MB FINANCIAL, INC. | ||||
(Exact name of registrant as specified in its charter) | ||||
Maryland | 001-36599 | 36-4460265 | ||
(State or other jurisdiction of incorporation) | (Commission File No.) | (IRS Employer Identification No.) | ||
800 West Madison Street, Chicago, Illinois 60607 | ||||
(Address of principal executive offices) (Zip Code) | ||||
Registrant’s telephone number, including area code: (888) 422-6562 | ||||
N/A | ||||
(Former name or former address, if changed since last report) | ||||
MB FINANCIAL, INC. | ||||
Date: | April 18, 2016 | By: | /s/Jill E. York | |
Jill E. York | ||||
Vice President and Chief Financial Officer | ||||
(Principal Financial Officer) |
99 | MB Financial Inc.’s April 18, 2016 press release announcing its first quarter 2016 results of operations. |
MB Financial, Inc. | ||||
800 West Madison Street | ||||
Chicago, Illinois 60607 | ||||
(888) 422-6562 | ||||
NASDAQ: MBFI |
1Q16 | 4Q15 | 1Q15 | ||||||||||
Net income - as reported | $ | 39,114 | $ | 43,607 | $ | 34,111 | ||||||
Less non-core items: | ||||||||||||
Net loss on investment securities | — | (3 | ) | (460 | ) | |||||||
Net (loss) gain on sale of other assets | (48 | ) | — | 4 | ||||||||
Merger related and repositioning expenses | (3,287 | ) | 4,186 | (8,069 | ) | |||||||
Prepayment fees on interest bearing liabilities | — | — | (85 | ) | ||||||||
Total non-core items | (3,335 | ) | 4,183 | (8,610 | ) | |||||||
Income tax expense on non-core items | (577 | ) | 1,140 | (3,417 | ) | |||||||
Non-core items, net of tax | (2,758 | ) | 3,043 | (5,193 | ) | |||||||
Operating earnings | 41,872 | 40,564 | 39,304 | |||||||||
Dividends on preferred shares | 2,000 | 2,000 | 2,000 | |||||||||
Operating earnings available to common stockholders | $ | 39,872 | $ | 38,564 | $ | 37,304 | ||||||
Diluted operating earnings per common share | $ | 0.54 | $ | 0.52 | $ | 0.50 | ||||||
Weighted average common shares outstanding for diluted operating earnings per common share | 73,966,935 | 73,953,165 | 75,164,716 |
• | Net interest income on a fully tax equivalent basis decreased $2.6 million (-2.0%) to $126.5 million in the first quarter of 2016 compared to the prior quarter due to one less day in the quarter (approximately $1.4 million) and lower accretion income on loans acquired in the Taylor Capital merger ($2.4 million) partially offset by net interest income related to an increase in average interest earning asset balances. |
• | Our net interest margin on a fully tax equivalent basis, excluding accretion on loans acquired in the Taylor Capital merger, was stable at 3.55% compared to 3.56% last quarter. |
• | Our core non-interest income was $81.7 million compared to $75.1 million in the prior quarter (8.9% increase). The improvement was largely driven by an increase in fees and promotional revenue (lease financing) from the sale of third-party equipment maintenance contracts as well as trust and asset management fees which increased primarily due to $1.7 million in fees from MSA Holdings, LLC ("MSA"), which we acquired on December 31, 2015. |
• | Our core non-interest expense increased $1.7 million (+1.3%) compared to the prior quarter primarily due to an increase in leasing commission expense (salaries and employee benefits) as a result of higher lease financing revenues. |
• | Loan balances, excluding purchased credit-impaired loans, increased $168.3 million (+1.7%, or +7.0% annualized) during the first quarter of 2016. |
Change from 12/31/2015 to 3/31/2016 | |||||||||||||||
(Dollars in thousands) | 3/31/2016 | 12/31/2015 | Amount | Percent | |||||||||||
Commercial-related credits: | |||||||||||||||
Commercial loans | $ | 3,509,604 | $ | 3,616,286 | $ | (106,682 | ) | (3.0 | )% | ||||||
Commercial loans collateralized by assignment of lease payments (lease loans) | 1,774,104 | 1,779,072 | (4,968 | ) | (0.3 | ) | |||||||||
Commercial real estate | 2,831,814 | 2,695,676 | 136,138 | 5.1 | |||||||||||
Construction real estate | 310,278 | 252,060 | 58,218 | 23.1 | |||||||||||
Total commercial-related credits | 8,425,800 | 8,343,094 | 82,706 | 1.0 | |||||||||||
Other loans: | |||||||||||||||
Residential real estate | 677,791 | 628,169 | 49,622 | 7.9 | |||||||||||
Indirect vehicle | 432,915 | 384,095 | 48,820 | 12.7 | |||||||||||
Home equity | 207,079 | 216,573 | (9,494 | ) | (4.4 | ) | |||||||||
Consumer loans | 77,318 | 80,661 | (3,343 | ) | (4.1 | ) | |||||||||
Total other loans | 1,395,103 | 1,309,498 | 85,605 | 6.5 | |||||||||||
Total loans, excluding purchased credit-impaired | 9,820,903 | 9,652,592 | 168,311 | 1.7 | |||||||||||
Purchased credit-impaired | 140,445 | 141,406 | (961 | ) | (0.7 | ) | |||||||||
Total loans | $ | 9,961,348 | $ | 9,793,998 | $ | 167,350 | 1.7 | % |
• | Total low cost deposits continued to represent 84% of total deposits at March 31, 2016 and non-interest bearing deposits continued to comprise 40% of total deposits. |
Change from 12/31/2015 to 3/31/2016 | |||||||||||||||
(Dollars in thousands) | 3/31/2016 | 12/31/2015 | Amount | Percent | |||||||||||
Low cost deposits: | |||||||||||||||
Noninterest bearing deposits | $ | 4,667,410 | $ | 4,627,184 | $ | 40,226 | 0.9 | % | |||||||
Money market and NOW | 4,048,054 | 4,144,633 | (96,579 | ) | (2.3 | ) | |||||||||
Savings | 991,300 | 974,555 | 16,745 | 1.7 | |||||||||||
Total low cost deposits | 9,706,764 | 9,746,372 | (39,608 | ) | (0.4 | ) | |||||||||
Certificates of deposit: | |||||||||||||||
Certificates of deposit | 1,255,457 | 1,244,292 | 11,165 | 0.9 | |||||||||||
Brokered certificates of deposit | 571,605 | 514,551 | 57,054 | 11.1 | |||||||||||
Total certificates of deposit | 1,827,062 | 1,758,843 | 68,219 | 3.9 | |||||||||||
Total deposits | $ | 11,533,826 | $ | 11,505,215 | $ | 28,611 | 0.2 | % |
• | Provision for credit losses was $7.6 million in the first quarter of 2016 compared to $6.8 million in the fourth quarter of 2015. |
• | Our net loan charge-offs during the first quarter of 2016 were $1.3 million, or 0.06% of loans (annualized), compared to net loan charge-offs of $3.3 million, or 0.14% of loans (annualized), in the fourth quarter of 2015. |
• | Non-performing loans and non-performing assets decreased by $9.9 million and $13.1 million, respectively, from December 31, 2015 primarily due to loans that paid off during the quarter. |
• | Potential problem loans decreased by $29.7 million from December 31, 2015 primarily due to loans that paid off during the quarter. |
• | Our allowance for loan and lease losses to total loans ratio was 1.35% at March 31, 2016 compared to 1.31% at December 31, 2015. |
• | The transaction was approved by American Chartered shareholders in March 2016. |
• | The merger remains subject to regulatory approval and is expected to close around June 30, 2016. |
Change from 4Q15 to 1Q16 | Change from 1Q15 to 1Q16 | |||||||||||||||||
(Dollars in thousands) | 1Q16 | 4Q15 | 1Q15 | |||||||||||||||
Net interest income - fully tax equivalent | $ | 126,499 | $ | 129,076 | -2.0 | % | $ | 119,473 | +5.9 | % | ||||||||
Net interest income - fully tax equivalent, excluding acquisition accounting discount accretion on Taylor Capital loans | $ | 119,146 | $ | 119,373 | -0.2 | % | $ | 110,897 | +7.4 | % | ||||||||
Net interest margin - fully tax equivalent | 3.79 | % | 3.86 | % | -0.07 | % | 3.93 | % | -0.14 | |||||||||
Net interest margin - fully tax equivalent, excluding acquisition accounting discount accretion on Taylor Capital loans | 3.55 | % | 3.56 | % | -0.01 | % | 3.62 | % | -0.07 |
1Q16 | 4Q15 | 3Q15 | 2Q15 | 1Q15 | ||||||||||||||||
Core non-interest income: | ||||||||||||||||||||
Key fee initiatives: | ||||||||||||||||||||
Lease financing revenues, net | $ | 19,046 | $ | 15,937 | $ | 20,000 | $ | 15,564 | $ | 25,080 | ||||||||||
Mortgage banking revenue | 27,482 | 26,542 | 30,692 | 35,648 | 24,544 | |||||||||||||||
Commercial deposit and treasury management fees | 11,878 | 11,711 | 11,472 | 11,062 | 11,038 | |||||||||||||||
Trust and asset management fees | 7,950 | 6,077 | 6,002 | 5,752 | 5,714 | |||||||||||||||
Card fees | 3,525 | 3,651 | 3,335 | 4,409 | 3,927 | |||||||||||||||
Capital markets and international banking service fees | 3,227 | 2,355 | 2,357 | 1,508 | 1,928 | |||||||||||||||
Total key fee initiatives | 73,108 | 66,273 | 73,858 | 73,943 | 72,231 | |||||||||||||||
Consumer and other deposit service fees | 3,025 | 3,440 | 3,499 | 3,260 | 3,083 | |||||||||||||||
Brokerage fees | 1,158 | 1,252 | 1,281 | 1,543 | 1,678 | |||||||||||||||
Loan service fees | 1,752 | 1,890 | 1,531 | 1,353 | 1,485 | |||||||||||||||
Increase in cash surrender value of life insurance | 854 | 864 | 852 | 836 | 839 | |||||||||||||||
Other operating income | 1,836 | 1,344 | 1,730 | 2,098 | 2,102 | |||||||||||||||
Total core non-interest income | 81,733 | 75,063 | 82,751 | 83,033 | 81,418 | |||||||||||||||
Non-core non-interest income: | ||||||||||||||||||||
