required principal and interest payments. The following table presents the unpaid principal balance and carrying value for these acquired loans:
The following table provides estimated details as of the date of acquisition on loans acquired in 2016 with evidence of credit quality deterioration since origination:
(1) Represents undiscounted expected principal and interest cash at acquisition. See Note 7—Allowance for Loan Losses, Allowance for Losses on Lending-Related Commitments and Impaired Loans for further discussion regarding the allowance for loan losses associated with PCI loans at September 30, 2016. Accretable Yield Activity - PCI Loans Changes in expected cash flows may vary from period to period as the Company periodically updates its cash flow model assumptions for PCI loans. The factors that most significantly affect the estimates of gross cash flows expected to be collected, and accordingly the accretable yield, include changes in the benchmark interest rate indices for variable-rate products and changes in prepayment assumptions and loss estimates. The following table provides activity for the accretable yield of PCI loans:
Accretion to interest income accounted for under ASC 310-30 totaled $6.4 million and $5.9 million in the third quarter of 2016 and 2015, respectively. For the nine months ended Septemebr 30, 2016 and 2015, the Company recorded accretion to interest income of $17.1 million and $18.4 million, respectively. These amounts include accretion from both covered and non-covered loans, and are both included within interest and fees on loans in the Consolidated Statements of Income. |
Allowance for Loan Losses, Allowance for Losses on Lending-Related Commitments and Impaired Loans |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Loan Losses, Allowance for Losses on Lending-Related Commitments and Impaired Loans | Allowance for Loan Losses, Allowance for Losses on Lending-Related Commitments and Impaired Loans The tables below show the aging of the Company’s loan portfolio at September 30, 2016, December 31, 2015 and September 30, 2015:
The Company's ability to manage credit risk depends in large part on our ability to properly identify and manage problem loans. To do so, the Company operates a credit risk rating system under which our credit management personnel assign a credit risk rating (1 to 10 rating) to each loan at the time of origination and review loans on a regular basis. Each loan officer is responsible for monitoring his or her loan portfolio, recommending a credit risk rating for each loan in his or her portfolio and ensuring the credit risk ratings are appropriate. These credit risk ratings are then ratified by the bank’s chief credit officer and/or concurrence credit officer. Credit risk ratings are determined by evaluating a number of factors including: a borrower’s financial strength, cash flow coverage, collateral protection and guarantees. The Company’s Problem Loan Reporting system automatically includes all loans with credit risk ratings of 6 through 9. This system is designed to provide an on-going detailed tracking mechanism for each problem loan. Once management determines that a loan has deteriorated to a point where it has a credit risk rating of 6 or worse, the Company’s Managed Asset Division performs an overall credit and collateral review. As part of this review, all underlying collateral is identified and the valuation methodology is analyzed and tracked. As a result of this initial review by the Company’s Managed Asset Division, the credit risk rating is reviewed and a portion of the outstanding loan balance may be deemed uncollectible or an impairment reserve may be established. The Company’s impairment analysis utilizes an independent re-appraisal of the collateral (unless such a third-party evaluation is not possible due to the unique nature of the collateral, such as a closely-held business or thinly traded securities). In the case of commercial real estate collateral, an independent third party appraisal is ordered by the Company’s Real Estate Services Group to determine if there has been any change in the underlying collateral value. These independent appraisals are reviewed by the Real Estate Services Group and sometimes by independent third party valuation experts and may be adjusted depending upon market conditions. Through the credit risk rating process, loans are reviewed to determine if they are performing in accordance with the original contractual terms. If the borrower has failed to comply with the original contractual terms, further action may be required by the Company, including a downgrade in the credit risk rating, movement to non-accrual status, a charge-off or the establishment of a specific impairment reserve. If we determine that a loan amount, or portion thereof, is uncollectible, the loan’s credit risk rating is immediately downgraded to an 8 or 9 and the uncollectible amount is charged-off. Any loan that has a partial charge-off continues to be assigned a credit risk rating of an 8 or 9 for the duration of time that a balance remains outstanding. The Company undertakes a thorough and ongoing analysis to determine if additional impairment and/or charge-offs are appropriate and to begin a workout plan for the credit to minimize actual losses. If, based on current information and events, it is probable that the Company will be unable to collect all amounts due to it according to the contractual terms of the loan agreement, a specific impairment reserve is established. In determining the appropriate charge-off for collateral-dependent loans, the Company considers the results of appraisals for the associated collateral. Non-performing loans include all non-accrual loans (8 and 9 risk ratings) as well as loans 90 days past due and still accruing interest, excluding PCI and covered loans. The remainder of the portfolio is considered performing under the contractual terms of the loan agreement. The following table presents the recorded investment based on performance of loans by class, excluding covered loans, per the most recent analysis at September 30, 2016, December 31, 2015 and September 30, 2015:
A summary of activity in the allowance for credit losses by loan portfolio (excluding covered loans) for the three and nine months ended September 30, 2016 and 2015 is as follows:
A summary of activity in the allowance for covered loan losses for the three and nine months ended September 30, 2016 and 2015 is as follows:
In conjunction with FDIC-assisted transactions, the Company entered into loss share agreements with the FDIC. Additional expected losses, to the extent such expected losses result in the recognition of an allowance for loan losses, will increase the FDIC loss share asset or reduce any FDIC loss share liability. The allowance for loan losses for loans acquired in FDIC-assisted transactions is determined without giving consideration to the amounts recoverable through loss share agreements (since the loss share agreements are separately accounted for and thus presented “gross” on the balance sheet). On the Consolidated Statements of Income, the provision for credit losses is reported net of changes in the amount recoverable under the loss share agreements. Reductions to expected losses, to the extent such reductions to expected losses are the result of an improvement to the actual or expected cash flows from the covered assets, will reduce the FDIC loss share asset or increase any FDIC loss share liability. Additions to expected losses will require an increase to the allowance for covered loan losses, and a corresponding increase to the FDIC loss share asset or reduction to any FDIC loss share liability. See “FDIC-Assisted Transactions” within Note 3 – Business Combinations for more detail. Impaired Loans A summary of impaired loans, including troubled debt restructurings ("TDRs"), is as follows:
The following tables present impaired loans by loan class, excluding covered loans, for the periods ended as follows:
TDRs At September 30, 2016, the Company had $44.3 million in loans modified in TDRs. The $44.3 million in TDRs represents 89 credits in which economic concessions were granted to certain borrowers to better align the terms of their loans with their current ability to pay. The Company’s approach to restructuring loans, excluding PCI loans, is built on its credit risk rating system which requires credit management personnel to assign a credit risk rating to each loan. In each case, the loan officer is responsible for recommending a credit risk rating for each loan and ensuring the credit risk ratings are appropriate. These credit risk ratings are then reviewed and approved by the bank’s chief credit officer and/or concurrence credit officer. Credit risk ratings are determined by evaluating a number of factors including a borrower’s financial strength, cash flow coverage, collateral protection and guarantees. The Company’s credit risk rating scale is one through ten with higher scores indicating higher risk. In the case of loans rated six or worse following modification, the Company’s Managed Assets Division evaluates the loan and the credit risk rating and determines that the loan has been restructured to be reasonably assured of repayment and of performance according to the modified terms and is supported by a current, well-documented credit assessment of the borrower’s financial condition and prospects for repayment under the revised terms. A modification of a loan, excluding PCI loans, with an existing credit risk rating of 6 or worse or a modification of any other credit, which will result in a restructured credit risk rating of six or worse, must be reviewed for possible TDR classification. In that event, our Managed Assets Division conducts an overall credit and collateral review. A modification of these loans is considered to be a TDR if both (1) the borrower is experiencing financial difficulty and (2) for economic or legal reasons, the bank grants a concession to a borrower that it would not otherwise consider. The modification of a loan, excluding PCI loans, where the credit risk rating is 5 or better both before and after such modification is not considered to be a TDR. Based on the Company’s credit risk rating system, it considers that borrowers whose credit risk rating is 5 or better are not experiencing financial difficulties and therefore, are not considered TDRs. All credits determined to be a TDR will continue to be classified as a TDR in all subsequent periods, unless the borrower has been in compliance with the loan’s modified terms for a period of six months (including over a calendar year-end) and the current interest rate represents a market rate at the time of restructuring. The Managed Assets Division, in consultation with the respective loan officer, determines whether the modified interest rate represented a current market rate at the time of restructuring. Using knowledge of current market conditions and rates, competitive pricing on recent loan originations, and an assessment of various characteristics of the modified loan (including collateral position and payment history), an appropriate market rate for a new borrower with similar risk is determined. If the modified interest rate meets or exceeds this market rate for a new borrower with similar risk, the modified interest rate represents a market rate at the time of restructuring. Additionally, before removing a loan from TDR classification, a review of the current or previously measured impairment on the loan and any concerns related to future performance by the borrower is conducted. If concerns exist about the future ability of the borrower to meet its obligations under the loans based on a credit review by the Managed Assets Division, the TDR classification is not removed from the loan. TDRs are reviewed at the time of the modification and on a quarterly basis to determine if a specific reserve is necessary. The carrying amount of the loan is compared to the expected payments to be received, discounted at the loan's original rate, or for collateral dependent loans, to the fair value of the collateral. Any shortfall is recorded as a specific reserve. The Company, in accordance with ASC 310-10, continues to individually measure impairment of these loans after the TDR classification is removed. Each TDR was reviewed for impairment at September 30, 2016 and approximately $2.8 million of impairment was present and appropriately reserved for through the Company’s normal reserving methodology in the Company’s allowance for loan losses. For TDRs in which impairment is calculated by the present value of future cash flows, the Company records interest income representing the decrease in impairment resulting from the passage of time during the respective period, which differs from interest income from contractually required interest on these specific loans. During both the three months ended September 30, 2016 and 2015, the Company recorded $98,000 interest income representing this decrease in impairment. For the nine months ended September 30, 2016 and 2015, the Company recorded $323,000 and $385,000, respectively, in interest income. TDRs may arise in which, due to financial difficulties experienced by the borrower, the Company obtains through physical possession one or more collateral assets in satisfaction of all or part of an existing credit. Once possession is obtained, the Company reclassifies the appropriate portion of the remaining balance of the credit from loans to OREO, which is included within other assets in the Consolidated Statements of Condition. For any residential real estate property collateralizing a consumer mortgage loan, the Company is considered to possess the related collateral only if legal title is obtained upon completion of foreclosure, or the borrower conveys all interest in the residential real estate property to the Company through completion of a deed in lieu of foreclosure or similar legal agreement. Excluding covered OREO, at September 30, 2016, the Company had $11.7 million of foreclosed residential real estate properties included within OREO. The tables below present a summary of the post-modification balance of loans restructured during the three and nine months ended September 30, 2016 and 2015, respectively, which represent TDRs:
During the three months ended September 30, 2016, two loans totaling $71,000 were determined to be TDRs, compared to one loan totaling $222,000 in the same period of 2015. Of these loans extended at below market terms, the weighted average extension had a term of approximately 22 months during the quarter ended September 30, 2016 compared to 214 months for the quarter ended September 30, 2015. Further, the weighted average decrease in the stated interest rate for loans with a reduction of interest rate during the period was approximately 150 basis points and 338 basis points during the three months ending September 30, 2016 and 2015, respectively. Additionally, no principal balances were forgiven in the third quarter of 2016 or 2015.
During the nine months ended September 30, 2016, 15 loans totaling $9.4 million were determined to be TDRs, compared to ten loans totaling $1.8 million in the same period of 2015. Of these loans extended at below market terms, the weighted average extension had a term of approximately six months during the nine months ended September 30, 2016 compared to 49 months for the nine months ended September 30, 2015. Further, the weighted average decrease in the stated interest rate for loans with a reduction of interest rate during the period was approximately 30 basis points and 358 basis points for the year-to-date periods September 30, 2016 and 2015, respectively. Interest-only payment terms were approximately six months during the nine months ending September 30, 2016 compared to 28 months during the same period of 2015. Additionally, $300,000 of principal balances were forgiven in the first nine months of 2016 compared to no balances forgiven during the same period of 2015. The following table presents a summary of all loans restructured in TDRs during the twelve months ended September 30, 2016 and 2015, and such loans which were in payment default under the restructured terms during the respective periods below:
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Goodwill and Other Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets A summary of the Company’s goodwill assets by business segment is presented in the following table:
The community banking segment's goodwill increased $13.0 million in the first nine months of 2016 primarily as a result of the acquisition of Generations. The specialty finance segment's goodwill increased $1.2 million in the first nine months of 2016 as a result of foreign currency translation adjustments related to the Canadian acquisitions. At June 30, 2016, the Company utilized a qualitative approach for its annual goodwill impairment test of the community banking segment and determined that it is not more likely than not than an impairment existed at that time. The annual goodwill impairment tests of the specialty finance and wealth management segments will be conducted at December 31, 2016. At each reporting date between annual goodwill impairment tests, the Company considers potential indicators of impairment. As of September 30, 2016, the Company identified no such indicators of goodwill impairment. A summary of finite-lived intangible assets as of the dates shown and the expected amortization as of September 30, 2016 is as follows:
The core deposit intangibles recognized in connection with prior bank acquisitions are amortized over a ten-year period on an accelerated basis. The customer list intangibles recognized in connection with the purchase of life insurance premium finance assets in 2009 are being amortized over an 18-year period on an accelerated basis while the customer list intangibles recognized in connection with prior acquisitions within the wealth management segment are being amortized over a ten-year period on a straight-line basis. Total amortization expense associated with finite-lived intangibles totaled approximately $3.6 million and $3.3 million for the nine months ended September 30, 2016 and 2015, respectively. |
Deposits |
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Deposits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits | Deposits The following table is a summary of deposits as of the dates shown:
Wealth management deposits represent deposit balances (primarily money market accounts) at the Company’s subsidiary banks from brokerage customers of Wayne Hummer Investments, trust and asset management customers of Company and brokerage customers from unaffiliated companies. |
FHLB Advances, Other Borrowings and Subordinated Notes |
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FHLB Advances, Other Borrowings and Subordinated Notes | FHLB Advances, Other Borrowings and Subordinated Notes The following table is a summary of notes payable, FHLB advances, other borrowings and subordinated notes as of the dates shown:
