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: | October 20, 2016 | By: | /s/Randall T. Conte | |
Randall T. Conte | ||||
Vice President and Chief Financial Officer | ||||
(Principal Financial Officer) |
99 | MB Financial Inc.’s October 20, 2016 press release announcing its third quarter 2016 results of operations. |
MB Financial, Inc. | ||||
800 West Madison Street | ||||
Chicago, Illinois 60607 | ||||
(847) 653-7375 | ||||
NASDAQ: MBFI |
Nine Months Ended | |||||||||||||||||||||
September 30, | |||||||||||||||||||||
3Q16 | 2Q16 | 3Q15 | 2016 | 2015 | |||||||||||||||||
Net income - as reported | $ | 44,419 | $ | 43,412 | $ | 40,278 | $ | 126,945 | $ | 115,341 | |||||||||||
Non-core items | 15,363 | 2,454 | 17 | 21,152 | 9,952 | ||||||||||||||||
Income tax expense on non-core items | 7,867 | 1,003 | 6 | 9,447 | 3,949 | ||||||||||||||||
Non-core items, net of tax | 7,496 | 1,451 | 11 | 11,705 | 6,003 | ||||||||||||||||
Operating earnings | 51,915 | 44,863 | 40,289 | 138,650 | 121,344 | ||||||||||||||||
Dividends on preferred shares | 2,004 | 2,000 | 2,000 | 6,004 | 6,000 | ||||||||||||||||
Operating earnings available to common stockholders | $ | 49,911 | $ | 42,863 | $ | 38,289 | $ | 132,646 | $ | 115,344 | |||||||||||
Diluted operating earnings per common share | $ | 0.63 | $ | 0.58 | $ | 0.51 | $ | 1.75 | $ | 1.53 | |||||||||||
Weighted average common shares outstanding for diluted operating earnings per common share | 78,683,170 | 74,180,374 | 75,029,827 | 75,727,580 | 75,154,585 |
• | Net interest income on a fully tax equivalent basis increased $8.1 million (+6.2%) to $137.9 million in the third quarter of 2016 compared to the prior quarter due to higher average loan balances as a result of the loans acquired through the American Chartered merger as well as loan growth in our legacy portfolio. |
• | Our net interest margin on a fully tax equivalent basis, excluding accretion on loans acquired in the Taylor Capital and American Chartered mergers ("bank mergers"), decreased seven basis points to 3.50% compared to 3.57% last quarter primarily due to lower yields earned on loans. |
• | Our core non-interest income increased 18.0% to $107.7 million compared to $91.3 million in the prior quarter primarily due to an increase in mortgage banking and lease financing revenue. The increase in mortgage banking revenue was driven by higher origination fees as a result of higher origination volumes in the third quarter of 2016 and higher gains on sale margins. The increase in lease financing revenue was due to higher fees from the sale of third-party equipment maintenance contracts. |
• | Our core non-interest expense increased $9.6 million (+6.6%) compared to the prior quarter primarily due to an increase in salaries and employee benefits expense, which increased mainly due to the increased staff from the American Chartered merger, and commission expense. Commission expense increased as a result of higher mortgage loan origination volumes and lease financing revenue noted above. |
• | The Company adopted new authoritative accounting guidance under ASC Topic 718 "Compensation - Stock Compensation" in the third quarter of 2016, resulting in an income tax benefit of $1.8 million associated with stock-based compensation. Operating earnings were adjusted to exclude the $1.8 million income tax benefit in the table above. |
9/30/2016 | Change in Legacy Loan Balances from 6/30/2016 to 9/30/2016 | ||||||||||||||||||||||
Legacy (1) | Acquired (2) | Total | 6/30/2016 | Amount | Percent | ||||||||||||||||||
Commercial-related credits: | |||||||||||||||||||||||
Commercial | $ | 3,745,486 | $ | 640,326 | $ | 4,385,812 | $ | 3,561,500 | $ | 183,986 | +5.2 | % | |||||||||||
Commercial loans collateralized by assignment of lease payments (lease loans) | 1,873,380 | — | 1,873,380 | 1,794,465 | 78,915 | +4.4 | % | ||||||||||||||||
Commercial real estate | 2,849,270 | 945,531 | 3,794,801 | 2,827,720 | 21,550 | +0.8 | % | ||||||||||||||||
Construction real estate | 415,171 | 35,852 | 451,023 | 357,807 | 57,364 | +16.0 | % | ||||||||||||||||
Total commercial-related credits | 8,883,307 | 1,621,709 | 10,505,016 | 8,541,492 | 341,815 | +4.0 | % | ||||||||||||||||
Other loans: | |||||||||||||||||||||||
Residential real estate | 823,374 | 175,453 | 998,827 | 753,707 | 69,667 | +9.2 | % | ||||||||||||||||
Indirect vehicle | 522,271 | — | 522,271 | 491,480 | 30,791 | +6.3 | % | ||||||||||||||||
Home equity | 188,861 | 86,427 | 275,288 | 198,622 | (9,761 | ) | -4.9 | % | |||||||||||||||
Consumer | 77,013 | 943 | 77,956 | 75,775 | 1,238 | +1.6 | % | ||||||||||||||||
Total other loans | 1,611,519 | 262,823 | 1,874,342 | 1,519,584 | 91,935 | +6.1 | % | ||||||||||||||||
Total loans, excluding purchased credit-impaired | 10,494,826 | 1,884,532 | 12,379,358 | 10,061,076 | 433,750 | +4.3 | % | ||||||||||||||||