Net gain (loss) on investment securities | — | (3 | ) | 371 | (84 | ) | (460 | ) | ||||||||||||
Net (loss) gain on sale of other assets | (48 | ) | — | 1 | (7 | ) | 4 | |||||||||||||
(Decrease) increase in market value of assets held in trust for deferred compensation (1) | 8 | 565 | (872 | ) | 7 | 306 | ||||||||||||||
Total non-core non-interest income | (40 | ) | 562 | (500 | ) | (84 | ) | (150 | ) | |||||||||||
Total non-interest income | $ | 81,693 | $ | 75,625 | $ | 82,251 | $ | 82,949 | $ | 81,268 |
(1) | Resides in other operating income in the consolidated statements of operations. |
• | Lease financing revenues increased due to an increase in fees and promotional revenue from the sale of third-party equipment maintenance contracts. |
• | Trust and asset management fees increased primarily due to the acquisition of MSA. |
• | Mortgage banking revenue increased due to higher mortgage servicing fees partly offset by a decrease in mortgage origination fees. |
• | Capital markets and international banking services fees increased due to higher swap fees. |
• | Mortgage banking revenue increased due to higher mortgage servicing fees partly offset by lower mortgage origination fees. |
• | Trust and asset management fees increased due to the addition of new customers as well as the acquisition of MSA. |
• | Capital markets and international banking services fees increased due to higher derivatives fees. |
• | Commercial deposit and treasury management fees increased due to new customer activity. |
• | Lease financing revenues decreased due to lower fees from the sale of third-party equipment maintenance contracts. |
• | Card fees decreased due to the impact of becoming subject to the Durbin amendment of the Dodd-Frank Act starting on July 1, 2015. We estimate the quarterly impact of the Durbin amendment, when comparing the first quarter of 2016 with the first quarter of 2015, was $1.2 million. |
1Q16 | 4Q15 | 3Q15 | 2Q15 | 1Q15 | ||||||||||||||||
Core non-interest expense:(1) | ||||||||||||||||||||
Salaries and employee benefits expense | $ | 85,502 | $ | 84,356 | $ | 88,760 | $ | 86,138 | $ | 84,447 | ||||||||||
Occupancy and equipment expense | 13,260 | 12,935 | 12,456 | 12,081 | 12,763 | |||||||||||||||
Computer services and telecommunication expense | 8,750 | 8,548 | 8,558 | 8,407 | 8,634 | |||||||||||||||
Advertising and marketing expense | 2,855 | 2,549 | 2,578 | 2,497 | 2,446 | |||||||||||||||
Professional and legal expense | 2,492 | 2,715 | 1,496 | 1,902 | 2,480 | |||||||||||||||
Other intangible amortization expense | 1,626 | 1,546 | 1,542 | 1,509 | 1,518 | |||||||||||||||
Net (gain) loss recognized on other real estate owned (A) | (637 | ) | (256 | ) | 520 | 662 | 888 | |||||||||||||
Net loss (gain) recognized on other real estate owned related to FDIC transactions (A) | 154 | (549 | ) | 65 | (88 | ) | (273 | ) | ||||||||||||
Other real estate expense, net (A) | 137 | 76 | (8 | ) | 150 | 281 | ||||||||||||||
Other operating expenses | 18,366 | 18,932 | 18,782 | 18,238 | 18,276 | |||||||||||||||
Total core non-interest expense | 132,505 | 130,852 | 134,749 | 131,496 | 131,460 | |||||||||||||||
Non-core non-interest expense: (1) | ||||||||||||||||||||
Merger related and repositioning expenses (B) | 3,287 | (4,186 | ) | 389 | 1,234 | 8,069 | ||||||||||||||
Prepayment fees on interest bearing liabilities | — | — | — | — | 85 | |||||||||||||||
Increase (decrease) in market value of assets held in trust for deferred compensation (C) | 8 | 565 | (872 | ) | 7 | 306 | ||||||||||||||
Total non-core non-interest expense | 3,295 | (3,621 | ) | (483 | ) | 1,241 | 8,460 | |||||||||||||
Total non-interest expense | $ | 135,800 | $ | 127,231 | $ | 134,266 | $ | 132,737 | $ | 139,920 |
(1) | Letters denote the corresponding line items where these non-core non-interest expense items reside in the consolidated statements of operations as follows: A – Net loss (gain) recognized on other real estate owned and other expense, B – See merger related and repositioning expenses table below, and C – Salaries and employee benefits. |
• | Salaries and employee benefits expense was up due to an increase in leasing commission expense as a result of higher lease financing revenues. |
• | Occupancy and equipment expense increased due to higher rental operating expenses and real estate taxes offset partly by lower building repair and maintenance expenses. |
• | Salaries and employee benefits expense was up due to annual pay increases as well as an increase in temporary help in our mortgage and IT areas. |
• | Occupancy and equipment expense increased due to higher depreciation expense, rental operating expenses and real estate taxes offset partly by lower building repair and maintenance expenses. |
1Q16 | 4Q15 | 3Q15 | 2Q15 | 1Q15 | ||||||||||||||||
Merger related and repositioning expenses: | ||||||||||||||||||||
Salaries and employee benefits | $ | 81 | $ | (212 | ) | $ | 3 | $ | — | $ | 33 | |||||||||
Occupancy and equipment expense | — | — | 2 | 96 | 177 | |||||||||||||||
Computer services and telecommunication expense | 305 | (103 | ) | 9 | 130 | 270 | ||||||||||||||
Advertising and marketing expense | 23 | 2 | — | — | — | |||||||||||||||
Professional and legal expense | 97 | 1,454 | 305 | 511 | 190 | |||||||||||||||
Branch exit and facilities impairment charges | 44 | 616 | 70 | 438 | 7,391 | |||||||||||||||
Contingent consideration expense - Celtic acquisition (1) | 2,703 | — | — | — | — | |||||||||||||||
Other operating expenses | 34 | (5,943 | ) | — | 59 | 8 | ||||||||||||||
Total merger related and repositioning expenses | $ | 3,287 | $ | (4,186 | ) | $ | 389 | $ | 1,234 | $ | 8,069 |
(1) | Resides in other operating expenses in the consolidated statements of operations. |
Banking | Leasing | Mortgage Banking | Non-core Items | Consolidated | |||||||||||||||
Three months ended March 31, 2016 | |||||||||||||||||||
Net interest income | $ | 109,608 | $ | 2,423 | $ | 7,273 | $ | — | $ | 119,304 | |||||||||
Provision for credit losses | 7,001 | 437 | 125 | — | 7,563 | ||||||||||||||
Net interest income after provision for credit losses | 102,607 | 1,986 | 7,148 | — | 111,741 | ||||||||||||||
Non-interest income: | |||||||||||||||||||
Lease financing revenues, net | 679 | 18,367 | — | — | 19,046 | ||||||||||||||
Mortgage origination fees | — | — | 16,894 | — | 16,894 | ||||||||||||||
Mortgage servicing fees | — | — | 10,588 | — | 10,588 | ||||||||||||||
Other non-interest income | 34,388 | 828 | (3 | ) | (48 | ) | 35,165 | ||||||||||||
Total non-interest income | 35,067 | 19,195 | 27,479 | (48 | ) | 81,693 | |||||||||||||
Non-interest expense: | |||||||||||||||||||
Salaries and employee benefits | 53,421 | 9,072 | 23,017 | 81 | 85,591 | ||||||||||||||
Occupancy and equipment expense | 10,430 | 895 | 1,935 | — | 13,260 | ||||||||||||||
Computer services and telecommunication expense | 6,446 | 363 | 1,941 | 305 | 9,055 | ||||||||||||||
Professional and legal expense | 1,486 | 409 | 597 | 97 | 2,589 | ||||||||||||||
Other operating expenses | 15,570 | 1,447 | 5,484 | 2,804 | 25,305 | ||||||||||||||
Total non-interest expense | 87,353 | 12,186 | 32,974 | 3,287 | 135,800 | ||||||||||||||
Income before income taxes | 50,321 | 8,995 | 1,653 | (3,335 | ) | 57,634 | |||||||||||||
Income tax expense | 14,927 | 3,509 | 661 | (577 | ) | 18,520 | |||||||||||||
Net income | $ | 35,394 | $ | 5,486 | $ | 992 | $ | (2,758 | ) | $ | 39,114 | ||||||||
Banking | Leasing | Mortgage Banking | Non-core Items | Consolidated | |||||||||||||||
Three months ended December 31, 2015 | |||||||||||||||||||
Net interest income | $ | 111,691 | $ | 2,714 | $ | 7,364 | $ | — | $ | 121,769 | |||||||||
Provision for credit losses | 6,654 | — | 104 | — | 6,758 | ||||||||||||||
Net interest income after provision for credit losses | 105,037 | 2,714 | 7,260 | — | 115,011 | ||||||||||||||
Non-interest income: | |||||||||||||||||||
Lease financing revenues, net | 1,180 | 14,757 | — | — | 15,937 | ||||||||||||||
Mortgage origination fees | — | — | 17,596 | — | 17,596 | ||||||||||||||
Mortgage servicing fees | — | — | 8,946 | — | 8,946 | ||||||||||||||
Other non-interest income | 32,337 | 802 | 10 | (3 | ) | 33,146 | |||||||||||||
Total non-interest income | 33,517 | 15,559 | 26,552 | (3 | ) | 75,625 | |||||||||||||
Non-interest expense: | |||||||||||||||||||
Salaries and employee benefits | 54,655 | 7,474 | 22,792 | (212 | ) | 84,709 | |||||||||||||
Occupancy and equipment expense | 10,344 | 855 | 1,736 | — | 12,935 | ||||||||||||||
Computer services and telecommunication expense | 6,200 | 340 | 2,008 | (103 | ) | 8,445 | |||||||||||||
Professional and legal expense | 1,709 | 328 | 678 | 1,454 | 4,169 | ||||||||||||||
Other operating expenses | 15,757 | 1,501 | 5,040 | (5,325 | ) | 16,973 | |||||||||||||
Total non-interest expense | 88,665 | 10,498 | 32,254 | (4,186 | ) | 127,231 | |||||||||||||