FHLB Advances FHLB advances consist of obligations of the banks and are collateralized by qualifying residential real estate and home equity loans and certain securities. FHLB advances are stated at par value of the debt adjusted for unamortized prepayment fees paid at the time of prior restructurings of FHLB advances and unamortized fair value adjustments recorded in connection with advances acquired through acquisitions. Notes Payable At September 30, 2016, notes payable represented a $56.2 million term facility ("Term Facility"), which is part of a $150.0 million loan agreement ("Credit Agreement") with unaffiliated banks dated December 15, 2014. The Credit Agreement consists of the Term Facility with an original outstanding balance of $75.0 million and a $75.0 million revolving credit facility ("Revolving Credit Facility"). At September 30, 2016, the Company had a balance of $56.2 million compared to $67.4 million at December 31, 2015 and $71.3 million at September 30, 2015 under the Term Facility. The Term Facility is stated at par of the current outstanding balance of the debt adjusted for unamortized costs paid by the Company in relation to the debt issuance. The Company was contractually required to borrow the entire amount of the Term Facility on June 15, 2015 and all such borrowings must be repaid by June 15, 2020. Beginning September 30, 2015, the Company was required to make straight-line quarterly amortizing payments on the Term Facility. At September 30, 2016, December 31, 2015 and September 30, 2015, the Company had no outstanding balance under the Revolving Credit Facility. As no outstanding balance exists on the Revolving Credit Facility, unamortized costs paid by the Company in relation to the issuance of this debt are classified in other assets on the Consolidated Statements of Condition. In December 2015, the Company amended the Credit Agreement, effectively extending the maturity date on the Revolving Credit Facility from December 14, 2015 to December 12, 2016. Borrowings under the Credit Agreement that are considered “Base Rate Loans” bear interest at a rate equal to the sum of (1) 50 basis points (in the case of a borrowing under the Revolving Credit Facility) or 75 basis points (in the case of a borrowing under the Term Facility) plus (2) the highest of (a) the federal funds rate plus 50 basis points, (b) the lender's prime rate, and (c) the Eurodollar Rate (as defined below) that would be applicable for an interest period of one month plus 100 basis points. Borrowings under the agreement that are considered “Eurodollar Rate Loans” bear interest at a rate equal to the sum of (1) 150 basis points (in the case of a borrowing under the Revolving Credit Facility) or 175 basis points (in the case of a borrowing under the Term Facility) plus (2) the LIBOR rate for the applicable period, as adjusted for statutory reserve requirements for eurocurrency liabilities (the “Eurodollar Rate”). A commitment fee is payable quarterly equal to 0.20% of the actual daily amount by which the lenders' commitment under the Revolving Credit Facility exceeded the amount outstanding under such facility. Borrowings under the Credit Agreement are secured by pledges of and first priority perfected security interests in the Company's equity interest in its bank subsidiaries and contain several restrictive covenants, including the maintenance of various capital adequacy levels, asset quality and profitability ratios, and certain restrictions on dividends and other indebtedness. At September 30, 2016, the Company was in compliance with all such covenants. The Revolving Credit Facility and the Term Facility are available to be utilized, as needed, to provide capital to fund continued growth at the Company’s banks and to serve as an interim source of funds for acquisitions, common stock repurchases or other general corporate purposes. Short-term Borrowings Short-term borrowings include securities sold under repurchase agreements and federal funds purchased. These borrowings totaled $33.2 million at September 30, 2016 compared to $63.9 million at December 31, 2015 and $57.6 million at September 30, 2015. At September 30, 2016, December 31, 2015 and September 30, 2015, securities sold under repurchase agreements represent $33.2 million, $58.9 million and $57.6 million, respectively, of customer sweep accounts in connection with master repurchase agreements at the banks. The Company records securities sold under repurchase agreements at their gross value and does not offset positions on the Consolidated Statements of Condition. As of September 30, 2016, the Company had pledged securities related to its customer balances in sweep accounts of $44.1 million. Securities pledged for customer balances in sweep accounts and short-term borrowings from brokers are maintained under the Company’s control and consist of U.S. Government agency, mortgage-backed and corporate securities. These securities are included in the available-for-sale and held-to-maturity securities portfolios as reflected on the Company’s Consolidated Statements of Condition. The following is a summary of these securities pledged as of September 30, 2016 disaggregated by investment category and maturity, and reconciled to the outstanding balance of securities sold under repurchase agreements:
Other Borrowings Other borrowings at September 30, 2016 represent a fixed-rate promissory note issued by the Company in August 2012 ("Fixed-Rate Promissory Note") related to and secured by an office building owned by the Company, and non-recourse notes issued by the Company to other banks related to certain capital leases. At September 30, 2016, the Fixed-Rate Promissory Note had a balance of $17.8 million compared to a balance of $18.2 million and $18.3 million at December 31, 2015 and September 30, 2015, respectively. Under the Fixed-Rate Promissory Note, the Company will make monthly principal payments and pay interest at a fixed rate of 3.75% until maturity on September 1, 2017. At September 30, 2016 and December 31, 2015, the non-recourse notes related to certain capital leases totaled $519,000 and $732,000, respectively. Secured Borrowings Secured borrowings at September 30, 2016 primarily represents transactions to sell an undivided co-ownership interest in all receivables owed to the Company's subsidiary, FIFC Canada. In December 2014, FIFC Canada sold such interest to an unrelated third party in exchange for a cash payment of approximately C$150 million pursuant to a receivables purchase agreement (“Receivables Purchase Agreement”). The Receivables Purchase Agreement was amended in December 2015, effectively extending the maturity date from December 15, 2015 to December 15, 2017. Additionally, at that time, the unrelated third party paid an additional C$10 million, which increased the total payments to C$160 million. These transactions were not considered sales of receivables and, as such, related proceeds received are reflected on the Company’s Consolidated Statements of Condition as a secured borrowing owed to the unrelated third party, net of unamortized debt issuance costs, and translated to the Company’s reporting currency as of the respective date. At September 30, 2016, the translated balance of the secured borrowing totaled $121.9 million compared to $115.5 million at December 31, 2015 and $112.6 million at September 30, 2015. Additionally, the interest rate under the Receivables Purchase Agreement at September 30, 2016 was 1.6121%. Subordinated Notes At September 30, 2016, the Company had outstanding subordinated notes totaling $138.9 million compared to $138.9 million and $138.8 million outstanding at December 31, 2015 and September 30, 2015, respectively. The notes have a stated interest rate of 5.00% and mature in June 2024. These notes are stated at par adjusted for unamortized costs paid related to the issuance of this debt. |
Junior Subordinated Debentures |
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Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Junior Subordinated Debentures | Junior Subordinated Debentures As of September 30, 2016, the Company owned 100% of the common securities of eleven trusts, Wintrust Capital Trust III, Wintrust Statutory Trust IV, Wintrust Statutory Trust V, Wintrust Capital Trust VII, Wintrust Capital Trust VIII, Wintrust Capital Trust IX, Northview Capital Trust I, Town Bankshares Capital Trust I, First Northwest Capital Trust I, Suburban Illinois Capital Trust II, and Community Financial Shares Statutory Trust II (the “Trusts”) set up to provide long-term financing. The Northview, Town, First Northwest, Suburban, and Community Financial Shares capital trusts were acquired as part of the acquisitions of Northview Financial Corporation, Town Bankshares, Ltd., First Northwest Bancorp, Inc., Suburban and CFIS, respectively. The Trusts were formed for purposes of issuing trust preferred securities to third-party investors and investing the proceeds from the issuance of the trust preferred securities and common securities solely in junior subordinated debentures issued by the Company (or assumed by the Company in connection with an acquisition), with the same maturities and interest rates as the trust preferred securities. The junior subordinated debentures are the sole assets of the Trusts. In each Trust, the common securities represent approximately 3% of the junior subordinated debentures and the trust preferred securities represent approximately 97% of the junior subordinated debentures. In January 2016, the Company acquired $15.0 million of the $40.0 million of trust preferred securities issued by Wintrust Capital Trust VIII from a third-party investor. The purchase effectively extinguished $15.0 million of junior subordinated debentures related to Wintrust Capital Trust VIII and resulted in a $4.3 million gain from the early extinguishment of debt. The Trusts are reported in the Company’s consolidated financial statements as unconsolidated subsidiaries. Accordingly, in the Consolidated Statements of Condition, the junior subordinated debentures issued by the Company to the Trusts are reported as liabilities and the common securities of the Trusts, all of which are owned by the Company, are included in available-for-sale securities. The following table provides a summary of the Company’s junior subordinated debentures as of September 30, 2016. The junior subordinated debentures represent the par value of the obligations owed to the Trusts.
The junior subordinated debentures totaled $253.6 million at September 30, 2016 compared to $268.6 million at December 31, 2015 and September 30, 2015. The interest rates on the variable rate junior subordinated debentures are based on the three-month LIBOR rate and reset on a quarterly basis. At September 30, 2016, the weighted average contractual interest rate on the junior subordinated debentures was 3.02%. The Company entered into interest rate swaps and caps to hedge the variable cash flows on certain junior subordinated debentures. The hedge-adjusted rate on the junior subordinated debentures as of September 30, 2016, was 3.71%. Distributions on the common and preferred securities issued by the Trusts are payable quarterly at a rate per annum equal to the interest rates being earned by the Trusts on the junior subordinated debentures. Interest expense on the junior subordinated debentures is deductible for income tax purposes. The Company has guaranteed the payment of distributions and payments upon liquidation or redemption of the trust preferred securities, in each case to the extent of funds held by the Trusts. The Company and the Trusts believe that, taken together, the obligations of the Company under the guarantees, the junior subordinated debentures, and other related agreements provide, in the aggregate, a full, irrevocable and unconditional guarantee, on a subordinated basis, of all of the obligations of the Trusts under the trust preferred securities. Subject to certain limitations, the Company has the right to defer the payment of interest on the junior subordinated debentures at any time, or from time to time, for a period not to exceed 20 consecutive quarters. The trust preferred securities are subject to mandatory redemption, in whole or in part, upon repayment of the junior subordinated debentures at maturity or their earlier redemption. The junior subordinated debentures are redeemable in whole or in part prior to maturity at any time after the earliest redemption dates shown in the table, and earlier at the discretion of the Company if certain conditions are met, and, in any event, only after the Company has obtained Federal Reserve Bank ("FRB") approval, if then required under applicable guidelines or regulations. Prior to January 1, 2015, the junior subordinated debentures, subject to certain limitations, qualified as Tier 1 regulatory capital of the Company and the amount in excess of those certain limitations could, subject to other restrictions, be included in Tier 2 capital. Starting in 2015, a portion of these junior subordinated debentures still qualified as Tier 1 regulatory capital of the Company and the amount in excess of those certain limitations, subject to certain restrictions, was included in Tier 2 capital. At December 31, 2015, $65.1 million and $195.4 million of the junior subordinated debentures, net of common securities, were included in the Company's Tier 1 and Tier 2 regulatory capital, respectively. Starting in 2016, none of the junior subordinated debentures qualified as Tier 1 regulatory capital of the Company resulting in $245.5 million of the junior subordinated debentures, net of common securities, being included in the Company's Tier 2 regulatory capital. |
Segment Information |
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Segment Information | Segment Information The Company’s operations consist of three primary segments: community banking, specialty finance and wealth management. The three reportable segments are strategic business units that are separately managed as they offer different products and services and have different marketing strategies. In addition, each segment’s customer base has varying characteristics and each segment has a different regulatory environment. While the Company’s management monitors each of the fifteen bank subsidiaries’ operations and profitability separately, these subsidiaries have been aggregated into one reportable operating segment due to the similarities in products and services, customer base, operations, profitability measures, and economic characteristics. For purposes of internal segment profitability, management allocates certain intersegment and parent company balances. Management allocates a portion of revenues to the specialty finance segment related to loans and leases originated by the specialty finance segment and sold or assigned to the community banking segment. Similarly, for purposes of analyzing the contribution from the wealth management segment, management allocates a portion of the net interest income earned by the community banking segment on deposit balances of customers of the wealth management segment to the wealth management segment. See Note 9 — Deposits, for more information on these deposits. Finally, expenses incurred at the Wintrust parent company are allocated to each segment based on each segment's risk-weighted assets. The segment financial information provided in the following tables has been derived from the internal profitability reporting system used by management to monitor and manage the financial performance of the Company. The accounting policies of the segments are substantially similar to those described in “Summary of Significant Accounting Policies” in Note 1 of the Company’s 2015 Form 10-K. The Company evaluates segment performance based on after-tax profit or loss and other appropriate profitability measures common to each segment. The following is a summary of certain operating information for reportable segments:
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Derivative Financial Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments The Company primarily enters into derivative financial instruments as part of its strategy to manage its exposure to changes in interest rates. Derivative instruments represent contracts between parties that result in one party delivering cash to the other party based on a notional amount and an underlying term (such as a rate, security price or price index) specified in the contract. The amount of cash delivered from one party to the other is determined based on the interaction of the notional amount of the contract with the underlying term. Derivatives are also implicit in certain contracts and commitments. The derivative financial instruments currently used by the Company to manage its exposure to interest rate risk include: (1) interest rate swaps and caps to manage the interest rate risk of certain fixed and variable rate assets and variable rate liabilities; (2) interest rate lock commitments provided to customers to fund certain mortgage loans to be sold into the secondary market; (3) forward commitments for the future delivery of such mortgage loans to protect the Company from adverse changes in interest rates and corresponding changes in the value of mortgage loans held-for-sale; and (4) covered call options to economically hedge specific investment securities and receive fee income effectively enhancing the overall yield on such securities to compensate for net interest margin compression. The Company also enters into derivatives (typically interest rate swaps) with certain qualified borrowers to facilitate the borrowers’ risk management strategies and concurrently enters into mirror-image derivatives with a third party counterparty, effectively making a market in the derivatives for such borrowers. Additionally, the Company enters into foreign currency contracts to manage foreign exchange risk associated with certain foreign currency denominated assets. The Company has purchased interest rate cap derivatives to hedge or manage its own risk exposures. Certain interest rate cap derivatives have been designated as cash flow hedge derivatives of the variable cash outflows associated with interest expense on the Company’s junior subordinated debentures and certain deposits. Other cap derivatives are not designated for hedge accounting but are economic hedges of the Company's overall portfolio, therefore any mark to market changes in the value of these caps are recognized in earnings. Below is a summary of the interest rate cap derivatives held by the Company as of September 30, 2016:
The Company recognizes derivative financial instruments in the consolidated financial statements at fair value regardless of the purpose or intent for holding the instrument. The Company records derivative assets and derivative liabilities on the Consolidated Statements of Condition within accrued interest receivable and other assets and accrued interest payable and other liabilities, respectively. Changes in the fair value of derivative financial instruments are either recognized in income or in shareholders’ equity as a component of other comprehensive income depending on whether the derivative financial instrument qualifies for hedge accounting and, if so, whether it qualifies as a fair value hedge or cash flow hedge. Generally, changes in fair values of derivatives accounted for as fair value hedges are recorded in income in the same period and in the same income statement line as changes in the fair values of the hedged items that relate to the hedged risk(s). Changes in fair values of derivative financial instruments accounted for as cash flow hedges, to the extent they are effective hedges, are recorded as a component of other comprehensive income, net of deferred taxes, and reclassified to earnings when the hedged transaction affects earnings. Changes in fair values of derivative financial instruments not designated in a hedging relationship pursuant to ASC 815, including changes in fair value related to the ineffective portion of cash flow hedges, are reported in non-interest income during the period of the change. Derivative financial instruments are valued by a third party and are corroborated through comparison with valuations provided by the respective counterparties. Fair values of certain mortgage banking derivatives (interest rate lock commitments and forward commitments to sell mortgage loans) are estimated based on changes in mortgage interest rates from the date of the loan commitment. The fair value of foreign currency derivatives is computed based on changes in foreign currency rates stated in the contract compared to those prevailing at the measurement date. The table below presents the fair value of the Company’s derivative financial instruments as of September 30, 2016, December 31, 2015 and September 30, 2015:
Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate derivatives are to add stability to net interest income and to manage its exposure to interest rate movements. To accomplish these objectives, the Company primarily uses interest rate swaps and interest rate caps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without the exchange of the underlying notional amount. Interest rate caps designated as cash flow hedges involve the receipt of payments at the end of each period in which the interest rate specified in the contract exceeds the agreed upon strike price. As of September 30, 2016, the Company had two interest rate swap derivatives designated as cash flow hedges of variable rate deposits. The interest rate swap derivatives had notional amounts of $250.0 million and $275.0 million, and mature in July 2019 and August 2019, respectively. Additionally, as of September 30, 2016, the Company had one interest rate swap and two interest rate caps designated as hedges of the variable cash outflows associated with interest expense on the Company’s junior subordinated debentures. The swap derivative associated with the Company's junior subordinated debentures had a notional amount of $25.0 million, and matures in October 2016. The cap derivatives associated with the Company's junior subordinated debentures had notional amounts of $50.0 million and $40.0 million, respectively, both maturing in September 2017. The effective portion of changes in the fair value of these cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified to interest expense as interest payments are made on the Company’s variable rate junior subordinated debentures. The changes in fair value (net of tax) are separately disclosed in the Consolidated Statements of Comprehensive Income. The ineffective portion of the change in fair value of these derivatives is recognized directly in earnings; however, no hedge ineffectiveness was recognized during the nine months ended September 30, 2016 or September 30, 2015. The Company uses the hypothetical derivative method to assess and measure hedge effectiveness. The table below provides details on each of these cash flow hedges as of September 30, 2016:
A rollforward of the amounts in accumulated other comprehensive loss related to interest rate derivatives designated as cash flow hedges follows:
As of September 30, 2016, the Company estimates that during the next twelve months, $1.7 million will be reclassified from accumulated other comprehensive loss as an increase to interest expense. Fair Value Hedges of Interest Rate Risk Interest rate swaps designated as fair value hedges involve the payment of fixed amounts to a counterparty in exchange for the Company receiving variable payments over the life of the agreements without the exchange of the underlying notional amount. As of September 30, 2016, the Company has seven interest rate swaps with an aggregate notional amount of $71.3 million that were designated as fair value hedges associated with fixed rate commercial and industrial and commercial franchise loans as well as life insurance premium finance receivables. For derivatives designated and that qualify as fair value hedges, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in earnings. The Company includes the gain or loss on the hedged item in the same line item as the offsetting loss or gain on the related derivatives. The Company recognized a net gain of $35,000 in other income related to hedge ineffectiveness for the three months ended September 30, 2016 and a $21,000 net loss for the three months ended September 30, 2015. On a year-to-date basis, the Company recognized a net gain of $13,000 and a net loss of $23,000 for the nine months ending September 30, 2016 and 2015, respectively. On June 1, 2013, the Company de-designated a $96.5 million notional amount cap which was previously designated as a fair value hedge of interest rate risk associated with an embedded cap in one of the Company’s floating rate loans. The hedged loan was restructured which resulted in the interest rate cap no longer qualifying as an effective fair value hedge. As such, the interest rate cap derivative is no longer accounted for under hedge accounting and all changes in the interest rate cap derivative value subsequent to June 1, 2013 are recorded in earnings. The following table presents the gain/(loss) and hedge ineffectiveness recognized on derivative instruments and the related hedged items that are designated as a fair value hedge accounting relationship as of September 30, 2016 and 2015:
Non-Designated Hedges The Company does not use derivatives for speculative purposes. Derivatives not designated as accounting hedges are used to manage the Company’s economic exposure to interest rate movements and other identified risks but do not meet the strict hedge accounting requirements of ASC 815. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings. Interest Rate Derivatives—The Company has interest rate derivatives, including swaps and option products, resulting from a service the Company provides to certain qualified borrowers. The Company’s banking subsidiaries execute certain derivative products (typically interest rate swaps) directly with qualified commercial borrowers to facilitate their respective risk management strategies. For example, these arrangements allow the Company’s commercial borrowers to effectively convert a variable rate loan to a fixed rate. In order to minimize the Company’s exposure on these transactions, the Company simultaneously executes offsetting derivatives with third parties. In most cases, the offsetting derivatives have mirror-image terms, which result in the positions’ changes in fair value substantially offsetting through earnings each period. However, to the extent that the derivatives are not a mirror-image and because of differences in counterparty credit risk, changes in fair value will not completely offset resulting in some earnings impact each period. Changes in the fair value of these derivatives are included in non-interest income. At September 30, 2016, the Company had interest rate derivative transactions with an aggregate notional amount of approximately $4.1 billion (all interest rate swaps and caps with customers and third parties) related to this program. These interest rate derivatives had maturity dates ranging from October 2016 to February 2045. Mortgage Banking Derivatives—These derivatives include interest rate lock commitments provided to customers to fund certain mortgage loans to be sold into the secondary market and forward commitments for the future delivery of such loans. It is the Company’s practice to enter into forward commitments for the future delivery of a portion of our residential mortgage loan production when interest rate lock commitments are entered into in order to economically hedge the effect of future changes in interest rates on its commitments to fund the loans as well as on its portfolio of mortgage loans held-for-sale. The Company’s mortgage banking derivatives have not been designated as being in accounting hedge relationships. At September 30, 2016, the Company had forward commitments to sell mortgage loans with an aggregate notional amount of approximately $1.3 billion and interest rate lock commitments with an aggregate notional amount of approximately $683.6 million. The fair values of these derivatives were estimated based on changes in mortgage rates from the dates of the commitments. Changes in the fair value of these mortgage banking derivatives are included in mortgage banking revenue. Foreign Currency Derivatives—These derivatives include foreign currency contracts used to manage the foreign exchange risk associated with foreign currency denominated assets and to facilitate the respective risk management strategies of certain customer's foreign currency transactions. Foreign currency contracts, which include spot and forward contracts, represent agreements to exchange the currency of one country for the currency of another country at an agreed-upon price on an agreed-upon settlement date. As a result of fluctuations in foreign currencies, the U.S. dollar-equivalent value of the foreign currency denominated assets or forecasted transactions increase or decrease. Gains or losses on the derivative instruments related to these foreign currency denominated assets or forecasted transactions are expected to substantially offset this variability. For certain foreign currency contracts with customers, the Company simultaneously executes offsetting derivatives with third parties. These offsetting derivatives have mirror-image terms, which result in the positions’ changes in fair value substantially offsetting through earnings each period. As of September 30, 2016 the Company held foreign currency derivatives with an aggregate notional amount of approximately $63.6 million. Other Derivatives—Periodically, the Company will sell options to a bank or dealer for the right to purchase certain securities held within the banks’ investment portfolios (covered call options). These option transactions are designed primarily to mitigate overall interest rate risk and to increase the total return associated with the investment securities portfolio. These options do not qualify as accounting hedges pursuant to ASC 815, and, accordingly, changes in fair value of these contracts are recognized as other non-interest income. There were no covered call options outstanding as of September 30, 2016, December 31, 2015 or September 30, 2015. As discussed above, the Company has entered into interest rate cap derivatives to protect the Company in a rising rate environment against increased margin compression due to the repricing of variable rate liabilities and lack of repricing of fixed rate loans and/or securities. As of September 30, 2016, the Company held two interest rate cap derivative contracts, which are not designated in accounting hedge relationships, with an aggregate notional value of $175.0 million. Amounts included in the Consolidated Statements of Income related to derivative instruments not designated in accounting hedge relationships were as follows:
Credit Risk Derivative instruments have inherent risks, primarily market risk and credit risk. Market risk is associated with changes in interest rates and credit risk relates to the risk that the counterparty will fail to perform according to the terms of the agreement. The amounts potentially subject to market and credit risks are the streams of interest payments under the contracts and the market value of the derivative instrument and not the notional principal amounts used to express the volume of the transactions. Market and credit risks are managed and monitored as part of the Company's overall asset-liability management process, except that the credit risk related to derivatives entered into with certain qualified borrowers is managed through the Company's standard loan underwriting process since these derivatives are secured through collateral provided by the loan agreements. Actual exposures are monitored against various types of credit limits established to contain risk within parameters. When deemed necessary, appropriate types and amounts of collateral are obtained to minimize credit exposure. The Company has agreements with certain of its interest rate derivative counterparties that contain cross-default provisions, which provide that if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations. The Company also has agreements with certain of its derivative counterparties that contain a provision allowing the counterparty to terminate the derivative positions if the Company fails to maintain its status as a well or adequately capitalized institution, which would require the Company to settle its obligations under the agreements. As of September 30, 2016, the fair value of interest rate derivatives in a net liability position that were subject to such agreements, which includes accrued interest related to these agreements, was $80.6 million. If at September 30, 2016 the Company had breached any of these provisions and the derivative positions were terminated as a result, the Company would have been required to settle its obligations under the agreements at the termination value and would have been required to pay any additional amounts due in excess of amounts previously posted as collateral with the respective counterparty. The Company is also exposed to the credit risk of its commercial borrowers who are counterparties to interest rate derivatives with the banks. This counterparty risk related to the commercial borrowers is managed and monitored through the banks' standard underwriting process applicable to loans since these derivatives are secured through collateral provided by the loan agreement. The counterparty risk associated with the mirror-image swaps executed with third parties is monitored and managed in connection with the Company's overall asset liability management process. The Company records interest rate derivatives subject to master netting agreements at their gross value and does not offset derivative assets and liabilities on the Consolidated Statements of Condition. The tables below summarize the Company's interest rate derivatives and offsetting positions as of the dates shown.
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Values of Assets and Liabilities | Fair Values of Assets and Liabilities The Company measures, monitors and discloses certain of its assets and liabilities on a fair value basis. These financial assets and financial liabilities are measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the observability of the assumptions used to determine fair value. These levels are:
A financial instrument’s categorization within the above valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the assets or liabilities. Following is a description of the valuation methodologies used for the Company’s assets and liabilities measured at fair value on a recurring basis. Available-for-sale and trading account securities—Fair values for available-for-sale and trading securities are typically based on prices obtained from independent pricing vendors. Securities measured with these valuation techniques are generally classified as Level 2 of the fair value hierarchy. Typically, standard inputs such as benchmark yields, reported trades for similar securities, issuer spreads, benchmark securities, bids, offers and reference data including market research publications are used to fair value a security. When these inputs are not available, broker/dealer quotes may be obtained by the vendor to determine the fair value of the security. We review the vendor’s pricing methodologies to determine if observable market information is being used, versus unobservable inputs. Fair value measurements using significant inputs that are unobservable in the market due to limited activity or a less liquid market are classified as Level 3 in the fair value hierarchy. The Company’s Investment Operations Department is responsible for the valuation of Level 3 available-for-sale securities. The methodology and variables used as inputs in pricing Level 3 securities are derived from a combination of observable and unobservable inputs. The unobservable inputs are determined through internal assumptions that may vary from period to period due to external factors, such as market movement and credit rating adjustments. At September 30, 2016, the Company classified $67.2 million of municipal securities as Level 3. These municipal securities are bond issues for various municipal government entities primarily located in the Chicago metropolitan area and southern Wisconsin and are privately placed, non-rated bonds without CUSIP numbers. The Company’s methodology for pricing the non-rated bonds focuses on three distinct inputs: equivalent rating, yield and other pricing terms. To determine the rating for a given non-rated municipal bond, the Investment Operations Department references a publicly issued bond by the same issuer if available. A reduction is then applied to the rating obtained from the comparable bond, as the Company believes if liquidated, a non-rated bond would be valued less than a similar bond with a verifiable rating. The reduction applied by the Company is one complete rating grade (i.e. a “AA” rating for a comparable bond would be reduced to “A” for the Company’s valuation). In the third quarter of 2016, all of the ratings derived in the above process by Investment Operations were BBB or better, for both bonds with and without comparable bond proxies. The fair value measurement of municipal bonds is sensitive to the rating input, as a higher rating typically results in an increased valuation. The remaining pricing inputs used in the bond valuation are observable. Based on the rating determined in the above process, Investment Operations obtains a corresponding current market yield curve available to market participants. Other terms including coupon, maturity date, redemption price, number of coupon payments per year, and accrual method are obtained from the individual bond term sheets. Certain municipal bonds held by the Company at September 30, 2016 have a call date that has passed, and are now continuously callable. When valuing these bonds, the fair value is capped at par value as the Company assumes a market participant would not pay more than par for a continuously callable bond. At September 30, 2016, the Company held no equity securities classified as Level 3 compared to $25.2 million at December 31, 2015 and $24.5 million at September 30, 2015. In the prior periods, the securities in Level 3 were primarily comprised of auction rate preferred securities. The Company’s valuation methodology at that time included modeling the contractual cash flows of the underlying preferred securities and applying a discount to these cash flows by a market spread derived from the market price of the securities underlying debt. In the third quarter of 2016, the Company exchanged these auction rate securities for the underlying preferred securities, resulting in a $2.4 million gain on the nonmonetary sale. The Company classified the preferred securities received as Level 2 in the fair value hierarchy at the time of the transaction due to observable inputs other than quoted prices existing for the preferred securities. Mortgage loans held-for-sale—The fair value of mortgage loans held-for-sale is determined by reference to investor price sheets for loan products with similar characteristics. Mortgage servicing rights ("MSRs")—Fair value for MSRs is determined utilizing a valuation model which calculates the fair value of each servicing rights based on the present value of estimated future cash flows. The Company uses a discount rate commensurate with the risk associated with each servicing rights, given current market conditions. At September 30, 2016, the Company classified $13.9 million of MSRs as Level 3. The weighted average discount rate used as an input to value the MSRs at September 30, 2016 was 5.52% with discount rates applied ranging from 3%-7%. The higher the rate utilized to discount estimated future cash flows, the lower the fair value measurement. Additionally, fair value estimates include assumptions about prepayment speeds which ranged from 2%-85% or a weighted average prepayment speed of 14.73% used as an input to value the MSRs at September 30, 2016. Prepayment speeds are inversely related to the fair value of MSRs as an increase in prepayment speeds results in a decreased valuation. Derivative instruments—The Company’s derivative instruments include interest rate swaps and caps, commitments to fund mortgages for sale into the secondary market (interest rate locks), forward commitments to end investors for the sale of mortgage loans and foreign currency contracts. Interest rate swaps and caps are valued by a third party, using models that primarily use market observable inputs, such as yield curves, and are corroborated by comparison with valuations provided by the respective counterparties. The credit risk associated with derivative financial instruments that are subject to master netting agreements is measured on a net basis by counterparty portfolio. The fair value for mortgage-related derivatives is based on changes in mortgage rates from the date of the commitments. The fair value of foreign currency derivatives is computed based on change in foreign currency rates stated in the contract compared to those prevailing at the measurement date. Nonqualified deferred compensation assets—The underlying assets relating to the nonqualified deferred compensation plan are included in a trust and primarily consist of non-exchange traded institutional funds which are priced based by an independent third party service. The following tables present the balances of assets and liabilities measured at fair value on a recurring basis for the periods presented:
The aggregate remaining contractual principal balance outstanding as of September 30, 2016, December 31, 2015 and September 30, 2015 for mortgage loans held-for-sale measured at fair value under ASC 825 was $537.0 million, $372.0 million and $328.1 million, respectively, while the aggregate fair value of mortgage loans held-for-sale was $559.6 million, $388.0 million and $347.0 million, for the same respective periods, as shown in the above tables. There were no nonaccrual loans or loans past due greater than 90 days and still accruing in the mortgage loans held-for-sale portfolio measured at fair value as of September 30, 2016, December 31, 2015 and September 30, 2015. The changes in Level 3 assets measured at fair value on a recurring basis during the three and nine months ended September 30, 2016 and 2015 are summarized as follows:
Also, the Company may be required, from time to time, to measure certain other financial assets at fair value on a nonrecurring basis in accordance with GAAP. These adjustments to fair value usually result from impairment charges on individual assets. For assets measured at fair value on a nonrecurring basis that were still held in the balance sheet at the end of the period, the following table provides the carrying value of the related individual assets or portfolios at September 30, 2016.
Impaired loans—A loan is considered to be impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due pursuant to the contractual terms of the loan agreement. A loan modified in a TDR is an impaired loan according to applicable accounting guidance. Impairment is measured by estimating the fair value of the loan based on the present value of expected cash flows, the market price of the loan, or the fair value of the underlying collateral. Impaired loans are considered a fair value measurement where an allowance is established based on the fair value of collateral. Appraised values, which may require adjustments to market-based valuation inputs, are generally used on real estate collateral-dependent impaired loans. The Company’s Managed Assets Division is primarily responsible for the valuation of Level 3 inputs of impaired loans. For more information on the Managed Assets Division review of impaired loans refer to Note 7 – Allowance for Loan Losses, Allowance for Losses on Lending-Related Commitments and Impaired Loans. At September 30, 2016, the Company had $90.5 million of impaired loans classified as Level 3. Of the $90.5 million of impaired loans, $64.6 million were measured at fair value based on the underlying collateral of the loan as shown in the table above. The remaining $25.9 million were valued based on discounted cash flows in accordance with ASC 310. Other real estate owned (including covered other real estate owned)—Other real estate owned is comprised of real estate acquired in partial or full satisfaction of loans and is included in other assets. Other real estate owned is recorded at its estimated fair value less estimated selling costs at the date of transfer, with any excess of the related loan balance over the fair value less expected selling costs charged to the allowance for loan losses. Subsequent changes in value are reported as adjustments to the carrying amount and are recorded in other non-interest expense. Gains and losses upon sale, if any, are also charged to other non-interest expense. Fair value is generally based on third party appraisals and internal estimates that are adjusted by a discount representing the estimated cost of sale and is therefore considered a Level 3 valuation. The Company’s Managed Assets Division is primarily responsible for the valuation of Level 3 inputs for non-covered other real estate owned and covered other real estate owned. At September 30, 2016, the Company had $45.4 million of other real estate owned classified as Level 3. The unobservable input applied to other real estate owned relates to the 10% reduction to the appraisal value representing the estimated cost of sale of the foreclosed property. A higher discount for the estimated cost of sale results in a decreased carrying value. The valuation techniques and significant unobservable inputs used to measure both recurring and non-recurring Level 3 fair value measurements at September 30, 2016 were as follows:
The Company is required under applicable accounting guidance to report the fair value of all financial instruments on the consolidated statements of condition, including those financial instruments carried at cost. The table below presents the carrying amounts and estimated fair values of the Company’s financial instruments as of the dates shown:
Not all the financial instruments listed in the table above are subject to the disclosure provisions of ASC Topic 820, as certain assets and liabilities result in their carrying value approximating fair value. These include cash and cash equivalents, interest bearing deposits with banks, brokerage customer receivables, FHLB and FRB stock, FDIC indemnification asset and liability, accrued interest receivable and accrued interest payable and non-maturity deposits. The following methods and assumptions were used by the Company in estimating fair values of financial instruments that were not previously disclosed. Held-to-maturity securities. Held-to-maturity securities include U.S. Government-sponsored agency securities and municipal bonds issued by various municipal government entities primarily located in the Chicago metropolitan area and southern Wisconsin. Fair values for held-to-maturity securities are typically based on prices obtained from independent pricing vendors. In accordance with ASC 820, the Company has categorized held-to-maturity securities as a Level 2 fair value measurement. Loans. Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are analyzed by type such as commercial, residential real estate, etc. Each category is further segmented by interest rate type (fixed and variable) and term. For variable-rate loans that reprice frequently, estimated fair values are based on carrying values. The fair value of residential loans is based on secondary market sources for securities backed by similar loans, adjusted for differences in loan characteristics. The fair value for other fixed rate loans is estimated by discounting scheduled cash flows through the estimated maturity using estimated market discount rates that reflect credit and interest rate risks inherent in the loan. The primary impact of credit risk on the present value of the loan portfolio, however, was assessed through the use of the allowance for loan losses, which is believed to represent the current fair value of probable incurred losses for purposes of the fair value calculation. In accordance with ASC 820, the Company has categorized loans as a Level 3 fair value measurement. Deposits with stated maturities. The fair value of certificates of deposit is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently in effect for deposits of similar remaining maturities. In accordance with ASC 820, the Company has categorized deposits with stated maturities as a Level 3 fair value measurement. FHLB advances. The fair value of FHLB advances is obtained from the FHLB which uses a discounted cash flow analysis based on current market rates of similar maturity debt securities to discount cash flows. In accordance with ASC 820, the Company has categorized FHLB advances as a Level 3 fair value measurement. Subordinated notes. The fair value of the subordinated notes is based on a market price obtained from an independent pricing vendor. In accordance with ASC 820, the Company has categorized subordinated notes as a Level 2 fair value measurement. Junior subordinated debentures. The fair value of the junior subordinated debentures is based on the discounted value of contractual cash flows. In accordance with ASC 820, the Company has categorized junior subordinated debentures as a Level 3 fair value measurement. |
Stock-Based Compensation Plans |
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Share-based Compensation [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation Plans | Stock-Based Compensation Plans In May 2015, the Company’s shareholders approved the 2015 Stock Incentive Plan (“the 2015 Plan”) which provides for the issuance of up to 5,485,000 shares of common stock. The 2015 Plan replaced the 2007 Stock Incentive Plan (“the 2007 Plan”) which replaced the 1997 Stock Incentive Plan (“the 1997 Plan”). The 2015 Plan, the 2007 Plan and the 1997 Plan are collectively referred to as “the Plans.” The 2015 Plan has substantially similar terms to the 2007 Plan and the 1997 Plan. Outstanding awards under the Plans for which common shares are not issued by reason of cancellation, forfeiture, lapse of such award or settlement of such award in cash, are again available under the 2015 Plan. All grants made after the approval of the 2015 Plan will be made pursuant to the 2015 Plan. The Plans cover substantially all employees of Wintrust. The Compensation Committee of the Board of Directors administers all stock-based compensation programs and authorizes all awards granted pursuant to the Plans. The Plans permit the grant of incentive stock options, non-qualified stock options, stock appreciation rights, stock awards, restricted share or unit awards, performance awards and other incentive awards valued in whole or in part by reference to the Company’s common stock, all on a stand alone, combination or tandem basis. The Company historically awarded stock-based compensation in the form of time-vested non-qualified stock options and time-vested restricted share unit awards (“restricted shares”). The grants of options provide for the purchase of shares of the Company’s common stock at the fair market value of the stock on the date the options are granted. Stock options under the 2015 Plan and the 2007 Plan generally vest ratably over periods of three to five years and have a maximum term of seven years from the date of grant. Stock options granted under the 1997 Plan provided for a maximum term of 10 years. Restricted shares entitle the holders to receive, at no cost, shares of the Company’s common stock. Restricted shares generally vest over periods of one to five years from the date of grant. Beginning in 2011, the Company has awarded annual grants under the Long-Term Incentive Program (“LTIP”), which is administered under the Plans. The LTIP is designed in part to align the interests of management with the interests of shareholders, foster retention, create a long-term focus based on sustainable results and provide participants with a target long-term incentive opportunity. It is anticipated that LTIP awards will continue to be granted annually. LTIP grants to date have consisted of time-vested non-qualified stock options and performance-based stock and cash awards. Performance-based stock and cash awards granted under the LTIP are contingent upon the achievement of pre-established long-term performance goals set in advance by the Compensation Committee over a three-year period starting at the beginning of each calendar year. These performance awards are granted at a target level, and based on the Company’s achievement of the pre-established long-term goals, the actual payouts can range from 0% to a maximum of 150% (for awards granted in 2015 and 2016) or 200% (for awards granted prior to 2015) of the target award. The awards vest in the quarter after the end of the performance period upon certification of the payout by the Compensation Committee of the Board of Directors. Holders of restricted share awards and performance-based stock awards received under the Plans are not entitled to vote or receive cash dividends (or cash payments equal to the cash dividends) on the underlying common shares until the awards are vested and issued. Except in limited circumstances, these awards are canceled upon termination of employment without any payment of consideration by the Company. Shares that are vested but not issuable pursuant to deferred compensation arrangements accrue additional shares based on the value of dividends otherwise paid. Stock-based compensation is measured as the fair value of an award on the date of grant, and the measured cost is recognized over the period which the recipient is required to provide service in exchange for the award. The fair values of restricted share and performance-based stock awards are determined based on the average of the high and low trading prices on the grant date, and the fair value of stock options is estimated using a Black-Scholes option-pricing model that utilizes the assumptions outlined in the following table. Option-pricing models require the input of highly subjective assumptions and are sensitive to changes in the option's expected life and the price volatility of the underlying stock, which can materially affect the fair value estimate. Expected life of options granted since the inception of the LTIP awards has been based on the safe harbor rule of the SEC Staff Accounting Bulletin No. 107 “Share-Based Payment” as the Company believes historical exercise data may not provide a reasonable basis to estimate the expected term of these options. Expected stock price volatility is based on historical volatility of the Company's common stock, which correlates with the expected life of the options, and the risk-free interest rate is based on comparable U.S. Treasury rates. Management reviews and adjusts the assumptions used to calculate the fair value of an option on a periodic basis to better reflect expected trends. The following table presents the weighted average assumptions used to determine the fair value of options granted in the nine month periods ending September 30, 2016 and 2015.
Stock based compensation is recognized based upon the number of awards that are ultimately expected to vest, taking into account expected forfeitures. In addition, for performance-based awards, an estimate is made of the number of shares expected to vest as a result of actual performance against the performance criteria in the award to determine the amount of compensation expense to recognize. The estimate is reevaluated periodically and total compensation expense is adjusted for any change in estimate in the current period. Stock-based compensation expense recognized in the Consolidated Statements of Income was $2.0 million in the third quarter of 2016 and $2.5 million in the third quarter of 2015, and $6.8 million and $7.8 million for the year-to-date periods, respectively. A summary of the Company's stock option activity for the nine months ended September 30, 2016 and September 30, 2015 is presented below:
The weighted average grant date fair value per share of options granted during the nine months ended September 30, 2016 and September 30, 2015 was $8.61 and $9.72, respectively. The aggregate intrinsic value of options exercised during the nine months ended September 30, 2016 and 2015, was $2.7 million and $2.3 million, respectively. A summary of the Plans' restricted share activity for the nine months ended September 30, 2016 and September 30, 2015 is presented below:
A summary of the Plans' performance-based stock award activity, based on the target level of the awards, for the nine months ended September 30, 2016 and September 30, 2015 is presented below:
The Company issues new shares to satisfy its obligation to issue shares granted pursuant to the Plans. |
Shareholders' Equity and Earnings Per Share |
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Earnings Per Share, Basic and Diluted, Other Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders' Equity and Earnings Per Share | Shareholders’ Equity and Earnings Per Share Common Stock Offering In June 2016, the Company issued through a public offering a total of 3,000,000 shares of its common stock. Net proceeds to the Company totaled approximately $152.8 million. Series D Preferred Stock In June 2015, the Company issued and sold 5,000,000 shares of fixed-to-floating non-cumulative perpetual preferred stock, Series D, liquidation preference $25 per share (the “Series D Preferred Stock”) for $125.0 million in a public offering. When, as and if declared, dividends on the Series D Preferred Stock are payable quarterly in arrears at a fixed rate of 6.50% per annum from the original issuance date to, but excluding, July 15, 2025, and from (and including) that date at a floating rate equal to three-month LIBOR plus a spread of 4.06% per annum. Series C Preferred Stock In March 2012, the Company issued and sold 126,500 shares of non-cumulative perpetual convertible preferred stock, Series C, liquidation preference $1,000 per share (the “Series C Preferred Stock”) for $126.5 million in a public offering. When, as and if declared, dividends on the Series C Preferred Stock are payable quarterly in arrears at a rate of 5.00% per annum. The Series C Preferred Stock is convertible into common stock at the option of the holder at a current conversion rate of 24.5569 shares of common stock per share of Series C Preferred Stock subject to customary anti-dilution adjustments. In the first nine months of 2016, pursuant to such terms, 30 shares of the Series C Preferred Stock were converted at the option of the respective holders into 729 shares of the Company's common stock. In 2015, pursuant to such terms, 180 shares of the Series C Preferred Stock were converted at the option of the respective holders into 4,374 shares of the Company's common stock. On and after April 15, 2017, the Company will have the right under certain circumstances to cause the Series C Preferred Stock to be converted into common stock if the closing price of the Company’s common stock exceeds a certain amount. Common Stock Warrant Pursuant to the U.S. Department of the Treasury’s (the “U.S. Treasury”) Capital Purchase Program, on December 19, 2008, the Company issued to the U.S. Treasury a warrant to exercise 1,643,295 warrant shares of Wintrust common stock at a per share exercise price of $22.82, subject to customary anti-dilution adjustments, and with a term of 10 years. In February 2011, the U.S. Treasury sold all of its interest in the warrant issued to it in a secondary underwritten public offering. During the first nine months of 2016, 1,603 warrant shares were exercised, which resulted in 944 shares of common stock issued. At September 30, 2016, all remaining holders of the interest in the warrant were able to exercise 365,829 warrant shares. Other In July 2015, the Company issued 388,573 shares of its common stock in the acquisition of CFIS. In January 2015, the Company issued 422,122 shares of its common stock in the acquisition of Delavan. At the January 2016 Board of Directors meeting, a quarterly cash dividend of $0.12 per share ($0.48 on an annualized basis) was declared. It was paid on February 25, 2016 to shareholders of record as of February 11, 2016. At the April 2016 Board of Directors meeting, a quarterly cash dividend of $0.12 per share ($0.48 on an annualized basis) was declared. It was paid on May 26, 2016 to shareholders of record as of May 12, 2016. At the July 2016 Board of Directors meeting, a quarterly cash dividend of $0.12 per share ($0.48 on an annualized basis) was declared. It was paid on August 25, 2016 to shareholders of record as of August 11, 2016. Accumulated Other Comprehensive Income (Loss) The following tables summarize the components of other comprehensive income (loss), including the related income tax effects, and the related amount reclassified to net income for the periods presented (in thousands).