Income before income taxes | 49,889 | 7,775 | 1,558 | 4,183 | 63,405 | ||||||||||||||
Income tax expense | 14,998 | 3,037 | 623 | 1,140 | 19,798 | ||||||||||||||
Net income | $ | 34,891 | $ | 4,738 | $ | 935 | $ | 3,043 | $ | 43,607 |
1Q16 | 4Q15 | 3Q15 | 2Q15 | 1Q15 | ||||||||||||||||
Origination volume: | $ | 1,328,804 | $ | 1,437,057 | $ | 1,880,960 | $ | 2,010,175 | $ | 1,688,541 | ||||||||||
Refinance | 49 | % | 42 | % | 34 | % | 43 | % | 61 | % | ||||||||||
Purchase | 51 | 58 | 66 | 57 | 39 | |||||||||||||||
Origination volume by channel: | ||||||||||||||||||||
Retail | 19 | % | 18 | % | 18 | % | 18 | % | 18 | % | ||||||||||
Third party | 81 | 82 | 82 | 82 | 82 | |||||||||||||||
Mortgage servicing book (unpaid principal balance of loans serviced for others) at period end (1) | $ | 16,911,325 | $ | 16,218,613 | $ | 15,582,911 | $ | 23,588,345 | $ | 22,978,750 | ||||||||||
Mortgage servicing rights, recorded at fair value, at period end | 145,800 | 168,162 | 148,097 | 261,034 | 219,254 | |||||||||||||||
Notional value of rate lock commitments, at period end | 823,000 | 622,906 | 800,162 | 992,025 | 1,069,145 |
3/31/2016 | 12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | |||||||||||||||||||||||||||||||
Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||||||||||||||||||
Commercial-related credits: | |||||||||||||||||||||||||||||||||||
Commercial loans | $ | 3,509,604 | 36 | % | $ | 3,616,286 | 37 | % | $ | 3,440,632 | 37 | % | $ | 3,354,889 | 37 | % | $ | 3,258,652 | 37 | % | |||||||||||||||
Commercial loans collateralized by assignment of lease payments (lease loans) | 1,774,104 | 18 | 1,779,072 | 18 | 1,693,540 | 18 | 1,690,866 | 18 | 1,628,031 | 18 | |||||||||||||||||||||||||
Commercial real estate | 2,831,814 | 28 | 2,695,676 | 27 | 2,580,009 | 27 | 2,539,991 | 28 | 2,525,640 | 28 | |||||||||||||||||||||||||
Construction real estate | 310,278 | 3 | 252,060 | 3 | 255,620 | 3 | 189,599 | 2 | 184,105 | 2 | |||||||||||||||||||||||||
Total commercial-related credits | 8,425,800 | 85 | 8,343,094 | 85 | 7,969,801 | 85 | 7,775,345 | 85 | 7,596,428 | 85 | |||||||||||||||||||||||||
Other loans: | |||||||||||||||||||||||||||||||||||
Residential real estate | 677,791 | 7 | 628,169 | 6 | 607,171 | 6 | 533,118 | 6 | 505,558 | 5 | |||||||||||||||||||||||||
Indirect vehicle | 432,915 | 4 | 384,095 | 4 | 345,731 | 4 | 303,777 | 3 | 273,105 | 3 | |||||||||||||||||||||||||
Home equity | 207,079 | 2 | 216,573 | 2 | 223,173 | 2 | 230,478 | 3 | 241,078 | 3 | |||||||||||||||||||||||||
Consumer loans | 77,318 | 1 | 80,661 | 1 | 87,612 | 1 | 86,463 | 1 | 77,645 | 1 | |||||||||||||||||||||||||
Total other loans | 1,395,103 | 14 | 1,309,498 | 13 | 1,263,687 | 13 | 1,153,836 | 13 | 1,097,386 | 12 | |||||||||||||||||||||||||
Total loans, excluding purchased credit-impaired loans | 9,820,903 | 99 | 9,652,592 | 98 | 9,233,488 | 98 | 8,929,181 | 98 | 8,693,814 | 97 | |||||||||||||||||||||||||
Purchased credit-impaired loans | 140,445 | 1 | 141,406 | 2 | 155,693 | 2 | 164,775 | 2 | 227,514 | 3 | |||||||||||||||||||||||||
Total loans | $ | 9,961,348 | 100 | % | $ | 9,793,998 | 100 | % | $ | 9,389,181 | 100 | % | $ | 9,093,956 | 100 | % | $ | 8,921,328 | 100 | % |
1Q16 | 4Q15 | 3Q15 | 2Q15 | 1Q15 | |||||||||||||||||||||||||||||||
Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||||||||||||||||||
Commercial-related credits: | |||||||||||||||||||||||||||||||||||
Commercial loans | $ | 3,531,441 | 36 | % | $ | 3,492,161 | 37 | % | $ | 3,372,279 | 37 | % | $ | 3,309,519 | 37 | % | $ | 3,190,755 | 36 | % | |||||||||||||||
Commercial loans collateralized by assignment of lease payments (lease loans) | 1,754,558 | 18 | 1,708,404 | 18 | 1,674,939 | 18 | 1,634,583 | 18 | 1,647,761 | 18 | |||||||||||||||||||||||||
Commercial real estate | 2,734,148 | 28 | 2,627,004 | 28 | 2,568,539 | 28 | 2,522,473 | 28 | 2,538,995 | 29 | |||||||||||||||||||||||||
Construction real estate | 276,797 | 3 | 274,188 | 2 | 210,506 | 2 | 191,935 | 2 | 191,257 | 2 | |||||||||||||||||||||||||
Total commercial-related credits | 8,296,944 | 85 | 8,101,757 | 85 | 7,826,263 | 85 | 7,658,510 | 85 | 7,568,768 | 85 | |||||||||||||||||||||||||
Other loans: | |||||||||||||||||||||||||||||||||||
Residential real estate | 640,231 | 7 | 612,275 | 6 | 566,115 | 6 | 512,766 | 6 | 493,366 | 5 | |||||||||||||||||||||||||
Indirect vehicle | 404,473 | 4 | 365,744 | 4 | 325,323 | 4 | 286,107 | 3 | 267,265 | 3 | |||||||||||||||||||||||||
Home equity | 210,678 | 2 | 219,440 | 2 | 226,365 | 2 | 233,867 | 3 | 246,537 | 3 | |||||||||||||||||||||||||
Consumer loans | 80,569 | 1 | 83,869 | 1 | 85,044 | 1 | 76,189 | 1 | 72,374 | 1 | |||||||||||||||||||||||||
Total other loans | 1,335,951 | 14 | 1,281,328 | 13 | 1,202,847 | 13 | 1,108,929 | 13 | 1,079,542 | 12 | |||||||||||||||||||||||||
Total loans, excluding purchased credit-impaired loans | 9,632,895 | 99 | 9,383,085 | 98 | 9,029,110 | 98 | 8,767,439 | 98 | 8,648,310 | 97 | |||||||||||||||||||||||||
Purchased credit-impaired loans | 139,451 | 1 | 154,562 | 2 | 156,309 | 2 | 202,374 | 2 | 240,376 | 3 | |||||||||||||||||||||||||
Total loans | $ | 9,772,346 | 100 | % | $ | 9,537,647 | 100 | % | $ | 9,185,419 | 100 | % | $ | 8,969,813 | 100 | % | $ | 8,888,686 | 100 | % |
3/31/2016 | 12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | ||||||||||||||||
Non-performing loans: | ||||||||||||||||||||
Non-accrual loans (1) | $ | 93,602 | $ | 98,065 | $ | 92,302 | $ | 91,943 | $ | 81,571 | ||||||||||
Loans 90 days or more past due, still accruing interest | 1,112 | 6,596 | 4,275 | 6,112 | 1,707 | |||||||||||||||
Total non-performing loans | 94,714 | 104,661 | 96,577 | 98,055 | 83,278 | |||||||||||||||
Other real estate owned | 28,309 | 31,553 | 29,587 | 28,517 | 21,839 | |||||||||||||||
Repossessed assets | 187 | 81 | 216 | 78 | 160 | |||||||||||||||
Total non-performing assets | $ | 123,210 | $ | 136,295 | $ | 126,380 | $ | 126,650 | $ | 105,277 | ||||||||||
Potential problem loans (2) | $ | 110,193 | $ | 139,941 | $ | 122,966 | $ | 116,443 | $ | 107,703 | ||||||||||
Purchased credit-impaired loans | $ | 140,445 | $ | 141,406 | $ | 155,693 | $ | 164,775 | $ | 227,514 | ||||||||||
Total non-performing, potential problem and purchased credit-impaired loans | $ | 345,352 | $ | 386,008 | $ | 375,236 | $ | 379,273 | $ | 418,495 | ||||||||||
Total allowance for loan and lease losses | $ | 134,493 | $ | 128,140 | $ | 124,626 | $ | 120,070 | $ | 113,412 | ||||||||||
Accruing restructured loans (3) | 27,269 | 26,991 | 20,120 | 16,875 | 16,874 | |||||||||||||||
Total non-performing loans to total loans | 0.95 | % | 1.07 | % | 1.03 | % | 1.08 | % | 0.93 | % | ||||||||||
Total non-performing assets to total assets | 0.79 | 0.87 | 0.85 | 0.84 | 0.73 | |||||||||||||||
Allowance for loan and lease losses to non-performing loans | 142.00 | 122.43 | 129.04 | 122.45 | 136.18 |
(1) | Includes $24.0 million, $23.6 million, $21.4 million, $24.5 million and $25.5 million of restructured loans on non-accrual status at March 31, 2016, December 31, 2015, September 30, 2015, June 30, 2015 and March 31, 2015, respectively. |
(2) | We define potential problem loans as loans rated substandard that do not meet the definition of a non-performing loan. Potential problem loans carry a higher probability of default and require additional attention by management. |
(3) | Accruing restructured loans consist primarily of residential real estate and home equity loans that have been modified and are performing in accordance with those modified terms as of the dates indicated. |
3/31/2016 | 12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | ||||||||||||||||
Commercial and lease | $ | 28,590 | $ | 37,076 | $ | 34,465 | $ | 31,053 | $ | 18,315 | ||||||||||
Commercial real estate | 27,786 | 29,073 | 25,437 | 32,358 | 29,645 | |||||||||||||||
Construction real estate | — | — | — | 337 | 337 | |||||||||||||||
Consumer related | 38,338 | 38,512 | 36,675 | 34,307 | 34,981 | |||||||||||||||
Total non-performing loans | $ | 94,714 | $ | 104,661 | $ | 96,577 | $ | 98,055 | $ | 83,278 |
3/31/2016 | 12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | ||||||||||||||||
Balance at the beginning of quarter | $ | 31,553 | $ | 29,587 | $ | 28,517 | $ | 21,839 | $ | 19,198 | ||||||||||
Transfers in at fair value less estimated costs to sell | 1,270 | 5,964 | 2,402 | 8,595 | 4,615 | |||||||||||||||
Fair value adjustments | 45 | (721 | ) | (565 | ) | (920 | ) | (922 | ) | |||||||||||
Net gains on sales of other real estate owned | 592 | 977 | 45 | 258 | 34 | |||||||||||||||
Cash received upon disposition | (5,151 | ) | (4,254 | ) | (812 | ) | (1,255 | ) | (1,086 | ) | ||||||||||
Balance at the end of quarter | $ | 28,309 | $ | 31,553 | $ | 29,587 | $ | 28,517 | $ | 21,839 |
1Q16 | 4Q15 | 3Q15 | 2Q15 | 1Q15 | ||||||||||||||||