Earnings per Share The following table shows the computation of basic and diluted earnings per share for the periods indicated:
Potentially dilutive common shares can result from stock options, restricted stock unit awards, stock warrants, the Company’s convertible preferred stock and shares to be issued under the Employee Stock Purchase Plan and the Directors Deferred Fee and Stock Plan, being treated as if they had been either exercised or issued, computed by application of the treasury stock method. While potentially dilutive common shares are typically included in the computation of diluted earnings per share, potentially dilutive common shares are excluded from this computation in periods in which the effect would reduce the loss per share or increase the income per share. For diluted earnings per share, net income applicable to common shares can be affected by the conversion of the Company’s convertible preferred stock. Where the effect of this conversion would reduce the loss per share or increase the income per share, net income applicable to common shares is not adjusted by the associated preferred dividends. |
Basis of Presentation (Policies) |
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Accounting Policies [Abstract] | |||||||||||||
Basis of Accounting, Policy | The consolidated financial statements of Wintrust Financial Corporation and Subsidiaries (“Wintrust” or “the Company”) presented herein are unaudited, but in the opinion of management reflect all necessary adjustments of a normal or recurring nature for a fair presentation of results as of the dates and for the periods covered by the consolidated financial statements. The accompanying consolidated financial statements are unaudited and do not include information or footnotes necessary for a complete presentation of financial condition, results of operations or cash flows in accordance with U.S. generally accepted accounting principles ("GAAP"). The consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 (“2015 Form 10-K”). Operating results reported for the three-month and nine-month periods are not necessarily indicative of the results which may be expected for the entire year. Reclassifications of certain prior period amounts have been made to conform to the current period presentation. The preparation of the financial statements requires management to make estimates, assumptions and judgments that affect the reported amounts of assets and liabilities. Management believes that the estimates made are reasonable, however, changes in estimates may be required if economic or other conditions develop differently from management’s expectations. Certain policies and accounting principles inherently have a greater reliance on the use of estimates, assumptions and judgments and as such have a greater possibility of producing results that could be materially different than originally reported. Management views critical accounting policies to be those which are highly dependent on subjective or complex judgments, estimates and assumptions, and where changes in those estimates and assumptions could have a significant impact on the financial statements. Management currently views the determination of the allowance for loan losses, allowance for covered loan losses and the allowance for losses on lending-related commitments, loans acquired with evidence of credit quality deterioration since origination, estimations of fair value, the valuations required for impairment testing of goodwill, the valuation and accounting for derivative instruments and income taxes as the accounting areas that require the most subjective and complex judgments, and as such could be the most subject to revision as new information becomes available. Descriptions of the Company's significant accounting policies are included in Note 1 - “Summary of Significant Accounting Policies” of the 2015 Form 10-K. |
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Recent Accounting Developments | Revenue Recognition In May 2014, the FASB issued ASU No. 2014-09, which created "Revenue from Contracts with Customers (Topic 606)," to clarify the principles for recognizing revenue and develop a common revenue standard for customer contracts. This ASU provides guidance regarding how an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also added a new subtopic to the codification, ASC 340-40, "Other Assets and Deferred Costs: Contracts with Customers" to provide guidance on costs related to obtaining and fulfilling a customer contract. Furthermore, the new standard requires disclosure of sufficient information to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. At the time ASU No. 2014-09 was issued, the guidance was effective for fiscal years beginning after December 15, 2016. In July 2015, the FASB approved a deferral of the effective date by one year, which would result in the guidance becoming effective for fiscal years beginning after December 15, 2017. The FASB has continued to issue various Updates to clarify and improve specific areas of ASU No. 2014-09. In March 2016, the FASB issued ASU No. 2016-08, "Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)," to clarify the implementation guidance within ASU No. 2014-09 surrounding principal versus agent considerations and its impact on revenue recognition. In April 2016, the FASB issued ASU No. 2016-10, "Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing," to also clarify the implementation guidance within ASU No. 2014-09 related to these two topics. In May 2016, the FASB issued ASU No. 2016-11, "Revenue Recognition (Topic 605) and Derivative and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting," to remove certain areas of SEC Staff Guidance from those specific Topics. Additionally, in May 2016, the FASB issued ASU 2016-12, "Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients," to clarify specific aspects of implementation, including the collectibility criterion, exclusion of sales taxes collected from a transaction price, noncash consideration, contract modifications and completed contracts at transition. Like ASU No. 2014-09, this guidance is effective for fiscal years beginning after December 15, 2017. The Company is currently evaluating the impact of adopting this new guidance on the consolidated financial statements. Extraordinary and Unusual Items In January 2015, the FASB issued ASU No. 2015-01, “Income Statement - Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items,” to eliminate the concept of extraordinary items related to separately classifying, presenting and disclosing certain events and transactions that meet the criteria for that concept. This guidance was effective for fiscal years beginning after December 15, 2015 and did not have a material impact on the Company’s consolidated financial statements. Consolidation In February 2015, the FASB issued ASU No. 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis,” which changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. This guidance was effective for fiscal years beginning after December 15, 2015 and did not have a material impact on the Company's consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-17, "Consolidation (Topic 810): Interest Held through Related Parties That Are under Common Control," to amend guidance from ASU No. 2015-02 regarding how a reporting entity treats indirect interests in a variable interest entity ("VIE") held through related parties under common control when determining whether the reporting entity is the primary beneficiary of such VIE. This guidance is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, and is to be applied under a retrospective approach. The Company does not expect this guidance to have a material impact on the Company's consolidated financial statements. Debt Issuance Costs In April 2015, the FASB issued ASU No. 2015-03, "Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs," to clarify the presentation of debt issuance costs within the balance sheet. This ASU requires that an entity present debt issuance costs related to a recognized debt liability on the balance sheet as a direct deduction from the carrying amount of that debt liability, not as a separate asset. The ASU does not affect the current guidance for the recognition and measurement for these debt issuance costs. Additionally, in August 2015, the FASB issued ASU No. 2015-15, "Interest - Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements (Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting)," to further clarify the presentation of debt issuance costs related to line-of-credit agreements. This ASU states the SEC would not object to an entity deferring and presenting debt issuance costs related to line-of-credit agreements as an asset on the balance sheet and subsequently amortizing these costs ratably over the term of the agreement, regardless of any outstanding borrowing under the line-of-credit agreement. This guidance was effective for fiscal years beginning after December 15, 2015 and was applied retrospectively within the Company’s consolidated financial statements. For December 31, 2015 and September 30, 2015, the Company reclassified as a direct reduction to the related debt balance $7.8 million and $8.7 million, respectively, of debt issuance costs that were previously presented as accrued interest receivable and other assets on the Consolidated Statements of Condition. Business Combinations In September 2015, the FASB issued ASU No. 2015-16, "Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments," to simplify the accounting for subsequent adjustments made to provisional amounts recognized at the acquisition date of a business combination. This ASU eliminates the requirement to retrospectively account for these adjustment for all prior periods impacted. The acquirer is required to recognize these adjustments identified during the measurement period in the reporting period in which the adjustment amount is determined. Additionally, the ASU requires an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings that would have been recorded in previous reporting periods if the adjustment had been recognized at the acquisition date. This guidance was effective for fiscal years beginning after December 15, 2015 and did not have a material impact on the Company’s consolidated financial statements. Financial Instruments In January 2016, the FASB issued ASU No. 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities," to improve the accounting for financial instruments. This ASU requires equity investments with readily determinable fair values to be measured at fair value with changes recognized in net income regardless of classification. For equity investments without a readily determinable fair value, the value of the investment would be measured at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer instead of fair value, unless a qualitative assessment indicates impairment. Additionally, this ASU requires the separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements. This guidance is effective for fiscal years beginning after December 15, 2017 and is to be applied prospectively with a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The Company is currently evaluating the impact of adopting this new guidance on the consolidated financial statements. Leases In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)," to improve transparency and comparability across entities regarding leasing arrangements. This ASU requires the recognition of a separate lease liability representing the required lease payments over the lease term and a separate lease asset representing the right to use the underlying asset during the same lease term. Additionally, this ASU provides clarification regarding the identification of certain components of contracts that would represent a lease as well as requires additional disclosures to the notes of the financial statements. This guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and is to be applied under a modified retrospective approach, including the option to apply certain practical expedients. The Company is currently evaluating the impact of adopting this new guidance on the consolidated financial statements. Derivatives In March 2016, the FASB issued ASU No. 2016-05, "Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships," to clarify guidance surrounding the effect on an existing hedging relationship of a change in the counterparty to a derivative instrument that has been designated as a hedging instrument. This ASU states that a change in counterparty to such derivative instrument does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. This guidance is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, and is to be applied either under a prospective or a modified retrospective approach. The Company does not expect this guidance to have a material impact on the Company's consolidated financial statements. Equity Method Investments In March 2016, the FASB issued ASU No. 2016-07, "Investments - Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting," to simplify the accounting for investments qualifying for the use of the equity method of accounting. This ASU eliminates the requirement to retroactively adopt the equity method of accounting when an investment qualifies for such method as a result of an increase in the level of ownership interest or degree of influence. The ASU requires the equity method investor add the cost of acquiring the additional interest to the current basis and adopt the equity method of accounting as of that date going forward. Additionally, for available-for-sale equity securities that become qualified for equity method accounting, the ASU requires the related unrealized holding gains or losses included in accumulated other comprehensive income be recognized in earnings at the date the investment qualifies for such accounting. This guidance is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, and is to be applied under a prospective approach. The Company does not expect this guidance to have a material impact on the Company's consolidated financial statements. Employee Share-Based Compensation In March 2016, the FASB issued ASU No. 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting," to simplify the accounting for several areas of share-based payment transactions. This includes the recognition of all excess tax benefits and tax deficiencies as income tax expense instead of surplus, the classification on the statement of cash flows of excess tax benefits and taxes paid when the employer withholds shares for tax-withholding purposes. Additionally, related to forfeitures, the ASU provides the option to estimate the number of awards that are expected to vest or account for forfeitures as they occur. This guidance is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, and is to be applied under a modified retrospective and retrospective approach based upon the specific amendment of the ASU. The Company is currently evaluating the impact of adopting this new guidance on the consolidated financial statements. Allowance for Credit Losses In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments," to replace the current incurred loss methodology for recognizing credit losses, which delays recognition until it is probable a loss has been incurred, with a methodology that reflects an estimate of all expected credit losses and considers additional reasonable and supportable forecasted information when determining credit loss estimates. This impacts the calculation of the allowance for credit losses for all financial assets measured under the amortized cost basis, including purchased credit impaired ("PCI") loans at the time of and subsequent to acquisition. Additionally, credit losses related to available-for-sale debt securities would be recorded through the allowance for credit losses and not as a direct adjustment to the amortized cost of the securities. This guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, and is to be applied under a modified retrospective approach. The Company is currently evaluating the impact of adopting this new guidance on the consolidated financial statements as well as the impact on current systems and processes. Statement of Cash Flows In August 2016, the FASB issued ASU No. 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the FASB Emerging Issues Task Force)," to clarify the presentation of specific types of cash flow receipts and payments, including the payment of debt prepayment or debt extinguishment costs, contingent consideration cash payments paid subsequent to the acquisition date and proceeds from settlement of BOLI policies. This guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and is to be applied under a retrospective approach, if practicable. The Company does not expect this guidance to have a material impact on the Company's consolidated financial statements. Income Taxes In October 2016, the FASB issued ASU No. 2016-16, "Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory," to improve the accounting for intra-entity transfers of assets other than inventory. This ASU allows the recognition of current and deferred income taxes for such transfers prior to the subsequent sale of the transferred assets to an outside party. Initial recognition of current and deferred income taxes is currently prohibited for intra-entity transfers of assets other than inventory. This guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and is to be applied under a modified retrospective approach through cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The Company is currently evaluating the impact of adopting this new guidance on the consolidated financial statements. |
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FDIC-Assisted Transactions, Policy | Since 2010, the Company acquired the banking operations, including the acquisition of certain assets and the assumption of liabilities, of nine financial institutions in FDIC-assisted transactions. Loans comprise the majority of the assets acquired in nearly all of these FDIC-assisted transactions, most of which are subject to loss sharing agreements with the FDIC whereby the FDIC has agreed to reimburse the Company for 80% of losses incurred on the purchased loans, other real estate owned (“OREO”), and certain other assets. Additionally, clawback provisions within these loss share agreements with the FDIC require the Company to reimburse the FDIC in the event that actual losses on covered assets are lower than the original loss estimates agreed upon with the FDIC with respect of such assets in the loss share agreements. The Company refers to the loans subject to these loss sharing agreements as “covered loans” and uses the term “covered assets” to refer to covered loans, covered OREO and certain other covered assets. The agreements with the FDIC require that the Company follow certain servicing procedures or risk losing the FDIC reimbursement of covered asset losses. The loans covered by the loss sharing agreements are classified and presented as covered loans and the estimated reimbursable losses are recorded as an FDIC indemnification asset or other liability in the Consolidated Statements of Condition. The Company recorded the acquired assets and liabilities at their estimated fair values at the acquisition date. The fair value for loans reflected expected credit losses at the acquisition date. Therefore, the Company will only recognize a provision for credit losses and charge-offs on the acquired loans for any further credit deterioration subsequent to the acquisition date. See Note 7 — Allowance for Loan Losses, Allowance for Losses on Lending-Related Commitments and Impaired Loans for further discussion of the allowance on covered loans. The loss share agreements with the FDIC cover realized losses on loans, foreclosed real estate and certain other assets and require the Company to record loss share assets and liabilities that are measured separately from the loan portfolios because they are not contractually embedded in the loans and are not transferable with the loans should the Company choose to dispose of them. Fair values at the acquisition dates were estimated based on projected cash flows available for loss share based on the credit adjustments estimated for each loan pool and the loss share percentages. The loss share assets and liabilities are recorded as FDIC indemnification assets and other liabilities, respectively, on the Consolidated Statements of Condition. Subsequent to the acquisition date, reimbursements received from the FDIC for actual incurred losses will reduce the FDIC indemnification assets. Reductions to expected losses, to the extent such reductions to expected losses are the result of an improvement to the actual or expected cash flows from the covered assets, will also reduce the FDIC indemnification assets and, if necessary, increase any loss share liability when necessary reductions exceed the current value of the FDIC indemnification assets. In accordance with the clawback provision noted above, the Company may be required to reimburse the FDIC when actual losses are less than certain thresholds established for each lose share agreement. The balance of these estimated reimbursements in accordance with clawback provisions and any related amortization are adjusted periodically for changes in the expected losses on covered assets. On the Consolidated Statements of Condition, estimated reimbursements from clawback provisions are recorded as a reduction to the FDIC indemnification asset or, if necessary, an increase to the loss share liability, which is included within accrued interest payable and other liabilities. Although these assets are contractual receivables from the FDIC and these liabilities are contractual payables to the FDIC, there are no contractual interest rates. Additional expected losses, to the extent such expected losses result in recognition of an allowance for covered loan losses, will increase the FDIC indemnification asset or reduce the FDIC indemnification liability. The corresponding amortization is recorded as a component of non-interest income on the Consolidated Statements of Income. |
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Purchased Credit Impaired (PCI) Loans, Policy | Purchased loans acquired in a business combination are recorded at estimated fair value on their purchase date. Expected future cash flows at the purchase date in excess of the fair value of loans are recorded as interest income over the life of the loans if the timing and amount of the future cash flows is reasonably estimable (“accretable yield”). The difference between contractually required payments and the cash flows expected to be collected at acquisition is referred to as the non-accretable difference and represents probable losses in the portfolio. In determining the acquisition date fair value of PCI loans, and in subsequent accounting, the Company aggregates these purchased loans into pools of loans by common risk characteristics, such as credit risk rating and loan type. Subsequent to the purchase date, increases in cash flows over those expected at the purchase date are recognized as interest income prospectively. Subsequent decreases to the expected cash flows will generally result in a provision for loan losses. The Company purchased a portfolio of life insurance premium finance receivables in 2009. These purchased life insurance premium finance receivables are valued on an individual basis with the accretable component being recognized into interest income using the effective yield method over the estimated remaining life of the loans. The non-accretable portion is evaluated each quarter and if the loans’ credit related conditions improve, a portion is transferred to the accretable component and accreted over future periods. In the event a specific loan prepays in whole, any remaining accretable and non-accretable discount is recognized in income immediately. If credit related conditions deteriorate, an allowance related to these loans will be established as part of the provision for credit losses. |
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Cash and Cash Equivalents, Policy | For purposes of the Consolidated Statements of Cash Flows, the Company considers cash and cash equivalents to include cash on hand, cash items in the process of collection, non-interest bearing amounts due from correspondent banks, federal funds sold and securities purchased under resale agreements with original maturities of three months or less. |
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Investment Securities, Policy | The Company conducts a regular assessment of its investment securities to determine whether securities are other-than-temporarily impaired considering, among other factors, the nature of the securities, credit ratings or financial condition of the issuer, the extent and duration of the unrealized loss, expected cash flows, market conditions and the Company’s ability to hold the securities through the anticipated recovery period. The Company does not consider securities with unrealized losses at September 30, 2016 to be other-than-temporarily impaired. |