Allowance for credit losses, balance at the beginning of period | $ | 131,508 | $ | 128,038 | $ | 124,130 | $ | 117,189 | $ | 114,057 | ||||||||||
Provision for credit losses - legacy | 6,409 | 6,758 | 1,225 | (600 | ) | (550 | ) | |||||||||||||
Provision for credit losses - acquired Taylor Capital loan portfolio renewals | 1,154 | — | 4,133 | 4,896 | 5,524 | |||||||||||||||
Charge-offs: | ||||||||||||||||||||
Commercial loans | 713 | 710 | 1,657 | 57 | 569 | |||||||||||||||
Commercial loans collateralized by assignment of lease payments (lease loans) | 574 | 685 | 1,980 | 100 | — | |||||||||||||||
Commercial real estate | 352 | 1,251 | 170 | 108 | 2,034 | |||||||||||||||
Construction real estate | — | 23 | 5 | 3 | 3 | |||||||||||||||
Residential real estate | 368 | 261 | 292 | 318 | 579 | |||||||||||||||
Home equity | 238 | 407 | 358 | 276 | 444 | |||||||||||||||
Indirect vehicle | 931 | 898 | 581 | 627 | 874 | |||||||||||||||
Consumer loans | 412 | 550 | 467 | 500 | 424 | |||||||||||||||
Total charge-offs | 3,588 | 4,785 | 5,510 | 1,989 | 4,927 | |||||||||||||||
Recoveries: | ||||||||||||||||||||
Commercial loans | 380 | 235 | 456 | 816 | 242 | |||||||||||||||
Commercial loans collateralized by assignment of lease payments (lease loans) | 50 | 12 | 11 | 340 | 749 | |||||||||||||||
Commercial real estate | 594 | 385 | 2,402 | 2,561 | 1,375 | |||||||||||||||
Construction real estate | 27 | 19 | 216 | 35 | 2 | |||||||||||||||
Residential real estate | 24 | 98 | 337 | 8 | 72 | |||||||||||||||
Home equity | 318 | 132 | 186 | 160 | 101 | |||||||||||||||
Indirect vehicle | 463 | 499 | 334 | 545 | 475 | |||||||||||||||
Consumer loans | 393 | 117 | 118 | 169 | 69 | |||||||||||||||
Total recoveries | 2,249 | 1,497 | 4,060 | 4,634 | 3,085 | |||||||||||||||
Total net charge-offs (recoveries) | 1,339 | 3,288 | 1,450 | (2,645 | ) | 1,842 | ||||||||||||||
Allowance for credit losses | 137,732 | 131,508 | 128,038 | 124,130 | 117,189 | |||||||||||||||
Allowance for unfunded credit commitments | (3,239 | ) | (3,368 | ) | (3,412 | ) | (4,060 | ) | (3,777 | ) | ||||||||||
Allowance for loan and lease losses | $ | 134,493 | $ | 128,140 | $ | 124,626 | $ | 120,070 | $ | 113,412 | ||||||||||
Total loans, excluding loans held for sale | $ | 9,961,348 | $ | 9,793,998 | $ | 9,389,181 | $ | 9,093,956 | $ | 8,921,328 | ||||||||||
Average loans, excluding loans held for sale | 9,772,346 | 9,537,647 | 9,185,419 | 8,969,813 | 8,888,686 | |||||||||||||||
Ratio of allowance for loan and lease losses to total loans, excluding loans held for sale | 1.35 | % | 1.31 | % | 1.33 | % | 1.32 | % | 1.27 | % | ||||||||||
Net loan charge-offs (recoveries) to average loans, excluding loans held for sale (annualized) | 0.06 | 0.14 | 0.06 | (0.12 | ) | 0.08 |
3/31/2016 | 12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | ||||||||||||||||
Commercial related loans: | ||||||||||||||||||||
General reserve | $ | 98,001 | $ | 94,164 | $ | 93,903 | $ | 89,642 | $ | 88,425 | ||||||||||
Specific reserve | 20,995 | 16,173 | 13,683 | 11,303 | 5,658 | |||||||||||||||
Consumer related reserve | 15,497 | 17,803 | 17,040 | 19,125 | 19,329 | |||||||||||||||
Total allowance for loan and lease losses | $ | 134,493 | $ | 128,140 | $ | 124,626 | $ | 120,070 | $ | 113,412 |
• | Pass rated loans (typically performing loans) are accounted for in accordance with ASC 310-20 "Nonrefundable Fees and Other Costs" as these loans do not have evidence of credit deterioration since origination. |
• | Non-impaired loans (typically performing substandard loans) are accounted for in accordance with ASC 310-30 if they display at least some level of credit deterioration since origination. |
• | Impaired loans (typically substandard loans on non-accrual status) are accounted for in accordance with ASC 310-30 as they display significant credit deterioration since origination. |
Non-Accretable Discount - PCI Loans | Accretable Discount - PCI Loans | Accretable Discount - Non-PCI Loans | Total | |||||||||||||
Balance at beginning of period | $ | 14,661 | $ | 12,298 | $ | 34,768 | $ | 61,727 | ||||||||
Charge-offs | (123 | ) | — | — | (123 | ) | ||||||||||
Accretion | — | (2,403 | ) | (4,950 | ) | (7,353 | ) | |||||||||
Transfer | (3,584 | ) | 3,584 | — | — | |||||||||||
Balance at end of period | $ | 10,954 | $ | 13,479 | $ | 29,818 | $ | 54,251 |
Non-Accretable Discount - PCI Loans | Accretable Discount - PCI Loans | Accretable Discount - Non-PCI Loans | Total | |||||||||||||
Balance at beginning of period | $ | 19,747 | $ | 9,368 | $ | 40,961 | $ | 70,076 | ||||||||
Recoveries | 1,354 | — | — | 1,354 | ||||||||||||
Accretion | — | (3,510 | ) | (6,193 | ) | (9,703 | ) | |||||||||
Transfer | (6,440 | ) | 6,440 | — | — | |||||||||||
Balance at end of period | $ | 14,661 | $ | 12,298 | $ | 34,768 | $ | 61,727 |
3/31/2016 | 12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | ||||||||||||||||
Securities available for sale: | ||||||||||||||||||||
Fair value | ||||||||||||||||||||
Government sponsored agencies and enterprises | $ | 64,762 | $ | 64,611 | $ | 65,461 | $ | 65,485 | $ | 66,070 | ||||||||||
States and political subdivisions | 398,024 | 396,367 | 399,274 | 395,912 | 403,628 | |||||||||||||||
Mortgage-backed securities | 834,559 | 893,656 | 847,426 | 902,017 | 856,933 | |||||||||||||||
Corporate bonds | 224,530 | 219,628 | 228,251 | 246,468 | 252,042 | |||||||||||||||
Equity securities | 10,969 | 10,761 | 10,826 | 10,669 | 10,751 | |||||||||||||||
Total fair value | $ | 1,532,844 | $ | 1,585,023 | $ | 1,551,238 | $ | 1,620,551 | $ | 1,589,424 | ||||||||||
Amortized cost | ||||||||||||||||||||
Government sponsored agencies and enterprises | $ | 63,600 | $ | 63,805 | $ | 64,008 | $ | 64,211 | $ | 64,411 | ||||||||||
States and political subdivisions | 371,006 | 373,285 | 379,015 | 380,221 | 381,704 | |||||||||||||||
Mortgage-backed securities | 820,825 | 888,325 | 834,791 | 890,334 | 841,727 | |||||||||||||||
Corporate bonds | 225,657 | 222,784 | 228,711 | 245,506 | 250,543 | |||||||||||||||
Equity securities | 10,814 | 10,757 | 10,701 | 10,644 | 10,587 | |||||||||||||||
Total amortized cost | $ | 1,491,902 | $ | 1,558,956 | $ | 1,517,226 | $ | 1,590,916 | $ | 1,548,972 | ||||||||||
Unrealized gain, net | ||||||||||||||||||||
Government sponsored agencies and enterprises | $ | 1,162 | $ | 806 | $ | 1,453 | $ | 1,274 | $ | 1,659 | ||||||||||
States and political subdivisions | 27,018 | 23,082 | 20,259 | 15,691 | 21,924 | |||||||||||||||
Mortgage-backed securities | 13,734 | 5,331 | 12,635 | 11,683 | 15,206 | |||||||||||||||
Corporate bonds | (1,127 | ) | (3,156 | ) | (460 | ) | 962 | 1,499 | ||||||||||||
Equity securities | 155 | 4 | 125 | 25 | 164 | |||||||||||||||
Total unrealized gain, net | $ | 40,942 | $ | 26,067 | $ | 34,012 | $ | 29,635 | $ | 40,452 | ||||||||||
Securities held to maturity, at amortized cost: | ||||||||||||||||||||
States and political subdivisions | $ | 986,340 | $ | 1,016,519 | $ | 1,002,963 | $ | 974,032 | $ | 764,931 | ||||||||||
Mortgage-backed securities | 205,570 | 214,291 | 221,889 | 229,595 | 235,928 | |||||||||||||||
Total amortized cost | $ | 1,191,910 | $ | 1,230,810 | $ | 1,224,852 | $ | 1,203,627 | $ | 1,000,859 |
3/31/2016 | 12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | |||||||||||||||||||||||||||||||
Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||||||||||||||||||
Low cost deposits: | |||||||||||||||||||||||||||||||||||
Noninterest bearing deposits | $ | 4,667,410 | 40 | % | $ | 4,627,184 | 40 | % | $ | 4,434,067 | 39 | % | $ | 4,378,005 | 40 | % | $ | 4,290,499 | 39 | % | |||||||||||||||
Money market, NOW and interest bearing deposits | 4,048,054 | 35 | 4,144,633 | 36 | 4,129,414 | 37 | 3,842,264 | 35 | 4,002,818 | 36 | |||||||||||||||||||||||||
Savings | 991,300 | 9 | 974,555 | 8 | 953,746 | 8 | 970,875 | 9 | 969,560 | 9 | |||||||||||||||||||||||||
Total low cost deposits | 9,706,764 | 84 | 9,746,372 | 84 | 9,517,227 | 84 | 9,191,144 | 84 | 9,262,877 | 84 | |||||||||||||||||||||||||
Certificates of deposit: | |||||||||||||||||||||||||||||||||||
Certificates of deposit | 1,255,457 | 11 | 1,244,292 | 11 | 1,279,842 | 12 | 1,261,843 | 12 | 1,354,633 | 12 | |||||||||||||||||||||||||
Brokered certificates of deposit | 571,605 | 5 | 514,551 | 5 | 457,509 | 4 | 408,827 | 4 | 401,991 | 4 | |||||||||||||||||||||||||
Total certificates of deposit | 1,827,062 | 16 | 1,758,843 | 16 | 1,737,351 | 16 | 1,670,670 | 16 | 1,756,624 | 16 | |||||||||||||||||||||||||
Total deposits | $ | 11,533,826 | 100 | % | $ | 11,505,215 | 100 | % | $ | 11,254,578 | 100 | % | $ | 10,861,814 | 100 | % | $ | 11,019,501 | 100 | % |
1Q16 | 4Q15 | 3Q15 | 2Q15 | 1Q15 | |||||||||||||||||||||||||||||||
Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||||||||||||||||||
Low cost deposits: | |||||||||||||||||||||||||||||||||||