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Finance, Loans and Leases Receivable, Policy | Certain premium finance receivables are recorded net of unearned income. The unearned income portions of such premium finance receivables were $64.4 million at September 30, 2016, $56.7 million at December 31, 2015 and $53.4 million at September 30, 2015, respectively. Certain life insurance premium finance receivables attributable to the life insurance premium finance loan acquisition in 2009 as well as PCI loans are recorded net of credit discounts. |
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Receivables, Policy | These amounts include accretion from both covered and non-covered loans, and are both included within interest and fees on loans in the Consolidated Statements of Income. |
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Allowance and Nonperforming Loans, Allowance Policy | As a result of this initial review by the Company’s Managed Asset Division, the credit risk rating is reviewed and a portion of the outstanding loan balance may be deemed uncollectible or an impairment reserve may be established. The Company’s impairment analysis utilizes an independent re-appraisal of the collateral (unless such a third-party evaluation is not possible due to the unique nature of the collateral, such as a closely-held business or thinly traded securities). In the case of commercial real estate collateral, an independent third party appraisal is ordered by the Company’s Real Estate Services Group to determine if there has been any change in the underlying collateral value. These independent appraisals are reviewed by the Real Estate Services Group and sometimes by independent third party valuation experts and may be adjusted depending upon market conditions. Through the credit risk rating process, loans are reviewed to determine if they are performing in accordance with the original contractual terms. If the borrower has failed to comply with the original contractual terms, further action may be required by the Company, including a downgrade in the credit risk rating, movement to non-accrual status, a charge-off or the establishment of a specific impairment reserve. If we determine that a loan amount, or portion thereof, is uncollectible, the loan’s credit risk rating is immediately downgraded to an 8 or 9 and the uncollectible amount is charged-off. Any loan that has a partial charge-off continues to be assigned a credit risk rating of an 8 or 9 for the duration of time that a balance remains outstanding. The Company undertakes a thorough and ongoing analysis to determine if additional impairment and/or charge-offs are appropriate and to begin a workout plan for the credit to minimize actual losses. If, based on current information and events, it is probable that the Company will be unable to collect all amounts due to it according to the contractual terms of the loan agreement, a specific impairment reserve is established. In determining the appropriate charge-off for collateral-dependent loans, the Company considers the results of appraisals for the associated collateral. |
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Loans and Leases Receivable, Nonperforming Loan and Lease, Policy | Non-performing loans include all non-accrual loans (8 and 9 risk ratings) as well as loans 90 days past due and still accruing interest, excluding PCI and covered loans. The remainder of the portfolio is considered performing under the contractual terms of the loan agreement. |
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Loans and Leases Receivable, Allowance for Loan Losses, Policy | In conjunction with FDIC-assisted transactions, the Company entered into loss share agreements with the FDIC. Additional expected losses, to the extent such expected losses result in the recognition of an allowance for loan losses, will increase the FDIC loss share asset or reduce any FDIC loss share liability. The allowance for loan losses for loans acquired in FDIC-assisted transactions is determined without giving consideration to the amounts recoverable through loss share agreements (since the loss share agreements are separately accounted for and thus presented “gross” on the balance sheet). On the Consolidated Statements of Income, the provision for credit losses is reported net of changes in the amount recoverable under the loss share agreements. Reductions to expected losses, to the extent such reductions to expected losses are the result of an improvement to the actual or expected cash flows from the covered assets, will reduce the FDIC loss share asset or increase any FDIC loss share liability. Additions to expected losses will require an increase to the allowance for covered loan losses, and a corresponding increase to the FDIC loss share asset or reduction to any FDIC loss share liability. |
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Impaired Financing Receivable, Policy | These impaired loans require an allowance for loan losses because the estimated fair value of the loans or related collateral is less than the recorded investment in the loans. Impaired loans are considered by the Company to be non-accrual loans, TDRs or loans with principal and/or interest at risk, even if the loan is current with all payments of principal and interest. A loan is considered to be impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due pursuant to the contractual terms of the loan agreement. A loan modified in a TDR is an impaired loan according to applicable accounting guidance. Impairment is measured by estimating the fair value of the loan based on the present value of expected cash flows, the market price of the loan, or the fair value of the underlying collateral. Impaired loans are considered a fair value measurement where an allowance is established based on the fair value of collateral. Appraised values, which may require adjustments to market-based valuation inputs, are generally used on real estate collateral-dependent impaired loans. |
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Loans and Leases Receivable, Troubled Debt Restructuring Policy | The Company’s approach to restructuring loans, excluding PCI loans, is built on its credit risk rating system which requires credit management personnel to assign a credit risk rating to each loan. In each case, the loan officer is responsible for recommending a credit risk rating for each loan and ensuring the credit risk ratings are appropriate. These credit risk ratings are then reviewed and approved by the bank’s chief credit officer and/or concurrence credit officer. Credit risk ratings are determined by evaluating a number of factors including a borrower’s financial strength, cash flow coverage, collateral protection and guarantees. The Company’s credit risk rating scale is one through ten with higher scores indicating higher risk. In the case of loans rated six or worse following modification, the Company’s Managed Assets Division evaluates the loan and the credit risk rating and determines that the loan has been restructured to be reasonably assured of repayment and of performance according to the modified terms and is supported by a current, well-documented credit assessment of the borrower’s financial condition and prospects for repayment under the revised terms. A modification of a loan, excluding PCI loans, with an existing credit risk rating of 6 or worse or a modification of any other credit, which will result in a restructured credit risk rating of six or worse, must be reviewed for possible TDR classification. In that event, our Managed Assets Division conducts an overall credit and collateral review. A modification of these loans is considered to be a TDR if both (1) the borrower is experiencing financial difficulty and (2) for economic or legal reasons, the bank grants a concession to a borrower that it would not otherwise consider. The modification of a loan, excluding PCI loans, where the credit risk rating is 5 or better both before and after such modification is not considered to be a TDR. Based on the Company’s credit risk rating system, it considers that borrowers whose credit risk rating is 5 or better are not experiencing financial difficulties and therefore, are not considered TDRs. All credits determined to be a TDR will continue to be classified as a TDR in all subsequent periods, unless the borrower has been in compliance with the loan’s modified terms for a period of six months (including over a calendar year-end) and the current interest rate represents a market rate at the time of restructuring. The Managed Assets Division, in consultation with the respective loan officer, determines whether the modified interest rate represented a current market rate at the time of restructuring. Using knowledge of current market conditions and rates, competitive pricing on recent loan originations, and an assessment of various characteristics of the modified loan (including collateral position and payment history), an appropriate market rate for a new borrower with similar risk is determined. If the modified interest rate meets or exceeds this market rate for a new borrower with similar risk, the modified interest rate represents a market rate at the time of restructuring. Additionally, before removing a loan from TDR classification, a review of the current or previously measured impairment on the loan and any concerns related to future performance by the borrower is conducted. If concerns exist about the future ability of the borrower to meet its obligations under the loans based on a credit review by the Managed Assets Division, the TDR classification is not removed from the loan. TDRs are reviewed at the time of the modification and on a quarterly basis to determine if a specific reserve is necessary. The carrying amount of the loan is compared to the expected payments to be received, discounted at the loan's original rate, or for collateral dependent loans, to the fair value of the collateral. Any shortfall is recorded as a specific reserve. The Company, in accordance with ASC 310-10, continues to individually measure impairment of these loans after the TDR classification is removed. Each TDR was reviewed for impairment at September 30, 2016 and approximately $2.8 million of impairment was present and appropriately reserved for through the Company’s normal reserving methodology in the Company’s allowance for loan losses. For TDRs in which impairment is calculated by the present value of future cash flows, the Company records interest income representing the decrease in impairment resulting from the passage of time during the respective period, which differs from interest income from contractually required interest on these specific loans. During both the three months ended September 30, 2016 and 2015, the Company recorded $98,000 interest income representing this decrease in impairment. For the nine months ended September 30, 2016 and 2015, the Company recorded $323,000 and $385,000, respectively, in interest income. TDRs may arise in which, due to financial difficulties experienced by the borrower, the Company obtains through physical possession one or more collateral assets in satisfaction of all or part of an existing credit. Once possession is obtained, the Company reclassifies the appropriate portion of the remaining balance of the credit from loans to OREO, which is included within other assets in the Consolidated Statements of Condition. For any residential real estate property collateralizing a consumer mortgage loan, the Company is considered to possess the related collateral only if legal title is obtained upon completion of foreclosure, or the borrower conveys all interest in the residential real estate property to the Company through completion of a deed in lieu of foreclosure or similar legal agreement. Excluding covered OREO, at September 30, 2016, the Company had $11.7 million of foreclosed residential real estate properties included within OREO. |
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Goodwill and Intangible Assets, Goodwill, Policy | At June 30, 2016, the Company utilized a qualitative approach for its annual goodwill impairment test of the community banking segment and determined that it is not more likely than not than an impairment existed at that time. The annual goodwill impairment tests of the specialty finance and wealth management segments will be conducted at December 31, 2016. At each reporting date between annual goodwill impairment tests, the Company considers potential indicators of impairment. As of September 30, 2016, the Company identified no such indicators of goodwill impairment. |
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Goodwill and Intangible Assets, Intangible Assets, Policy | The core deposit intangibles recognized in connection with prior bank acquisitions are amortized over a ten-year period on an accelerated basis. The customer list intangibles recognized in connection with the purchase of life insurance premium finance assets in 2009 are being amortized over an 18-year period on an accelerated basis while the customer list intangibles recognized in connection with prior acquisitions within the wealth management segment are being amortized over a ten-year period on a straight-line basis. |
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Debt, Policy | These transactions were not considered sales of receivables and, as such, related proceeds received are reflected on the Company’s Consolidated Statements of Condition as a secured borrowing owed to the unrelated third party, net of unamortized debt issuance costs, and translated to the Company’s reporting currency as of the respective date. The Term Facility is stated at par of the current outstanding balance of the debt adjusted for unamortized costs paid by the Company in relation to the debt issuance. FHLB advances are stated at par value of the debt adjusted for unamortized prepayment fees paid at the time of prior restructurings of FHLB advances and unamortized fair value adjustments recorded in connection with advances acquired through acquisitions. These notes are stated at par adjusted for unamortized costs paid related to the issuance of this debt. As no outstanding balance exists on the Revolving Credit Facility, unamortized costs paid by the Company in relation to the issuance of this debt are classified in other assets on the Consolidated Statements of Condition. |
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Offsetting Assets and Liabilities, Policy | The Company records securities sold under repurchase agreements at their gross value and does not offset positions on the Consolidated Statements of Condition. |
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Repurchase Agreements, Policy | Securities pledged for customer balances in sweep accounts and short-term borrowings from brokers are maintained under the Company’s control and consist of U.S. Government agency, mortgage-backed and corporate securities. These securities are included in the available-for-sale and held-to-maturity securities portfolios as reflected on the Company’s Consolidated Statements of Condition. |
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Junior Subordinated Debentures, Policy | The Trusts are reported in the Company’s consolidated financial statements as unconsolidated subsidiaries. Accordingly, in the Consolidated Statements of Condition, the junior subordinated debentures issued by the Company to the Trusts are reported as liabilities and the common securities of the Trusts, all of which are owned by the Company, are included in available-for-sale securities. |
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Segment Reporting, Policy | The Company’s operations consist of three primary segments: community banking, specialty finance and wealth management. The three reportable segments are strategic business units that are separately managed as they offer different products and services and have different marketing strategies. In addition, each segment’s customer base has varying characteristics and each segment has a different regulatory environment. While the Company’s management monitors each of the fifteen bank subsidiaries’ operations and profitability separately, these subsidiaries have been aggregated into one reportable operating segment due to the similarities in products and services, customer base, operations, profitability measures, and economic characteristics. For purposes of internal segment profitability, management allocates certain intersegment and parent company balances. Management allocates a portion of revenues to the specialty finance segment related to loans and leases originated by the specialty finance segment and sold or assigned to the community banking segment. Similarly, for purposes of analyzing the contribution from the wealth management segment, management allocates a portion of the net interest income earned by the community banking segment on deposit balances of customers of the wealth management segment to the wealth management segment. See Note 9 — Deposits, for more information on these deposits. Finally, expenses incurred at the Wintrust parent company are allocated to each segment based on each segment's risk-weighted assets. The segment financial information provided in the following tables has been derived from the internal profitability reporting system used by management to monitor and manage the financial performance of the Company. The accounting policies of the segments are substantially similar to those described in “Summary of Significant Accounting Policies” in Note 1 of the Company’s 2015 Form 10-K. The Company evaluates segment performance based on after-tax profit or loss and other appropriate profitability measures common to each segment. |
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Derivatives, Policy | On June 1, 2013, the Company de-designated a $96.5 million notional amount cap which was previously designated as a fair value hedge of interest rate risk associated with an embedded cap in one of the Company’s floating rate loans. The hedged loan was restructured which resulted in the interest rate cap no longer qualifying as an effective fair value hedge. As such, the interest rate cap derivative is no longer accounted for under hedge accounting and all changes in the interest rate cap derivative value subsequent to June 1, 2013 are recorded in earnings. The fair values of these derivatives were estimated based on changes in mortgage rates from the dates of the commitments. Changes in the fair value of these mortgage banking derivatives are included in mortgage banking revenue. The effective portion of changes in the fair value of these cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified to interest expense as interest payments are made on the Company’s variable rate junior subordinated debentures. The changes in fair value (net of tax) are separately disclosed in the Consolidated Statements of Comprehensive Income. The ineffective portion of the change in fair value of these derivatives is recognized directly in earnings; however, no hedge ineffectiveness was recognized during the nine months ended September 30, 2016 or September 30, 2015. The Company uses the hypothetical derivative method to assess and measure hedge effectiveness. Periodically, the Company will sell options to a bank or dealer for the right to purchase certain securities held within the banks’ investment portfolios (covered call options). These option transactions are designed primarily to mitigate overall interest rate risk and to increase the total return associated with the investment securities portfolio. These options do not qualify as accounting hedges pursuant to ASC 815, and, accordingly, changes in fair value of these contracts are recognized as other non-interest income. In most cases, the offsetting derivatives have mirror-image terms, which result in the positions’ changes in fair value substantially offsetting through earnings each period. However, to the extent that the derivatives are not a mirror-image and because of differences in counterparty credit risk, changes in fair value will not completely offset resulting in some earnings impact each period. Changes in the fair value of these derivatives are included in non-interest income. The Company recognizes derivative financial instruments in the consolidated financial statements at fair value regardless of the purpose or intent for holding the instrument. The Company records derivative assets and derivative liabilities on the Consolidated Statements of Condition within accrued interest receivable and other assets and accrued interest payable and other liabilities, respectively. Changes in the fair value of derivative financial instruments are either recognized in income or in shareholders’ equity as a component of other comprehensive income depending on whether the derivative financial instrument qualifies for hedge accounting and, if so, whether it qualifies as a fair value hedge or cash flow hedge. Generally, changes in fair values of derivatives accounted for as fair value hedges are recorded in income in the same period and in the same income statement line as changes in the fair values of the hedged items that relate to the hedged risk(s). Changes in fair values of derivative financial instruments accounted for as cash flow hedges, to the extent they are effective hedges, are recorded as a component of other comprehensive income, net of deferred taxes, and reclassified to earnings when the hedged transaction affects earnings. Changes in fair values of derivative financial instruments not designated in a hedging relationship pursuant to ASC 815, including changes in fair value related to the ineffective portion of cash flow hedges, are reported in non-interest income during the period of the change. Derivative financial instruments are valued by a third party and are corroborated through comparison with valuations provided by the respective counterparties. Fair values of certain mortgage banking derivatives (interest rate lock commitments and forward commitments to sell mortgage loans) are estimated based on changes in mortgage interest rates from the date of the loan commitment. The fair value of foreign currency derivatives is computed based on changes in foreign currency rates stated in the contract compared to those prevailing at the measurement date. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings. For derivatives designated and that qualify as fair value hedges, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in earnings. The Company includes the gain or loss on the hedged item in the same line item as the offsetting loss or gain on the related derivatives. The Company recognized a net gain of $35,000 in other income related to hedge ineffectiveness for the three months ended September 30, 2016 and a $21,000 net loss for the three months ended September 30, 2015. On a year-to-date basis, the Company recognized a net gain of $13,000 and a net loss of $23,000 for the nine months ending September 30, 2016 and 2015, respectively. |
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Derivatives, Offsetting Fair Value Amounts, Policy | The Company records interest rate derivatives subject to master netting agreements at their gross value and does not offset derivative assets and liabilities on the Consolidated Statements of Condition. |
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Fair Value of Financial Instruments, Policy | The Company measures, monitors and discloses certain of its assets and liabilities on a fair value basis. These financial assets and financial liabilities are measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the observability of the assumptions used to determine fair value. These levels are:
A financial instrument’s categorization within the above valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the assets or liabilities. Following is a description of the valuation methodologies used for the Company’s assets and liabilities measured at fair value on a recurring basis. Available-for-sale and trading account securities—Fair values for available-for-sale and trading securities are typically based on prices obtained from independent pricing vendors. Securities measured with these valuation techniques are generally classified as Level 2 of the fair value hierarchy. Typically, standard inputs such as benchmark yields, reported trades for similar securities, issuer spreads, benchmark securities, bids, offers and reference data including market research publications are used to fair value a security. When these inputs are not available, broker/dealer quotes may be obtained by the vendor to determine the fair value of the security. We review the vendor’s pricing methodologies to determine if observable market information is being used, versus unobservable inputs. Fair value measurements using significant inputs that are unobservable in the market due to limited activity or a less liquid market are classified as Level 3 in the fair value hierarchy. The Company’s Investment Operations Department is responsible for the valuation of Level 3 available-for-sale securities. The methodology and variables used as inputs in pricing Level 3 securities are derived from a combination of observable and unobservable inputs. The unobservable inputs are determined through internal assumptions that may vary from period to period due to external factors, such as market movement and credit rating adjustments. At September 30, 2016, the Company classified $67.2 million of municipal securities as Level 3. These municipal securities are bond issues for various municipal government entities primarily located in the Chicago metropolitan area and southern Wisconsin and are privately placed, non-rated bonds without CUSIP numbers. The Company’s methodology for pricing the non-rated bonds focuses on three distinct inputs: equivalent rating, yield and other pricing terms. To determine the rating for a given non-rated municipal bond, the Investment Operations Department references a publicly issued bond by the same issuer if available. A reduction is then applied to the rating obtained from the comparable bond, as the Company believes if liquidated, a non-rated bond would be valued less than a similar bond with a verifiable rating. The reduction applied by the Company is one complete rating grade (i.e. a “AA” rating for a comparable bond would be reduced to “A” for the Company’s valuation). In the third quarter of 2016, all of the ratings derived in the above process by Investment Operations were BBB or better, for both bonds with and without comparable bond proxies. The fair value measurement of municipal bonds is sensitive to the rating input, as a higher rating typically results in an increased valuation. The remaining pricing inputs used in the bond valuation are observable. Based on the rating determined in the above process, Investment Operations obtains a corresponding current market yield curve available to market participants. Other terms including coupon, maturity date, redemption price, number of coupon payments per year, and accrual method are obtained from the individual bond term sheets. Certain municipal bonds held by the Company at September 30, 2016 have a call date that has passed, and are now continuously callable. When valuing these bonds, the fair value is capped at par value as the Company assumes a market participant would not pay more than par for a continuously callable bond. At September 30, 2016, the Company held no equity securities classified as Level 3 compared to $25.2 million at December 31, 2015 and $24.5 million at September 30, 2015. In the prior periods, the securities in Level 3 were primarily comprised of auction rate preferred securities. The Company’s valuation methodology at that time included modeling the contractual cash flows of the underlying preferred securities and applying a discount to these cash flows by a market spread derived from the market price of the securities underlying debt. In the third quarter of 2016, the Company exchanged these auction rate securities for the underlying preferred securities, resulting in a $2.4 million gain on the nonmonetary sale. The Company classified the preferred securities received as Level 2 in the fair value hierarchy at the time of the transaction due to observable inputs other than quoted prices existing for the preferred securities. Mortgage loans held-for-sale—The fair value of mortgage loans held-for-sale is determined by reference to investor price sheets for loan products with similar characteristics. Mortgage servicing rights ("MSRs")—Fair value for MSRs is determined utilizing a valuation model which calculates the fair value of each servicing rights based on the present value of estimated future cash flows. The Company uses a discount rate commensurate with the risk associated with each servicing rights, given current market conditions. At September 30, 2016, the Company classified $13.9 million of MSRs as Level 3. The weighted average discount rate used as an input to value the MSRs at September 30, 2016 was 5.52% with discount rates applied ranging from 3%-7%. The higher the rate utilized to discount estimated future cash flows, the lower the fair value measurement. Additionally, fair value estimates include assumptions about prepayment speeds which ranged from 2%-85% or a weighted average prepayment speed of 14.73% used as an input to value the MSRs at September 30, 2016. Prepayment speeds are inversely related to the fair value of MSRs as an increase in prepayment speeds results in a decreased valuation. Derivative instruments—The Company’s derivative instruments include interest rate swaps and caps, commitments to fund mortgages for sale into the secondary market (interest rate locks), forward commitments to end investors for the sale of mortgage loans and foreign currency contracts. Interest rate swaps and caps are valued by a third party, using models that primarily use market observable inputs, such as yield curves, and are corroborated by comparison with valuations provided by the respective counterparties. The credit risk associated with derivative financial instruments that are subject to master netting agreements is measured on a net basis by counterparty portfolio. The fair value for mortgage-related derivatives is based on changes in mortgage rates from the date of the commitments. The fair value of foreign currency derivatives is computed based on change in foreign currency rates stated in the contract compared to those prevailing at the measurement date. Nonqualified deferred compensation assets—The underlying assets relating to the nonqualified deferred compensation plan are included in a trust and primarily consist of non-exchange traded institutional funds which are priced based by an independent third party service. |
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Foreclosed Assets, Policy | Other real estate owned is comprised of real estate acquired in partial or full satisfaction of loans and is included in other assets. Other real estate owned is recorded at its estimated fair value less estimated selling costs at the date of transfer, with any excess of the related loan balance over the fair value less expected selling costs charged to the allowance for loan losses. Subsequent changes in value are reported as adjustments to the carrying amount and are recorded in other non-interest expense. Gains and losses upon sale, if any, are also charged to other non-interest expense. Fair value is generally based on third party appraisals and internal estimates that are adjusted by a discount representing the estimated cost of sale and is therefore considered a Level 3 valuation. |
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Fair Value Measurement, Policy | The following methods and assumptions were used by the Company in estimating fair values of financial instruments that were not previously disclosed. Held-to-maturity securities. Held-to-maturity securities include U.S. Government-sponsored agency securities and municipal bonds issued by various municipal government entities primarily located in the Chicago metropolitan area and southern Wisconsin. Fair values for held-to-maturity securities are typically based on prices obtained from independent pricing vendors. In accordance with ASC 820, the Company has categorized held-to-maturity securities as a Level 2 fair value measurement. Loans. Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are analyzed by type such as commercial, residential real estate, etc. Each category is further segmented by interest rate type (fixed and variable) and term. For variable-rate loans that reprice frequently, estimated fair values are based on carrying values. The fair value of residential loans is based on secondary market sources for securities backed by similar loans, adjusted for differences in loan characteristics. The fair value for other fixed rate loans is estimated by discounting scheduled cash flows through the estimated maturity using estimated market discount rates that reflect credit and interest rate risks inherent in the loan. The primary impact of credit risk on the present value of the loan portfolio, however, was assessed through the use of the allowance for loan losses, which is believed to represent the current fair value of probable incurred losses for purposes of the fair value calculation. In accordance with ASC 820, the Company has categorized loans as a Level 3 fair value measurement. Deposits with stated maturities. The fair value of certificates of deposit is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently in effect for deposits of similar remaining maturities. In accordance with ASC 820, the Company has categorized deposits with stated maturities as a Level 3 fair value measurement. FHLB advances. The fair value of FHLB advances is obtained from the FHLB which uses a discounted cash flow analysis based on current market rates of similar maturity debt securities to discount cash flows. In accordance with ASC 820, the Company has categorized FHLB advances as a Level 3 fair value measurement. Subordinated notes. The fair value of the subordinated notes is based on a market price obtained from an independent pricing vendor. In accordance with ASC 820, the Company has categorized subordinated notes as a Level 2 fair value measurement. Junior subordinated debentures. The fair value of the junior subordinated debentures is based on the discounted value of contractual cash flows. In accordance with ASC 820, the Company has categorized junior subordinated debentures as a Level 3 fair value measurement. Also, the Company may be required, from time to time, to measure certain other financial assets at fair value on a nonrecurring basis in accordance with GAAP. These adjustments to fair value usually result from impairment charges on individual assets. The Company is required under applicable accounting guidance to report the fair value of all financial instruments on the consolidated statements of condition, including those financial instruments carried at cost. |
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Stock-Based Compensation, Policy | Stock-based compensation is measured as the fair value of an award on the date of grant, and the measured cost is recognized over the period which the recipient is required to provide service in exchange for the award. The fair values of restricted share and performance-based stock awards are determined based on the average of the high and low trading prices on the grant date, and the fair value of stock options is estimated using a Black-Scholes option-pricing model that utilizes the assumptions outlined in the following table. Option-pricing models require the input of highly subjective assumptions and are sensitive to changes in the option's expected life and the price volatility of the underlying stock, which can materially affect the fair value estimate. Expected life of options granted since the inception of the LTIP awards has been based on the safe harbor rule of the SEC Staff Accounting Bulletin No. 107 “Share-Based Payment” as the Company believes historical exercise data may not provide a reasonable basis to estimate the expected term of these options. Expected stock price volatility is based on historical volatility of the Company's common stock, which correlates with the expected life of the options, and the risk-free interest rate is based on comparable U.S. Treasury rates. Management reviews and adjusts the assumptions used to calculate the fair value of an option on a periodic basis to better reflect expected trends. |
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Share-based Compensation, Option and Incentive Plans, Policy | Stock based compensation is recognized based upon the number of awards that are ultimately expected to vest, taking into account expected forfeitures. In addition, for performance-based awards, an estimate is made of the number of shares expected to vest as a result of actual performance against the performance criteria in the award to determine the amount of compensation expense to recognize. The estimate is reevaluated periodically and total compensation expense is adjusted for any change in estimate in the current period. |
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Earnings Per Share, Policy | Potentially dilutive common shares can result from stock options, restricted stock unit awards, stock warrants, the Company’s convertible preferred stock and shares to be issued under the Employee Stock Purchase Plan and the Directors Deferred Fee and Stock Plan, being treated as if they had been either exercised or issued, computed by application of the treasury stock method. While potentially dilutive common shares are typically included in the computation of diluted earnings per share, potentially dilutive common shares are excluded from this computation in periods in which the effect would reduce the loss per share or increase the income per share. For diluted earnings per share, net income applicable to common shares can be affected by the conversion of the Company’s convertible preferred stock. Where the effect of this conversion would reduce the loss per share or increase the income per share, net income applicable to common shares is not adjusted by the associated preferred dividends. |
Business Combinations (Tables) |
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of FDIC Indemnification Asset | The following table summarizes the activity in the Company’s FDIC indemnification (liability) asset during the periods indicated:
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Investment Securities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale Securities and Held-to-maturity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Marketable Securities | The following tables are a summary of the available-for-sale and held-to-maturity securities portfolios as of the dates shown:
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Investment Securities, Continuous Unrealized Loss Position, Fair Value | The following table presents the portion of the Company’s available-for-sale and held-to-maturity securities portfolios which has gross unrealized losses, reflecting the length of time that individual securities have been in a continuous unrealized loss position at September 30, 2016:
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Schedule of Realized Gain (Loss) | The following table provides information as to the amount of gross gains and gross losses realized and proceeds received through the sale or call of investment securities:
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Investments Classified by Contractual Maturity Date | The amortized cost and fair value of securities as of September 30, 2016, December 31, 2015 and September 30, 2015, by contractual maturity, are shown in the following table. Contractual maturities may differ from actual maturities as borrowers may have the right to call or repay obligations with or without call or prepayment penalties. Mortgage-backed securities are not included in the maturity categories in the following maturity summary as actual maturities may differ from contractual maturities because the underlying mortgages may be called or prepaid without penalties:
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Loans (Tables) |
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Loans and Leases Receivable Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Loan Portfolio | The following table shows the Company’s loan portfolio by category as of the dates shown:
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Schedule of Unpaid Principal Balance and Carrying Value of Acquired Loans | The following table presents the unpaid principal balance and carrying value for these acquired loans:
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Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period | The following table provides estimated details as of the date of acquisition on loans acquired in 2016 with evidence of credit quality deterioration since origination:
(1) Represents undiscounted expected principal and interest cash at acquisition. |
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Activity Related to Accretable Yield of Loans Acquired With Evidence of Credit Quality Deterioratio Since Origination | The following table provides activity for the accretable yield of PCI loans:
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Allowance for Loan Losses, Allowance for Losses on Lending-Related Commitments and Impaired Loans (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Aging of the Company's Loan Portfolio | The tables below show the aging of the Company’s loan portfolio at September 30, 2016, December 31, 2015 and September 30, 2015:
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Summary of Performance by Loan Class | The following table presents the recorded investment based on performance of loans by class, excluding covered loans, per the most recent analysis at September 30, 2016, December 31, 2015 and September 30, 2015:
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Summary of Activity in the Allowance for Credit Losses | A summary of activity in the allowance for credit losses by loan portfolio (excluding covered loans) for the three and nine months ended September 30, 2016 and 2015 is as follows:
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Summary of Activity in the Allowance for Covered Loan Losses | A summary of activity in the allowance for covered loan losses for the three and nine months ended September 30, 2016 and 2015 is as follows:
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Summary of Impaired Loans, Including Restructured Loans | A summary of impaired loans, including troubled debt restructurings ("TDRs"), is as follows:
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Summary of Impaired Loans by Loan Class | The following tables present impaired loans by loan class, excluding covered loans, for the periods ended as follows:
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Summary of the Post-Modification Balance of TDRs |
The tables below present a summary of the post-modification balance of loans restructured during the three and nine months ended September 30, 2016 and 2015, respectively, which represent TDRs:
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Summary of TDRs Subsequent Default Under the Restructured Terms | The following table presents a summary of all loans restructured in TDRs during the twelve months ended September 30, 2016 and 2015, and such loans which were in payment default under the restructured terms during the respective periods below:
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Goodwill and Other Intangible Assets (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill Assets by Business Segment | A summary of the Company’s goodwill assets by business segment is presented in the following table:
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Summary of Finite-Lived Intangible Assets | A summary of finite-lived intangible assets as of the dates shown and the expected amortization as of September 30, 2016 is as follows:
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Estimated Amortization |
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Deposits (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Deposits | The following table is a summary of deposits as of the dates shown:
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Federal Home Loan Bank Advances, Other Borrowings and Subordinated Notes (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Debt | The following table is a summary of notes payable, FHLB advances, other borrowings and subordinated notes as of the dates shown:
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Summary of Pledged Securities Related to Securities Sold Under Repurchase Agreements | The following is a summary of these securities pledged as of September 30, 2016 disaggregated by investment category and maturity, and reconciled to the outstanding balance of securities sold under repurchase agreements:
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Junior Subordinated Debentures (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Junior Subordinated Debentures | The following table provides a summary of the Company’s junior subordinated debentures as of September 30, 2016. The junior subordinated debentures represent the par value of the obligations owed to the Trusts.
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Segment Information (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Segment Information | The following is a summary of certain operating information for reportable segments:
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Derivative Financial Instruments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest Rate Cap Derivative Summary | Below is a summary of the interest rate cap derivatives held by the Company as of September 30, 2016:
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Schedule Of Fair Value Of Derivative Financial Instruments | The table below presents the fair value of the Company’s derivative financial instruments as of September 30, 2016, December 31, 2015 and September 30, 2015:
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Schedule Of Cash Flow Hedging Instruments | The table below provides details on each of these cash flow hedges as of September 30, 2016:
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Rollforward Of Amounts In Accumulated Other Comprehensive Income Related To Interest Rate Swaps Designated As Cash Flow Hedges | A rollforward of the amounts in accumulated other comprehensive loss related to interest rate derivatives designated as cash flow hedges follows:
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Derivatives Used To Hedge Changes In Fair Value Attributable To Interest Rate Risk | The following table presents the gain/(loss) and hedge ineffectiveness recognized on derivative instruments and the related hedged items that are designated as a fair value hedge accounting relationship as of September 30, 2016 and 2015:
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Summary Amounts Included In Consolidated Statement Of Income Related To Derivatives | Amounts included in the Consolidated Statements of Income related to derivative instruments not designated in accounting hedge relationships were as follows:
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Offsetting Assets | The tables below summarize the Company's interest rate derivatives and offsetting positions as of the dates shown.
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Offsetting Liabilities | The tables below summarize the Company's interest rate derivatives and offsetting positions as of the dates shown.
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Fair Values of Assets and Liabilities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of Balances Of Assets And Liabilities Measured At Fair Value On A Recurring Basis | The following tables present the balances of assets and liabilities measured at fair value on a recurring basis for the periods presented:
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Summary Of Changes In Level 3 Assets And Liabilities Measured At Fair Value On A Recurring Basis | The changes in Level 3 assets measured at fair value on a recurring basis during the three and nine months ended September 30, 2016 and 2015 are summarized as follows:
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Summary Of Assets Measured At Fair Value On A Nonrecurring Basis | For assets measured at fair value on a nonrecurring basis that were still held in the balance sheet at the end of the period, the following table provides the carrying value of the related individual assets or portfolios at September 30, 2016.
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Schedule Of Valuation Techniques And Significant Unobservable Inputs Used To Measure Both Recurring And Non-Recurring | The valuation techniques and significant unobservable inputs used to measure both recurring and non-recurring Level 3 fair value measurements at September 30, 2016 were as follows:
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Summary Of Carrying Amounts And Estimated Fair Values Of Financial Instruments | The table below presents the carrying amounts and estimated fair values of the Company’s financial instruments as of the dates shown:
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Stock-Based Compensation Plans (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted Average Assumptions Used To Determine The Options Fair Value | The following table presents the weighted average assumptions used to determine the fair value of options granted in the nine month periods ending September 30, 2016 and 2015.
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Summary Of Stock Option Activity | A summary of the Company's stock option activity for the nine months ended September 30, 2016 and September 30, 2015 is presented below:
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Summary Of Plans' Restricted Share And Performance-Vested Stock Award Activity | A summary of the Plans' restricted share activity for the nine months ended September 30, 2016 and September 30, 2015 is presented below:
A summary of the Plans' performance-based stock award activity, based on the target level of the awards, for the nine months ended September 30, 2016 and September 30, 2015 is presented below:
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Shareholders' Equity and Earnings Per Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share, Basic and Diluted, Other Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components Of Other Comprehensive Income (Loss) | The following tables summarize the components of other comprehensive income (loss), including the related income tax effects, and the related amount reclassified to net income for the periods presented (in thousands).