Noninterest bearing deposits | $ | 4,606,008 | 40 | % | $ | 4,617,076 | 40 | % | $ | 4,428,065 | 39 | % | $ | 4,273,931 | 39 | % | $ | 4,199,948 | 38 | % | |||||||||||||||
Money market, NOW and interest bearing deposits | 4,109,150 | 36 | 4,214,099 | 37 | 4,119,625 | 36 | 3,940,201 | 36 | 3,937,707 | 36 | |||||||||||||||||||||||||
Savings | 984,019 | 9 | 959,049 | 8 | 965,060 | 9 | 972,327 | 9 | 952,345 | 9 | |||||||||||||||||||||||||
Total low cost deposits | 9,699,177 | 85 | 9,790,224 | 85 | 9,512,750 | 84 | 9,186,459 | 84 | 9,090,000 | 83 | |||||||||||||||||||||||||
Certificates of deposit: | |||||||||||||||||||||||||||||||||||
Certificates of deposit | 1,237,971 | 11 | 1,245,947 | 11 | 1,304,516 | 12 | 1,302,031 | 12 | 1,420,320 | 13 | |||||||||||||||||||||||||
Brokered certificates of deposit | 534,910 | 4 | 492,839 | 4 | 427,649 | 4 | 412,517 | 4 | 476,245 | 4 | |||||||||||||||||||||||||
Total certificates of deposit | 1,772,881 | 15 | 1,738,786 | 15 | 1,732,165 | 16 | 1,714,548 | 16 | 1,896,565 | 17 | |||||||||||||||||||||||||
Total deposits | $ | 11,472,058 | 100 | % | $ | 11,529,010 | 100 | % | $ | 11,244,915 | 100 | % | $ | 10,901,007 | 100 | % | $ | 10,986,565 | 100 | % |
3/31/2016 | 12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and due from banks | $ | 271,732 | $ | 307,869 | $ | 234,220 | $ | 290,266 | $ | 248,840 | ||||||||||
Interest earning deposits with banks | 113,785 | 73,572 | 66,025 | 144,154 | 52,212 | |||||||||||||||
Total cash and cash equivalents | 385,517 | 381,441 | 300,245 | 434,420 | 301,052 | |||||||||||||||
Federal funds sold | — | — | — | 5 | — | |||||||||||||||
Investment securities: | ||||||||||||||||||||
Securities available for sale, at fair value | 1,532,844 | 1,585,023 | 1,551,238 | 1,620,551 | 1,589,424 | |||||||||||||||
Securities held to maturity, at amortized cost | 1,191,910 | 1,230,810 | 1,224,852 | 1,203,627 | 1,000,859 | |||||||||||||||
Non-marketable securities - FHLB and FRB Stock | 121,750 | 114,233 | 91,400 | 111,400 | 87,677 | |||||||||||||||
Total investment securities | 2,846,504 | 2,930,066 | 2,867,490 | 2,935,578 | 2,677,960 | |||||||||||||||
Loans held for sale | 632,196 | 744,727 | 676,020 | 801,343 | 686,838 | |||||||||||||||
Loans: | ||||||||||||||||||||
Total loans, excluding purchased credit-impaired loans | 9,820,903 | 9,652,592 | 9,233,488 | 8,929,181 | 8,693,814 | |||||||||||||||
Purchased credit-impaired loans | 140,445 | 141,406 | 155,693 | 164,775 | 227,514 | |||||||||||||||
Total loans | 9,961,348 | 9,793,998 | 9,389,181 | 9,093,956 | 8,921,328 | |||||||||||||||
Less: Allowance for loan and lease losses | 134,493 | 128,140 | 124,626 | 120,070 | 113,412 | |||||||||||||||
Net loans | 9,826,855 | 9,665,858 | 9,264,555 | 8,973,886 | 8,807,916 | |||||||||||||||
Lease investments, net | 216,046 | 211,687 | 184,223 | 167,966 | 159,191 | |||||||||||||||
Premises and equipment, net | 238,578 | 236,013 | 234,115 | 234,651 | 234,077 | |||||||||||||||
Cash surrender value of life insurance | 137,807 | 136,953 | 136,089 | 135,237 | 134,401 | |||||||||||||||
Goodwill | 725,068 | 725,070 | 711,521 | 711,521 | 711,521 | |||||||||||||||
Other intangibles | 43,186 | 44,812 | 37,520 | 34,979 | 36,488 | |||||||||||||||
Mortgage servicing rights, at fair value | 145,800 | 168,162 | 148,097 | 261,034 | 219,254 | |||||||||||||||
Other real estate owned, net | 28,309 | 31,553 | 29,587 | 28,517 | 21,839 | |||||||||||||||
Other real estate owned related to FDIC transactions | 10,397 | 10,717 | 13,825 | 13,867 | 17,890 | |||||||||||||||
Other assets | 339,390 | 297,948 | 346,814 | 285,190 | 319,883 | |||||||||||||||
Total assets | $ | 15,575,653 | $ | 15,585,007 | $ | 14,950,101 | $ | 15,018,194 | $ | 14,328,310 | ||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||
Liabilities | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Noninterest bearing | $ | 4,667,410 | $ | 4,627,184 | $ | 4,434,067 | $ | 4,378,005 | $ | 4,290,499 | ||||||||||
Interest bearing | 6,866,416 | 6,878,031 | 6,820,511 | 6,483,809 | 6,729,002 | |||||||||||||||
Total deposits | 11,533,826 | 11,505,215 | 11,254,578 | 10,861,814 | 11,019,501 | |||||||||||||||
Short-term borrowings | 884,101 | 1,005,737 | 940,529 | 1,382,635 | 615,231 | |||||||||||||||
Long-term borrowings | 439,615 | 400,274 | 95,175 | 89,639 | 85,477 | |||||||||||||||
Junior subordinated notes issued to capital trusts | 185,820 | 186,164 | 186,068 | 185,971 | 185,874 | |||||||||||||||
Accrued expenses and other liabilities | 409,406 | 400,333 | 410,523 | 420,396 | 363,934 | |||||||||||||||
Total liabilities | 13,452,768 | 13,497,723 | 12,886,873 | 12,940,455 | 12,270,017 | |||||||||||||||
Stockholders' Equity | ||||||||||||||||||||
Preferred stock | 115,280 | 115,280 | 115,280 | 115,280 | 115,280 | |||||||||||||||
Common stock | 756 | 756 | 756 | 754 | 754 | |||||||||||||||
Additional paid-in capital | 1,284,438 | 1,280,870 | 1,277,348 | 1,273,333 | 1,268,851 | |||||||||||||||
Retained earnings | 756,272 | 731,812 | 702,789 | 677,246 | 651,178 | |||||||||||||||
Accumulated other comprehensive income | 24,687 | 15,777 | 20,968 | 18,778 | 26,101 | |||||||||||||||
Treasury stock | (59,863 | ) | (58,504 | ) | (55,258 | ) | (9,035 | ) | (5,277 | ) | ||||||||||
Controlling interest stockholders' equity | 2,121,570 | 2,085,991 | 2,061,883 | 2,076,356 | 2,056,887 | |||||||||||||||
Noncontrolling interest | 1,315 | 1,293 | 1,345 | 1,383 | 1,406 | |||||||||||||||
Total stockholders' equity | 2,122,885 | 2,087,284 | 2,063,228 | 2,077,739 | 2,058,293 | |||||||||||||||
Total liabilities and stockholders' equity | $ | 15,575,653 | $ | 15,585,007 | $ | 14,950,101 | $ | 15,018,194 | $ | 14,328,310 |
(Dollars in thousands, except per share data) | 1Q16 | 4Q15 | 3Q15 | 2Q15 | 1Q15 | |||||||||||||||
Interest income: | ||||||||||||||||||||
Loans: | ||||||||||||||||||||
Taxable | $ | 104,923 | $ | 106,137 | $ | 100,573 | $ | 98,768 | $ | 98,846 | ||||||||||
Nontaxable | 2,586 | 2,602 | 2,283 | 2,259 | 2,174 | |||||||||||||||
Investment securities: | ||||||||||||||||||||
Taxable | 9,566 | 9,708 | 9,655 | 10,002 | 9,934 | |||||||||||||||
Nontaxable | 10,776 | 10,969 | 10,752 | 10,140 | 9,113 | |||||||||||||||
Federal funds sold | — | 1 | — | — | — | |||||||||||||||
Other interest earning accounts | 141 | 110 | 89 | 57 | 62 | |||||||||||||||
Total interest income | 127,992 | 129,527 | 123,352 | 121,226 | 120,129 | |||||||||||||||
Interest expense: | ||||||||||||||||||||
Deposits | 5,622 | 5,357 | 5,102 | 4,554 | 4,645 | |||||||||||||||
Short-term borrowings | 721 | 385 | 395 | 355 | 277 | |||||||||||||||
Long-term borrowings and junior subordinated notes | 2,345 | 2,016 | 1,886 | 1,844 | 1,812 | |||||||||||||||
Total interest expense | 8,688 | 7,758 | 7,383 | 6,753 | 6,734 | |||||||||||||||
Net interest income | 119,304 | 121,769 | 115,969 | 114,473 | 113,395 | |||||||||||||||
Provision for credit losses | 7,563 | 6,758 | 5,358 | 4,296 | 4,974 | |||||||||||||||
Net interest income after provision for credit losses | 111,741 | 115,011 | 110,611 | 110,177 | 108,421 | |||||||||||||||
Non-interest income: | ||||||||||||||||||||
Lease financing revenue, net | 19,046 | 15,937 | 20,000 | 15,564 | 25,080 | |||||||||||||||
Mortgage banking revenue | 27,482 | 26,542 | 30,692 | 35,648 | 24,544 | |||||||||||||||
Commercial deposit and treasury management fees | 11,878 | 11,711 | 11,472 | 11,062 | 11,038 | |||||||||||||||
Trust and asset management fees | 7,950 | 6,077 | 6,002 | 5,752 | 5,714 | |||||||||||||||
Card fees | 3,525 | 3,651 | 3,335 | 4,409 | 3,927 | |||||||||||||||
Capital markets and international banking service fees | 3,227 | 2,355 | 2,357 | 1,508 | 1,928 | |||||||||||||||
Consumer and other deposit service fees | 3,025 | 3,440 | 3,499 | 3,260 | 3,083 | |||||||||||||||
Brokerage fees | 1,158 | 1,252 | 1,281 | 1,543 | 1,678 | |||||||||||||||
Loan service fees | 1,752 | 1,890 | 1,531 | 1,353 | 1,485 | |||||||||||||||
Increase in cash surrender value of life insurance | 854 | 864 | 852 | 836 | 839 | |||||||||||||||
Net (loss) gain on investment securities | — | (3 | ) | 371 | (84 | ) | (460 | ) | ||||||||||||
Net (loss) gain on sale of assets | (48 | ) | — | 1 | (7 | ) | 4 | |||||||||||||
Other operating income | 1,844 | 1,909 | 858 | 2,105 | 2,408 | |||||||||||||||
Total non-interest income | 81,693 | 75,625 | 82,251 | 82,949 | 81,268 | |||||||||||||||
Non-interest expense: | ||||||||||||||||||||
Salaries and employee benefits expense | 85,591 | 84,709 | 87,891 | 86,145 | 84,786 | |||||||||||||||
Occupancy and equipment expense | 13,260 | 12,935 | 12,458 | 12,177 | 12,940 | |||||||||||||||
Computer services and telecommunication expense | 9,055 | 8,445 | 8,567 | 8,537 | 8,904 | |||||||||||||||
Advertising and marketing expense | 2,878 | 2,551 | 2,578 | 2,497 | 2,446 | |||||||||||||||
Professional and legal expense | 2,589 | 4,169 | 1,801 | 2,413 | 2,670 | |||||||||||||||
Other intangible amortization expense | 1,626 | 1,546 | 1,542 | 1,509 | 1,518 | |||||||||||||||
Branch exit and facilities impairment charges | 44 | 616 | 70 | 438 | 7,391 | |||||||||||||||
Net (gain) loss recognized on other real estate owned and other expense | (346 | ) | (729 | ) | 577 | 724 | 896 | |||||||||||||
Prepayment fees on interest bearing liabilities | — | — | — | — | 85 | |||||||||||||||
Other operating expenses | 21,103 | 12,989 | 18,782 | 18,297 | 18,284 | |||||||||||||||
Total non-interest expense | 135,800 | 127,231 | 134,266 | 132,737 | 139,920 | |||||||||||||||
Income before income taxes | 57,634 | 63,405 | 58,596 | 60,389 | 49,769 | |||||||||||||||
Income tax expense | 18,520 | 19,798 | 18,318 | 19,437 | 15,658 | |||||||||||||||
Net income | 39,114 | 43,607 | 40,278 | 40,952 | 34,111 | |||||||||||||||
Dividends on preferred shares | 2,000 | 2,000 | 2,000 | 2,000 | 2,000 | |||||||||||||||
Net income available to common stockholders | $ | 37,114 | $ | 41,607 | $ | 38,278 | $ | 38,952 | $ | 32,111 |
1Q16 | 4Q15 | 3Q15 | 2Q15 | 1Q15 | ||||||||||||||||
Common share data: | ||||||||||||||||||||
Basic earnings per common share | $ | 0.51 | $ | 0.57 | $ | 0.52 | $ | 0.52 | $ | 0.43 | ||||||||||
Diluted earnings per common share | 0.50 | 0.56 | 0.51 | 0.52 | 0.43 | |||||||||||||||
Weighted average common shares outstanding for basic earnings per common share | 73,330,731 | 73,296,602 | 74,297,281 | 74,596,925 | 74,567,104 | |||||||||||||||
Weighted average common shares outstanding for diluted earnings per common share | 73,966,935 | 73,953,165 | 75,029,827 | 75,296,029 | 75,164,716 | |||||||||||||||
Common shares outstanding (at end of period) | 73,639,487 | 73,678,329 | 73,776,196 | 75,073,292 | 75,122,076 |
Selected Financial Data: | ||||||||||||||||||||
1Q16 | 4Q15 | 3Q15 | 2Q15 | 1Q15 | ||||||||||||||||
Performance Ratios: | ||||||||||||||||||||
Annualized return on average assets | 1.02 | % | 1.13 | % | 1.06 | % | 1.12 | % | 0.96 | % | ||||||||||
Annualized operating return on average assets (1) | 1.09 | 1.06 | 1.06 | 1.14 | 1.11 | |||||||||||||||
Annualized return on average common equity | 7.52 | 8.48 | 7.75 | 8.02 | 6.78 | |||||||||||||||
Annualized operating return on average common equity (1) | 8.08 | 7.86 | 7.75 | 8.19 | 7.87 | |||||||||||||||
Annualized cash return on average tangible common equity (2) | 12.47 | 13.97 | 12.74 | 13.21 | 11.31 | |||||||||||||||
Annualized cash operating return on average tangible common equity (3) | 13.37 | 12.97 | 12.74 | 13.47 | 13.09 | |||||||||||||||
Net interest rate spread | 3.63 | 3.72 | 3.60 | 3.72 | 3.80 | |||||||||||||||
Cost of funds (4) | 0.27 | 0.24 | 0.23 | 0.22 | 0.23 | |||||||||||||||
Efficiency ratio (5) | 63.49 | 63.95 | 65.35 | 64.26 | 65.29 | |||||||||||||||
Annualized net non-interest expense to average assets (6) | 1.31 | 1.44 | 1.36 | 1.32 | 1.40 | |||||||||||||||
Core non-interest income to revenues (7) | 39.38 | 36.91 | 40.35 | 40.80 | 40.66 | |||||||||||||||
Net interest margin | 3.57 | 3.64 | 3.52 | 3.63 | 3.73 | |||||||||||||||
Tax equivalent effect | 0.22 | 0.22 | 0.21 | 0.21 | 0.20 | |||||||||||||||
Net interest margin - fully tax equivalent basis (8) | 3.79 | 3.86 | 3.73 | 3.84 | 3.93 | |||||||||||||||
Loans to deposits | 86.37 | 85.13 | 83.43 | 83.72 | 80.96 | |||||||||||||||
Asset Quality Ratios: | ||||||||||||||||||||
Non-performing loans (9) to total loans | 0.95 | % | 1.07 | % | 1.03 | % | 1.08 | % | 0.93 | % | ||||||||||
Non-performing assets (9) to total assets | 0.79 | 0.87 | 0.85 | 0.84 | 0.73 | |||||||||||||||
Allowance for loan and lease losses to non-performing loans (9) | 142.00 | 122.43 | 129.04 | 122.45 | 136.18 | |||||||||||||||
Allowance for loan and lease losses to total loans | 1.35 | 1.31 | 1.33 | 1.32 | 1.27 | |||||||||||||||
Net loan (recoveries) charge-offs to average loans (annualized) | 0.06 | 0.14 | 0.06 | (0.12 | ) | 0.08 | ||||||||||||||
Capital Ratios: | ||||||||||||||||||||
Tangible equity to tangible assets (10) | 9.24 | % | 8.99 | % | 9.34 | % | 9.41 | % | 9.73 | % | ||||||||||
Tangible common equity to tangible assets (11) | 8.46 | 8.21 | 8.53 | 8.60 | 8.89 | |||||||||||||||
Tangible common equity to risk weighted assets (12) | 9.56 | 9.34 | 9.69 | 10.02 | 10.09 | |||||||||||||||
Total capital (to risk-weighted assets) (13) | 12.66 | 12.54 | 12.94 | 13.07 | 13.22 | |||||||||||||||
Tier 1 capital (to risk-weighted assets) (13) | 11.62 | 11.54 | 11.92 | 12.06 | 12.24 | |||||||||||||||
Common equity tier 1 capital (to risk-weighted assets) (13) | 9.34 | 9.27 | 9.56 | 9.66 | 9.79 | |||||||||||||||
Tier 1 capital (to average assets) (13) | 10.38 | 10.40 | 10.43 | 10.69 | 10.80 | |||||||||||||||
Per Share Data: | ||||||||||||||||||||
Book value per common share (14) | $ | 27.26 | $ | 26.77 | $ | 26.40 | $ | 26.14 | $ | 25.86 | ||||||||||
Less: goodwill and other intangible assets, net of benefit, per common share | 10.22 | 10.24 | 9.97 | 9.78 | 9.78 | |||||||||||||||
Tangible book value per common share (15) | $ | 17.04 | $ | 16.53 | $ | 16.43 | $ | 16.36 | $ | 16.08 | ||||||||||
Cash dividends per common share | $ | 0.17 | $ | 0.17 | $ | 0.17 | $ | 0.17 | $ | 0.14 |
(1) | Annualized operating return on average assets is computed by dividing annualized operating earnings by average total assets. Annualized operating return on average common equity is computed by dividing annualized operating earnings by average common equity. Operating earnings is defined as net income as reported less non-core items, net of tax. |
(2) | Annualized cash return on average tangible equity is computed by dividing net cash flow available to common stockholders (net income available to common stockholders, plus other intangibles amortization expense, net of tax benefit) by average tangible common equity (average common stockholders' equity less average goodwill and average other intangibles, net of tax benefit). |
(3) | Annualized cash operating return on average tangible common equity is computed by dividing annualized cash operating earnings (operating earnings plus other intangibles amortization expense, net of tax benefit, less dividends on preferred shares) by average tangible common equity. Operating earnings is defined as net income as reported less non-core items, net of tax. |
(4) | Equals total interest expense divided by the sum of average interest bearing liabilities and noninterest bearing deposits. |
(5) | Equals total non-interest expense excluding non-core items divided by the sum of net interest income on a fully tax equivalent basis, total non-interest income less non-core items, and tax equivalent adjustment on the increase in cash surrender value of life insurance. |
(6) | Equals total non-interest expense excluding non-core items less total non-interest income excluding non-core items, and including tax equivalent adjustment on the increase in cash surrender value of life insurance divided by average assets. |
(7) | Equals total non-interest income excluding non-core items and tax equivalent adjustment on the increase in cash surrender value of life insurance divided by the sum of net interest income on a fully tax equivalent basis, total non-interest income less non-core items, and tax equivalent adjustment on the increase in cash surrender value of life insurance. |
(8) | Represents net interest income on a fully tax equivalent basis assuming a 35% tax rate, as a percentage of average interest earning assets. |
(9) | Non-performing loans excludes purchased credit-impaired loans and loans held for sale. Non-performing assets excludes purchased credit-impaired loans, loans held for sale, and other real estate owned related to FDIC transactions. |
(10) | Equals total ending stockholders’ equity less goodwill and other intangibles, net of tax benefit, divided by total assets less goodwill and other intangibles, net of tax benefit. |
(11) | Equals total ending common stockholders’ equity less goodwill and other intangibles, net of tax benefit, divided by total assets less goodwill and other intangibles, net of tax benefit. |
(12) | Equals total ending common stockholders’ equity less goodwill and other intangibles, net of tax benefit, divided by risk-weighted assets. Current quarter risk-weighted assets are estimated. |
(13) | Current quarter ratios are estimated. |
(14) | Equals total ending common stockholders’ equity divided by common shares outstanding. |
(15) | Equals total ending common stockholders’ equity less goodwill and other intangibles, net of tax benefit, divided by common shares outstanding. |
3/31/2016 | 12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | ||||||||||||||||
Stockholders' equity - as reported | $ | 2,122,885 | $ | 2,087,284 | $ | 2,063,228 | $ | 2,077,739 | $ | 2,058,293 | ||||||||||
Less: goodwill | 725,068 | 725,070 | 711,521 | 711,521 | 711,521 | |||||||||||||||