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Other Comprehensive Income Reclassified from AOCI |
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Computation Of Basic And Diluted Earnings Per Common Share | The following table shows the computation of basic and diluted earnings per share for the periods indicated:
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Recent Accounting Developments (Narrative) (Details) - USD ($) $ in Millions |
Dec. 31, 2015 |
Sep. 30, 2015 |
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Accounting Changes and Error Corrections [Abstract] | ||
Debt issuance costs | $ 7.8 | $ 8.7 |
Business Combinations (Summary of FDIC Indemnification Asset) (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
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Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
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FDIC Indemnification Asset [Roll Forward] | ||||
Balance at beginning of period | $ (11,729) | $ 3,429 | $ (6,100) | $ 11,846 |
Additions from acquisitions | 0 | 0 | 0 | 0 |
Additions from reimbursable expenses | 21 | 1,039 | 752 | 3,548 |
Accretion (amortization) | 4 | (718) | (189) | (3,184) |
Changes in expected reimbursements from the FDIC for changes in expected credit losses | (4,537) | (5,236) | (10,284) | (13,546) |
Payments received from the FDIC | (1,704) | (1,547) | (2,124) | (1,697) |
Balance at end of period | $ (17,945) | $ (3,033) | $ (17,945) | $ (3,033) |
Investment Securities (Schedule of Realized Gain (Loss)) (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Available-for-sale Securities and Held-to-maturity Securities [Abstract] | ||||
Realized gains | $ 3,429 | $ 87 | $ 7,466 | $ 654 |
Realized losses | (124) | (185) | (1,396) | (252) |
Net realized gains (losses) | 3,305 | (98) | 6,070 | 402 |
Other than temporary impairment charges | 0 | 0 | 0 | 0 |
Gains (losses) on investment securities, net | 3,305 | (98) | 6,070 | 402 |
Proceeds from sales and calls of available-for-sale securities | 1,114,666 | 82,827 | 2,186,662 | 1,216,860 |
Proceeds from calls of held-to-maturity securities | $ 141,885 | $ 0 | $ 423,866 | $ 0 |
Investment Securities (Narrative) (Detail) $ in Millions |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Dec. 31, 2015
USD ($)
|
Sep. 30, 2016
USD ($)
securities
|
Sep. 30, 2015
USD ($)
|
|
Available-for-sale Securities and Held-to-maturity Securities [Abstract] | |||
Available-for-sale securities, transferred to held-to-maturity securities | $ 862.7 | $ 0.0 | |
Available-for-sale securities, transferred to held-to-maturity, unrealized gain (loss) | 14.4 | ||
Pledged Securities, carrying value | $ 1,200.0 | $ 1,400.0 | $ 1,300.0 |
Number of securities by a single non-goverment sponsored issuer exceeding 10% of shareholders' equity | securities | 0 |
Loans (Schedule of Unpaid Principal Balance And Carrying Value Of Acquired Loans) (Detail) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Bank acquisitions | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | ||
Unpaid Principal Balance | $ 278,862 | $ 326,470 |
Carrying Value | 233,340 | 271,260 |
Life insurance premium finance loans acquisition | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | ||
Unpaid Principal Balance | 266,618 | 372,738 |
Carrying Value | $ 262,887 | $ 368,292 |
Loans (Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period) (Details) - Generations Bancorp Inc. $ in Thousands |
Mar. 31, 2016
USD ($)
|
---|---|
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | |
Contractually required payments including interest | $ 20,091 |
Less: Nonaccretable difference | 4,009 |
Cash flows expected to be collected | 16,082 |
Less: Accretable yield | 1,082 |
Fair value of PCI loans acquired | $ 15,000 |
Loans (Activity Related to Accretable Yield of Loans Acquired With Evidence of Credit Quality Deterioration Since Origination) (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||||
Accretable yield, beginning balance | $ 55,630 | $ 63,643 | $ 63,902 | $ 79,102 |
Acquisitions | 0 | 10,407 | 1,082 | 11,305 |
Accretable yield amortized to interest income | (6,449) | (5,939) | (17,105) | (18,359) |
Accretable yield amortized to indemnification asset/liability | (1,744) | (3,280) | (5,539) | (10,945) |
Reclassification from non-accretable difference | 5,370 | 2,298 | 12,099 | 5,154 |
Increases (decreases) in interest cash flows due to payments and changes in interest rates | 170 | (610) | (1,462) | 262 |
Accretable yield, ending balance | 52,977 | $ 66,519 | 52,977 | $ 66,519 |
Accretable yield, to be amortized to indemnification asset | $ 1,500 | $ 1,500 |
Loans (Narrative) (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Dec. 31, 2015 |
|
Schedule Of Accretable Yield Activity Related to Loans Acquired With Evidence Of Credit Quality Deterioration Since Origination Table [Line Items] | |||||
Net deferred loan fees and costs and fair value accounting adjustments | $ 873 | $ (18,800) | $ 873 | $ (18,800) | $ (9,200) |
Accretable yield amortized to interest income | (6,449) | (5,939) | (17,105) | (18,359) | |
Premium finance receivables | |||||
Schedule Of Accretable Yield Activity Related to Loans Acquired With Evidence Of Credit Quality Deterioration Since Origination Table [Line Items] | |||||
Unearned income portion of premium finance receivables | $ 64,400 | $ 53,400 | $ 64,400 | $ 53,400 | $ 56,700 |
Allowance for Loan Losses, Allowance for Losses on Lending-Related Commitments and Impaired Loans (Summary of Activity in the Allowance for Covered Loan Losses) (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Allowance for Covered Loan Losses [Roll Forward] | ||||
Balance at beginning of period | $ 2,412 | $ 2,215 | $ 3,026 | $ 2,131 |
Provision for covered loan losses before benefit attributable to FDIC loss share agreements | (847) | (1,716) | (3,495) | (3,339) |
Benefit attributable to FDIC loss share agreements | 677 | 1,373 | 2,796 | 2,671 |
Net provision for covered loan losses | (170) | (343) | (699) | (668) |
Increase/decrease in FDIC indemnification liability/asset | (677) | (1,373) | (2,796) | (2,671) |
Loans charged-off | (918) | (287) | (1,291) | (664) |
Recoveries of loans charged-off | 775 | 2,706 | 3,182 | 4,790 |
Net (charge-offs) recoveries | (143) | 2,419 | 1,891 | 4,126 |
Balance at end of period | $ 1,422 | $ 2,918 | $ 1,422 | $ 2,918 |
Allowance for Loan Losses, Allowance for Losses on Lending-Related Commitments and Impaired Loans (Summary of Impaired Loans, Including Restructured Loans) (Detail) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
---|---|---|---|
Financing Receivable, Impaired [Line Items] | |||
Impaired loans with an allowance for loan loss required | $ 39,022 | $ 49,961 | $ 51,113 |
Impaired loans with no allowance for loan loss required | 51,518 | 51,294 | 61,914 |
Total impaired loans | 90,540 | 101,255 | 113,027 |
Allowance for loan losses related to impaired loans | 6,836 | 6,380 | 8,483 |
Financing Receivable | |||
Financing Receivable, Impaired [Line Items] | |||
Allowance for loan losses related to impaired loans | 2,800 | ||
TDRs | $ 44,276 | $ 51,853 | $ 59,320 |
Allowance for Loan Losses, Allowance for Losses on Lending-Related Commitments and Impaired Loans (Narrative) (Detail) |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|---|
Sep. 30, 2016
USD ($)
contracts
Rate
|
Sep. 30, 2015
USD ($)
contracts
Rate
|
Sep. 30, 2016
USD ($)
contracts
Rate
|
Sep. 30, 2015
USD ($)
contracts
Rate
|
Sep. 30, 2016
USD ($)
Loan
|
Sep. 30, 2015
USD ($)
Loan
|
Dec. 31, 2015
USD ($)
|
|
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||
TDRs, number | 2 | 1 | 15 | 10 | 17 | 15 | |
Allowance for loan losses related to impaired loans | $ 6,836,000 | $ 8,483,000 | $ 6,836,000 | $ 8,483,000 | $ 6,836,000 | $ 8,483,000 | $ 6,380,000 |
TDRs, Additions | $ 71,000 | $ 222,000 | $ 9,449,000 | $ 1,833,000 | 9,650,000 | 5,648,000 | |
Weighted average extension term | 22 months | 214 months | 6 months | 49 months | |||
Weighted average stated interest rate, basis points | Rate | 1.50% | 3.38% | 0.30% | 3.58% | |||
Weighted average interest only term | 6 months | 28 months | |||||
Loan forgiveness | $ 0 | $ 0 | $ 300,000 | $ 0 | |||
Financing Receivable | |||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||
TDRs | 44,276,000 | 59,320,000 | $ 44,276,000 | 59,320,000 | 44,276,000 | $ 59,320,000 | $ 51,853,000 |
TDRs, number | contracts | 89 | ||||||
Allowance for loan losses related to impaired loans | 2,800,000 | $ 2,800,000 | 2,800,000 | ||||
Interest income, passage of time | 98,000 | $ 98,000 | 323,000 | $ 385,000 | |||
Residential Real Estate | Financing Receivable | |||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||
Foreclosed residential properties | $ 11,700,000 | $ 11,700,000 | $ 11,700,000 |
Goodwill And Other Intangible Assets (Goodwill Assets by Business Segment) (Detail) $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2016
USD ($)
| |
Goodwill [Roll Forward] | |
Beginning balance | $ 471,761 |
Goodwill Acquired | 11,470 |
Impairment Loss | 0 |
Goodwill Adjustments | 2,707 |
Ending balance | 485,938 |
Community banking | |
Goodwill [Roll Forward] | |
Beginning balance | 401,612 |
Goodwill Acquired | 11,470 |
Impairment Loss | 0 |
Goodwill Adjustments | 1,517 |
Ending balance | 414,599 |
Specialty finance | |
Goodwill [Roll Forward] | |
Beginning balance | 38,035 |
Goodwill Acquired | 0 |
Impairment Loss | 0 |
Goodwill Adjustments | 1,190 |
Ending balance | 39,225 |
Wealth management | |
Goodwill [Roll Forward] | |
Beginning balance | 32,114 |
Goodwill Acquired | 0 |
Impairment Loss | 0 |
Goodwill Adjustments | 0 |
Ending balance | $ 32,114 |
Goodwill And Other Intangible Assets (Summary of Finite-Lived Intangible Assets) (Detail) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
---|---|---|---|
Finite-Lived Intangible Assets [Line Items] | |||
Total other intangible assets, net | $ 20,736 | $ 24,209 | $ 25,533 |
Core deposit intangibles | Community banking | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 34,998 | 34,841 | 34,840 |
Accumulated amortization | (20,598) | (17,382) | (16,195) |
Net carrying amount | 14,400 | 17,459 | 18,645 |
Customer list intangibles | Specialty finance | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 1,800 | 1,800 | 1,800 |
Accumulated amortization | (1,129) | (1,052) | (1,027) |
Net carrying amount | 671 | 748 | 773 |
Customer list and other intangibles | Wealth management | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 7,940 | 7,940 | 7,940 |
Accumulated amortization | (2,275) | (1,938) | (1,825) |
Net carrying amount | $ 5,665 | $ 6,002 | $ 6,115 |
Goodwill And Other Intangible Assets (Estimated Amortization) (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Actual in nine months ended September 30, 2016 | $ 1,085 | $ 1,350 | $ 3,631 | $ 3,297 |
Estimated remaining in 2016 | 1,057 | 1,057 | ||
Estimated—2017 | 3,902 | 3,902 | ||
Estimated—2018 | 3,395 | 3,395 | ||
Estimated—2019 | 2,875 | 2,875 | ||
Estimated—2020 | $ 2,334 | $ 2,334 |
Deposits (Summary of Deposits) (Detail) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
---|---|---|---|
Balance: | |||
Non-interest bearing | $ 5,711,042 | $ 4,836,420 | $ 4,705,994 |
NOW and interest bearing demand deposits | 2,552,611 | 2,390,217 | 2,231,258 |
Wealth management deposits | 2,283,233 | 1,643,653 | 1,469,920 |
Money market | 4,421,631 | 4,041,300 | 4,001,518 |
Savings | 1,977,661 | 1,723,367 | 1,684,007 |
Time certificates of deposit | 4,201,477 | 4,004,677 | 4,135,772 |
Total deposits | $ 21,147,655 | $ 18,639,634 | $ 18,228,469 |
Mix: | |||
Non-interest bearing | 27.00% | 26.00% | 26.00% |
NOW and interest bearing demand deposits | 12.00% | 13.00% | 12.00% |
Wealth management deposits | 11.00% | 9.00% | 8.00% |
Money market | 21.00% | 22.00% | 22.00% |
Savings | 9.00% | 9.00% | 9.00% |
Time certificates of deposit | 20.00% | 21.00% | 23.00% |
Total deposits | 100.00% | 100.00% | 100.00% |
Federal Home Loan Bank Advances, Other Borrowings and Subordinated Notes (Summary of Debt) (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
---|---|---|---|
Debt Disclosure [Abstract] | |||
FHLB advances | $ 419,632 | $ 853,431 | $ 443,955 |
Other borrowings: | |||
Notes payable | 56,191 | 67,429 | 71,250 |
Short-term borrowings | 33,173 | 63,887 | 57,590 |
Other | 18,360 | 18,965 | 18,332 |
Secured borrowings | 133,642 | 115,504 | 112,633 |
Total other borrowings | 241,366 | 265,785 | 259,805 |
Subordinated notes | 138,943 | 138,861 | 138,834 |
Total FHLB advances, other borrowings and subordinated notes | $ 799,941 | $ 1,258,077 | $ 842,594 |
Segment Information (Narrative) (Detail) |
9 Months Ended |
---|---|
Sep. 30, 2016
segment
subsidiary
| |
Segment Reporting Information [Line Items] | |
Number of reportable segments | 3 |
Number Of Subsidiaries | subsidiary | 15 |
Community banking | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | 1 |
Derivative Financial Instruments (Rollforward Of Amounts In Accumulated Other Comprehensive Income Related To Interest Rate Swaps Designated As Cash Flow Hedges) (Detail) - Interest Rate Contract - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Rollforward of AOCI from Cash Flow Hedging Derivatives [Roll Forward] | ||||
Unrealized loss at beginning of period | $ (3,574) | $ (4,408) | $ (3,529) | $ (4,062) |
Amount reclassified from accumulated other comprehensive income to interest expense on deposits and junior subordinated debentures | 1,065 | 571 | 2,620 | 1,460 |
Amount of gain (loss) recognized in other comprehensive income | 1,708 | (503) | 108 | (1,738) |
Unrealized loss at end of period | $ (801) | $ (4,340) | $ (801) | $ (4,340) |
Derivative Financial Instruments (Derivatives Used To Hedge Changes In Fair Value Attributable To Interest Rate Risk) (Detail) - Fair Value Hedging - Designated as Hedging Instrument - Interest Rate Contract - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Derivative [Line Items] | ||||
Amount of Gain or (Loss) Recognized in Income on Derivative | $ 269 | $ (323) | $ (614) | $ (338) |
Amount of Gain or (Loss) Recognized in Income on Hedged Item | (234) | 302 | 627 | 315 |
Income Statement Gain/(Loss) due to Hedge Ineffectiveness | $ 35 | $ (21) | $ 13 | $ (23) |
Derivative Financial Instruments (Summary Amounts Included In Consolidated Statement Of Income Related To Derivatives) (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Interest Rate Swaps and Caps | Trading (losses) gains, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) on derivative instruments | $ (395) | $ (275) | $ (751) | $ (592) |
Mortgage Banking Derivatives | Mortgage banking revenue | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) on derivative instruments | (2,215) | (4,062) | (3,058) | (1,669) |
Covered Call Options | Fees from covered call options | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) on derivative instruments | 3,633 | 2,810 | 9,994 | 11,735 |
Foreign Exchange Contract | Trading (losses) gains, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) on derivative instruments | $ (26) | $ 113 | $ (262) | $ 133 |
Stock-Based Compensation Plans (Weighted Average Assumptions Used To Determine The Options Fair Value) (Detail) |
9 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Share-based Compensation [Abstract] | ||
Expected dividend yield | 0.90% | 0.90% |
Expected volatility | 25.20% | 26.50% |
Risk-free rate | 1.30% | 1.30% |
Expected option life (in years) | 4 years 6 months | 4 years 6 months |
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