Less: other intangible assets, net of tax benefit | 28,071 | 29,128 | 24,388 | 22,736 | 23,717 | |||||||||||||||
Tangible equity | $ | 1,369,746 | $ | 1,333,086 | $ | 1,327,319 | $ | 1,343,482 | $ | 1,323,055 |
3/31/2016 | 12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | ||||||||||||||||
Total assets - as reported | $ | 15,575,653 | $ | 15,585,007 | $ | 14,950,101 | $ | 15,018,194 | $ | 14,328,310 | ||||||||||
Less: goodwill | 725,068 | 725,070 | 711,521 | 711,521 | 711,521 | |||||||||||||||
Less: other intangible assets, net of tax benefit | 28,071 | 29,128 | 24,388 | 22,736 | 23,717 | |||||||||||||||
Tangible assets | $ | 14,822,514 | $ | 14,830,809 | $ | 14,214,192 | $ | 14,283,937 | $ | 13,593,072 |
3/31/2016 | 12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | ||||||||||||||||
Common stockholders' equity - as reported | $ | 2,007,605 | $ | 1,972,004 | $ | 1,947,948 | $ | 1,962,459 | $ | 1,943,013 | ||||||||||
Less: goodwill | 725,068 | 725,070 | 711,521 | 711,521 | 711,521 | |||||||||||||||
Less: other intangible assets, net of tax benefit | 28,071 | 29,128 | 24,388 | 22,736 | 23,717 | |||||||||||||||
Tangible common equity | $ | 1,254,466 | $ | 1,217,806 | $ | 1,212,039 | $ | 1,228,202 | $ | 1,207,775 |
1Q16 | 4Q15 | 3Q15 | 2Q15 | 1Q15 | ||||||||||||||||
Average common stockholders' equity - as reported | $ | 1,984,379 | $ | 1,945,772 | $ | 1,958,947 | $ | 1,947,231 | $ | 1,922,151 | ||||||||||
Less: average goodwill | 725,070 | 711,669 | 711,521 | 711,521 | 711,521 | |||||||||||||||
Less: average other intangible assets, net of tax benefit | 28,511 | 23,826 | 23,900 | 23,092 | 24,157 | |||||||||||||||
Average tangible common equity | $ | 1,230,798 | $ | 1,210,277 | $ | 1,223,526 | $ | 1,212,618 | $ | 1,186,473 |
1Q16 | 4Q15 | 3Q15 | 2Q15 | 1Q15 | ||||||||||||||||
Net income available to common stockholders - as reported | $ | 37,114 | $ | 41,607 | $ | 38,278 | $ | 38,952 | $ | 32,111 | ||||||||||
Add: other intangible amortization expense, net of tax benefit | 1,057 | 1,005 | 1,002 | 981 | 987 | |||||||||||||||
Net cash flow available to common stockholders | $ | 38,171 | $ | 42,612 | $ | 39,280 | $ | 39,933 | $ | 33,098 |
1Q16 | 4Q15 | 3Q15 | 2Q15 | 1Q15 | ||||||||||||||||
Net income - as reported | $ | 39,114 | $ | 43,607 | $ | 40,278 | $ | 40,952 | $ | 34,111 | ||||||||||
Less non-core items: | ||||||||||||||||||||
Net (loss) gain on investment securities | — | (3 | ) | 371 | (84 | ) | (460 | ) | ||||||||||||
Net (loss) gain on sale of other assets | (48 | ) | — | 1 | (7 | ) | 4 | |||||||||||||
Merger related and repositioning expenses | (3,287 | ) | 4,186 | (389 | ) | (1,234 | ) | (8,069 | ) | |||||||||||
Prepayment fees on interest bearing liabilities | — | — | — | — | (85 | ) | ||||||||||||||
Total non-core items | (3,335 | ) | 4,183 | (17 | ) | (1,325 | ) | (8,610 | ) | |||||||||||
Income tax expense on non-core items | (577 | ) | 1,140 | (6 | ) | (526 | ) | (3,417 | ) | |||||||||||
Non-core items, net of tax | (2,758 | ) | 3,043 | (11 | ) | (799 | ) | (5,193 | ) | |||||||||||
Operating earnings | 41,872 | 40,564 | 40,289 | 41,751 | 39,304 | |||||||||||||||
Dividends on preferred shares | 2,000 | 2,000 | 2,000 | 2,000 | 2,000 | |||||||||||||||
Operating earnings available to common stockholders | $ | 39,872 | $ | 38,564 | $ | 38,289 | $ | 39,751 | $ | 37,304 | ||||||||||
Diluted operating earnings per common share | $ | 0.54 | $ | 0.52 | $ | 0.51 | $ | 0.53 | $ | 0.50 | ||||||||||
Weighted average common shares outstanding for diluted operating earnings per common share | 73,966,935 | 73,953,165 | 75,029,827 | 75,296,029 | 75,164,716 |
1Q16 | 4Q15 | 3Q15 | 2Q15 | 1Q15 | ||||||||||||||||
Non-interest expense | $ | 135,800 | $ | 127,231 | $ | 134,266 | $ | 132,737 | $ | 139,920 | ||||||||||
Less merger related and repositioning expenses | 3,287 | (4,186 | ) | 389 | 1,234 | 8,069 | ||||||||||||||
Less prepayment fees on interest bearing liabilities | — | — | — | — | 85 | |||||||||||||||
Less increase (decrease) in market value of assets held in trust for deferred compensation | 8 | 565 | (872 | ) | 7 | 306 | ||||||||||||||
Non-interest expense - as adjusted | $ | 132,505 | $ | 130,852 | $ | 134,749 | $ | 131,496 | $ | 131,460 | ||||||||||
Net interest income | $ | 119,304 | $ | 121,769 | $ | 115,969 | $ | 114,473 | $ | 113,395 | ||||||||||
Tax equivalent adjustment | 7,195 | 7,307 | 7,019 | 6,676 | 6,078 | |||||||||||||||
Net interest income on a fully tax equivalent basis | 126,499 | 129,076 | 122,988 | 121,149 | 119,473 | |||||||||||||||
Plus non-interest income | 81,693 | 75,625 | 82,251 | 82,949 | 81,268 | |||||||||||||||
Plus tax equivalent adjustment on the increase in cash surrender value of life insurance | 460 | 465 | 459 | 450 | 452 | |||||||||||||||
Less net (loss) gain on investment securities | — | (3 | ) | 371 | (84 | ) | (460 | ) | ||||||||||||
Less net (loss) gain on sale of other assets | (48 | ) | — | 1 | (7 | ) | 4 | |||||||||||||
Less increase (decrease) in market value of assets held in trust for deferred compensation | 8 | 565 | (872 | ) | 7 | 306 | ||||||||||||||
Net interest income plus non-interest income - as adjusted | $ | 208,692 | $ | 204,604 | $ | 206,198 | $ | 204,632 | $ | 201,343 | ||||||||||
Efficiency ratio | 63.49 | % | 63.95 | % | 65.35 | % | 64.26 | % | 65.29 | % | ||||||||||
Efficiency ratio (without adjustments) | 67.56 | % | 64.46 | % | 67.74 | % | 67.24 | % | 71.88 | % |
1Q16 | 4Q15 | 3Q15 | 2Q15 | 1Q15 | ||||||||||||||||
Non-interest expense | $ | 135,800 | $ | 127,231 | $ | 134,266 | $ | 132,737 | $ | 139,920 | ||||||||||
Less merger related and repositioning expenses | 3,287 | (4,186 | ) | 389 | 1,234 | 8,069 | ||||||||||||||
Less prepayment fees on interest bearing liabilities | — | — | — | — | 85 | |||||||||||||||
Less increase (decrease) in market value of assets held in trust for deferred compensation | 8 | 565 | (872 | ) | 7 | 306 | ||||||||||||||
Non-interest expense - as adjusted | 132,505 | 130,852 | 134,749 | 131,496 | 131,460 | |||||||||||||||
Non-interest income | 81,693 | 75,625 | 82,251 | 82,949 | 81,268 | |||||||||||||||
Less net (loss) gain on investment securities | — | (3 | ) | 371 | (84 | ) | (460 | ) | ||||||||||||
Less net (loss) gain on sale of other assets | (48 | ) | — | 1 | (7 | ) | 4 | |||||||||||||
Less increase (decrease) in market value of assets held in trust for deferred compensation | 8 | 565 | (872 | ) | 7 | 306 | ||||||||||||||
Non-interest income - as adjusted | 81,733 | 75,063 | 82,751 | 83,033 | 81,418 | |||||||||||||||
Less tax equivalent adjustment on the increase in cash surrender value of life insurance | 460 | 465 | 459 | 450 | 452 | |||||||||||||||
Net non-interest expense | $ | 50,312 | $ | 55,324 | $ | 51,539 | $ | 48,013 | $ | 49,590 | ||||||||||
Average assets | $ | 15,487,565 | $ | 15,244,633 | $ | 15,059,429 | $ | 14,631,999 | $ | 14,363,244 | ||||||||||
Annualized net non-interest expense to average assets | 1.31 | % | 1.44 | % | 1.36 | % | 1.32 | % | 1.40 | % | ||||||||||
Annualized net non-interest expense to average assets (without adjustments) | 1.41 | % | 1.34 | % | 1.37 | % | 1.36 | % | 1.66 | % |
1Q16 | 4Q15 | 3Q15 | 2Q15 | 1Q15 | ||||||||||||||||
Non-interest income | $ | 81,693 | $ | 75,625 | $ | 82,251 | $ | 82,949 | $ | 81,268 | ||||||||||
Plus tax equivalent adjustment on the increase in cash surrender value of life insurance | 460 | 465 | 459 | 450 | 452 | |||||||||||||||
Less net (loss) gain on investment securities | — | (3 | ) | 371 | (84 | ) | (460 | ) | ||||||||||||
Less net (loss) gain on sale of other assets | (48 | ) | — | 1 | (7 | ) | 4 | |||||||||||||
Less increase (decrease) in market value of assets held in trust for deferred compensation | 8 | 565 | (872 | ) | 7 | 306 | ||||||||||||||
Non-interest income - as adjusted | $ | 82,193 | $ | 75,528 | $ | 83,210 | $ | 83,483 | $ | 81,870 | ||||||||||
Net interest income | $ | 119,304 | $ | 121,769 | $ | 115,969 | $ | 114,473 | $ | 113,395 | ||||||||||
Tax equivalent adjustment | 7,195 | 7,307 | 7,019 | 6,676 | 6,078 | |||||||||||||||
Net interest income on a fully tax equivalent basis | 126,499 | 129,076 | 122,988 | 121,149 | 119,473 | |||||||||||||||
Plus non-interest income | 81,693 | 75,625 | 82,251 | 82,949 | 81,268 | |||||||||||||||
Plus tax equivalent adjustment on the increase in cash surrender value of life insurance | 460 | 465 | 459 | 450 | 452 | |||||||||||||||
Less net (loss) gain on investment securities | — | (3 | ) | 371 | (84 | ) | (460 | ) | ||||||||||||
Less net (loss) gain on sale of other assets | (48 | ) | — | 1 | (7 | ) | 4 | |||||||||||||
Less increase (decrease) in market value of assets held in trust for deferred compensation | 8 | 565 | (872 | ) | 7 | 306 | ||||||||||||||
Total revenue - as adjusted and on a fully tax equivalent basis | $ | 208,692 | $ | 204,604 | $ | 206,198 | $ | 204,632 | $ | 201,343 | ||||||||||
Total revenue - unadjusted | $ | 200,997 | $ | 197,394 | $ | 198,220 | $ | 197,422 | $ | 194,663 | ||||||||||
Core non-interest income to revenues ratio | 39.38 | % | 36.91 | % | 40.35 | % | 40.80 | % | 40.66 | % | ||||||||||
Non-interest income to revenues ratio (without adjustments) | 40.64 | % | 38.31 | % | 41.49 | % | 42.02 | % | 41.75 | % |
1Q16 | 1Q15 | 4Q15 | ||||||||||||||||||||||||||||||||
Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | ||||||||||||||||||||||||||
Interest Earning Assets: | ||||||||||||||||||||||||||||||||||
Loans held for sale | $ | 661,021 | $ | 5,966 | 3.61 | % | $ | 658,169 | $ | 5,785 | 3.52 | % | $ | 681,682 | $ | 6,276 | 3.68 | % | ||||||||||||||||
Loans (1) (2) (3): | ||||||||||||||||||||||||||||||||||
Commercial-related credits | ||||||||||||||||||||||||||||||||||
Commercial | 3,531,441 | 37,357 | 4.18 | 3,190,755 | 32,623 | 4.09 | 3,492,161 | 35,890 | 4.02 | |||||||||||||||||||||||||
Commercial loans collateralized by assignment of lease payments | 1,754,558 | 16,577 | 3.78 | 1,647,761 | 15,438 | 3.75 | 1,708,404 | 15,901 | 3.72 | |||||||||||||||||||||||||
Real estate commercial | 2,734,148 | 28,039 | 4.06 | 2,538,995 | 27,548 | 4.34 | 2,627,004 | 27,759 | 4.13 | |||||||||||||||||||||||||
Real estate construction | 276,797 | 2,902 | 4.15 | 191,257 | 4,081 | 8.54 | 274,188 | 3,736 | 5.33 | |||||||||||||||||||||||||
Total commercial-related credits | 8,296,944 | 84,875 | 4.05 | 7,568,768 | 79,690 | 4.21 | 8,101,757 | 83,286 | 4.02 | |||||||||||||||||||||||||
Other loans | ||||||||||||||||||||||||||||||||||
Real estate residential | 640,231 | 5,695 | 3.56 | 493,366 | 5,028 | 4.08 | 612,275 | 5,490 | 3.59 | |||||||||||||||||||||||||
Home equity | 210,678 | 2,033 | 3.88 | 246,537 | 2,468 | 4.06 | 219,440 | 2,142 | 3.87 | |||||||||||||||||||||||||
Indirect | 404,473 | 4,758 | 4.73 | 267,265 | 3,485 | 5.29 | 365,744 | 4,403 | 4.78 | |||||||||||||||||||||||||
Consumer loans | 80,569 | 794 | 3.97 | 72,374 | 797 | 4.47 | 83,869 | 777 | 3.67 | |||||||||||||||||||||||||
Total other loans | 1,335,951 | 13,280 | 4.00 | 1,079,542 | 11,778 | 4.42 | 1,281,328 | 12,812 | 3.97 | |||||||||||||||||||||||||
Total loans, excluding purchased credit-impaired loans | 9,632,895 | 98,155 | 4.10 | 8,648,310 | 91,468 | 4.29 | 9,383,085 | 96,098 | 4.06 | |||||||||||||||||||||||||
Purchased credit-impaired loans | 139,451 | 4,780 | 13.75 | 240,376 | 4,937 | 8.33 | 154,562 | 7,766 | 19.93 | |||||||||||||||||||||||||
Total loans | 9,772,346 | 102,935 | 4.24 | 8,888,686 | 96,405 | 4.40 | 9,537,647 | 103,864 | 4.32 | |||||||||||||||||||||||||
Taxable investment securities | 1,524,583 | 9,566 | 2.51 | 1,556,530 | 9,934 | 2.55 | 1,510,047 | 9,708 | 2.57 | |||||||||||||||||||||||||
Investment securities exempt from federal income taxes (3) | 1,362,468 | 16,579 | 4.87 | 1,126,133 | 14,021 | 4.98 | 1,383,592 | 16,875 | 4.88 | |||||||||||||||||||||||||
Federal funds sold | 42 | — | 1.00 | 16 | — | — | 100 | 1 | 1.00 | |||||||||||||||||||||||||
Other interest earning deposits | 113,748 | 141 | 0.50 | 102,346 | 62 | 0.25 | 141,891 | 110 | 0.31 | |||||||||||||||||||||||||
Total interest earning assets | $ | 13,434,208 | $ | 135,187 | 4.05 | % | $ | 12,331,880 | $ | 126,207 | 4.15 | % | $ | 13,254,959 | $ | 136,834 | 4.10 | % | ||||||||||||||||
Non-interest earning assets | 2,053,357 | 2,031,364 | 1,989,674 | |||||||||||||||||||||||||||||||
Total assets | $ | 15,487,565 | $ | 14,363,244 | $ | 15,244,633 | ||||||||||||||||||||||||||||
Interest Bearing Liabilities: | ||||||||||||||||||||||||||||||||||
Core funding: | ||||||||||||||||||||||||||||||||||
Money market, NOW and interest bearing deposits | $ | 4,109,150 | $ | 2,086 | 0.20 | % | $ | 3,937,707 | $ | 1,595 | 0.16 | % | $ | 4,214,099 | $ | 1,999 | 0.19 | % | ||||||||||||||||
Savings deposits | 984,019 | 159 | 0.06 | 952,345 | 120 | 0.05 | 959,049 | 123 | 0.05 | |||||||||||||||||||||||||
Certificates of deposit | 1,237,971 | 1,413 | 0.46 | 1,420,320 | 1,452 | 0.42 | 1,245,947 | 1,431 | 0.46 | |||||||||||||||||||||||||
Customer repurchase agreements | 190,114 | 94 | 0.20 | 245,875 | 119 | 0.20 | 230,412 | 115 | 0.20 | |||||||||||||||||||||||||
Total core funding | 6,521,254 | 3,752 | 0.23 | 6,556,247 | 3,286 | 0.20 | 6,649,507 | 3,668 | 0.22 | |||||||||||||||||||||||||
Wholesale funding: | ||||||||||||||||||||||||||||||||||
Brokered certificates of deposit (includes fee expense) | 534,910 | 1,964 | 1.48 | 476,245 | 1,478 | 1.26 | 492,839 | 1,804 | 1.45 | |||||||||||||||||||||||||
Other borrowings | 1,327,274 | 2,972 | 0.89 | 731,688 | 1,970 | 1.08 | 1,031,301 | 2,286 | 0.87 | |||||||||||||||||||||||||
Total wholesale funding | 1,862,184 | 4,936 | 1.07 | 1,207,933 | 3,448 | 1.12 | 1,524,140 | 4,090 | 1.06 | |||||||||||||||||||||||||
Total interest bearing liabilities | $ | 8,383,438 | $ | 8,688 | 0.42 | % | $ | 7,764,180 | $ | 6,734 | 0.35 | % | $ | 8,173,647 | $ | 7,758 | 0.38 | % | ||||||||||||||||
Non-interest bearing deposits | 4,606,008 | 4,199,948 | 4,617,076 | |||||||||||||||||||||||||||||||
Other non-interest bearing liabilities | 398,460 | 361,685 | 392,858 | |||||||||||||||||||||||||||||||
Stockholders' equity | 2,099,659 | 2,037,431 | 2,061,052 | |||||||||||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 15,487,565 | $ | 14,363,244 | $ | 15,244,633 | ||||||||||||||||||||||||||||
Net interest income/interest rate spread (4) | $ | 126,499 | 3.63 | % | $ | 119,473 | 3.80 | % | $ | 129,076 | 3.72 | % | ||||||||||||||||||||||
Taxable equivalent adjustment | 7,195 | 6,078 | 7,307 | |||||||||||||||||||||||||||||||
Net interest income, as reported | $ | 119,304 | $ | 113,395 | $ | 121,769 | ||||||||||||||||||||||||||||
Net interest margin (5) | 3.57 | % | 3.73 | % | 3.64 | % | ||||||||||||||||||||||||||||
Tax equivalent effect | 0.22 | % | 0.20 | % | 0.22 | % | ||||||||||||||||||||||||||||
Net interest margin on a fully tax equivalent basis (5) | 3.79 | % | 3.93 | % | 3.86 | % |
(1) | Non-accrual loans are included in average loans. |
(2) | Interest income includes amortization of deferred loan origination fees and costs. |
(3) | Non-taxable loan and investment income is presented on a fully tax equivalent basis assuming a 35% tax rate. |
(4) | Interest rate spread represents the difference between the average yield on interest earning assets and the average cost of interest bearing liabilities and is presented on a fully tax equivalent basis. |
(5) | Net interest margin represents net interest income as a percentage of average interest earning assets. |
1Q16 | 1Q15 | 4Q15 | |||||||||||||||||||||||||||||||
Average Balance | Interest | Yield | Average Balance | Interest | Yield | Average Balance | Interest | Yield | |||||||||||||||||||||||||
Loan yield excluding acquisition accounting discount accretion on Taylor Capital loans: | |||||||||||||||||||||||||||||||||
Total loans, as reported | $ | 9,772,346 | $ | 102,935 | 4.24 | % | $ | 8,888,686 | $ | 96,405 | 4.40 | % | $ | 9,537,647 | $ | 103,864 | 4.32 | % | |||||||||||||||
Less acquisition accounting discount accretion on non-PCI loans | (32,293 | ) | 4,950 | (57,802 | ) | 7,948 | (37,865 | ) | 6,193 | ||||||||||||||||||||||||
Less acquisition accounting discount accretion on PCI loans | (25,696 | ) | 2,403 | (35,092 | ) | 628 | (28,037 | ) | 3,510 | ||||||||||||||||||||||||
Total loans, excluding acquisition accounting discount accretion on Taylor Capital loans | $ | 9,830,335 | $ | 95,582 | 3.91 | % | $ | 8,981,580 | $ | 87,829 | 3.97 | % | $ | 9,603,549 | $ | 94,161 | 3.89 | % | |||||||||||||||
Net interest margin on a fully tax equivalent basis, excluding acquisition accounting discount accretion on Taylor Capital loans: | |||||||||||||||||||||||||||||||||
Total interest earning assets, as reported | $ | 13,434,208 | $ | 126,499 | 3.79 | % | $ | 12,331,880 | $ | 119,473 | 3.93 | % | $ | 13,254,959 | $ | 129,076 | 3.86 | % | |||||||||||||||
Less acquisition accounting discount accretion on non-PCI loans | (32,293 | ) | 4,950 | (57,802 | ) | 7,948 | (37,865 | ) | 6,193 | ||||||||||||||||||||||||
Less acquisition accounting discount accretion on PCI loans | (25,696 | ) | 2,403 | (35,092 | ) | 628 | (28,037 | ) | 3,510 | ||||||||||||||||||||||||
Total interest earning assets/net interest margin on a fully tax equivalent basis, excluding acquisition accounting discount accretion on Taylor Capital loans | $ | 13,492,197 | $ | 119,146 | 3.55 | % | $ | 12,424,774 | $ | 110,897 | 3.62 | % | $ | 13,320,861 | $ | 119,373 | 3.56 | % |
1Q16 | 4Q15 | |||||||
Acquisition accounting discount accretion on Taylor Capital loans | $ | 7,353 | $ | 9,703 | ||||
Provision for credit losses on Taylor Capital loans | 1,154 | — | ||||||
Earnings impact of discount accretion and merger related provision | 6,199 | 9,703 | ||||||
Tax expense | 2,460 | 3,850 | ||||||
Earnings impact of discount accretion and merger related provision, net of tax | $ | 3,739 | $ | 5,853 |