Purchased credit-impaired loans | 137,025 | 24,313 | 161,338 | 136,811 | 214 | +0.2 | % | ||||||||||||||||
Total loans | $ | 10,631,851 | $ | 1,908,845 | $ | 12,540,696 | $ | 10,197,887 | $ | 433,964 | +4.3 | % |
(1) | Legacy loans include loans previously acquired through the Taylor Capital merger. |
(2) | Acquired loans refer to the September 30, 2016 balance for loans acquired in the American Chartered merger. |
9/30/2016 | Change in Legacy Deposit Balances from 6/30/2016 to 9/30/2016 | ||||||||||||||||||||||
Legacy (1) | Assumed (2) | Total | 6/30/2016 | Amount | Percent | ||||||||||||||||||
Low cost deposits: | |||||||||||||||||||||||
Non-interest bearing deposits | $ | 5,055,261 | $ | 1,355,073 | $ | 6,410,334 | $ | 4,775,364 | $ | 279,897 | +5.9 | % | |||||||||||
Money market, NOW and interest bearing deposits | 3,896,438 | 763,969 | 4,660,407 | 3,771,111 | 125,327 | +3.3 | |||||||||||||||||
Savings deposits | 1,030,834 | 117,066 | 1,147,900 | 1,021,845 | 8,989 | +0.9 | |||||||||||||||||
Total low cost deposits | 9,982,533 | 2,236,108 | 12,218,641 | 9,568,320 | 414,213 | +4.3 | |||||||||||||||||
Certificates of deposit: | |||||||||||||||||||||||
Certificates of deposit | 1,145,303 | 152,883 | 1,298,186 | 1,220,562 | (75,259 | ) | -6.2 | ||||||||||||||||
Brokered certificates of deposit | 738,960 | 23,479 | 762,439 | 647,214 | 91,746 | +14.2 | |||||||||||||||||
Total certificates of deposit | 1,884,263 | 176,362 | 2,060,625 | 1,867,776 | 16,487 | +0.9 | |||||||||||||||||
Total deposits | $ | 11,866,796 | $ | 2,412,470 | $ | 14,279,266 | $ | 11,436,096 | $ | 430,700 | +3.8 | % |
(1) | Legacy deposits include deposits previously assumed through the Taylor Capital merger. |
(2) | Assumed deposits refer to the September 30, 2016 balance for deposits assumed in the American Chartered merger. |
• | Non-performing loans and non-performing assets decreased by $20.8 million and $15.4 million, respectively, from June 30, 2016 primarily due to problem loans repaid in the quarter. |
• | Potential problem loans increased by $11.8 million in the quarter. |
• | Net loan charge-offs during the quarter were $2.5 million, or 0.09% of loans (annualized), compared to net loan charge-offs of $2.2 million, or 0.09% of average loans (annualized), in the second quarter of 2016. |
• | Our allowance for loan and lease losses to total loans ratio was 1.11% at September 30, 2016 compared to 1.33% at June 30, 2016. The decrease in this ratio was primarily due to the loans acquired through the American Chartered merger. American Chartered's historical allowance for loan and lease losses does not transfer in purchase accounting, but an acquisition accounting discount on loans was recorded within the loan balances. The total acquisition accounting discount on these acquired loans was $34.1 million as of acquisition date. |
• | Provision for credit losses increased to $6.5 million in the third quarter of 2016 compared to $2.8 million in the prior quarter primarily due to loan growth in the quarter. |
Change from 2Q16 to 3Q16 | Change from 3Q15 to 3Q16 | Nine Months Ended | Change from 2015 to 2016 | |||||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||||||||
3Q16 | 2Q16 | 3Q15 | 2016 | 2015 | ||||||||||||||||||||||||||
Net interest income - fully tax equivalent | $ | 137,893 | $ | 129,810 | +6.2 | % | $ | 122,988 | +12.1 | % | $ | 394,202 | $ | 363,610 | +8.4 | % | ||||||||||||||
Net interest income - fully tax equivalent, excluding acquisition accounting discount accretion on bank merger loans | $ | 131,733 | $ | 122,108 | +7.9 | % | $ | 115,580 | +14.0 | % | $ | 372,986 | $ | 339,674 | +9.8 | % | ||||||||||||||
Net interest margin - fully tax equivalent | 3.68 | % | 3.81 | % | -0.13 | % | 3.73 | % | -0.05 | % | 3.76 | % | 3.83 | % | -0.07 | % | ||||||||||||||
Net interest margin - fully tax equivalent, excluding acquisition accounting discount accretion on bank merger loans | 3.50 | % | 3.57 | % | -0.07 | % | 3.49 | % | +0.01 | % | 3.54 | % | 3.56 | % | -0.02 | % |
Nine Months Ended | |||||||||||||||||||||||||||||
September 30, | |||||||||||||||||||||||||||||
3Q16 | 2Q16 | 1Q16 | 4Q15 | 3Q15 | 2016 | 2015 | |||||||||||||||||||||||
Core non-interest income: | |||||||||||||||||||||||||||||
Key fee initiatives: | |||||||||||||||||||||||||||||
Mortgage banking revenue | $ | 49,095 | $ | 39,615 | $ | 27,482 | $ | 26,542 | $ | 30,692 | $ | 116,192 | $ | 90,884 | |||||||||||||||
Lease financing revenue, net | 18,864 | 15,708 | 19,046 | 15,937 | 20,000 | 53,618 | 60,644 | ||||||||||||||||||||||
Commercial deposit and treasury management fees | 12,957 | 11,548 | 11,878 | 11,711 | 11,472 | 36,383 | 33,572 | ||||||||||||||||||||||
Trust and asset management fees | 8,244 | 8,236 | 7,950 | 6,077 | 6,002 | 24,430 | 17,468 | ||||||||||||||||||||||
Card fees | 4,161 | 4,045 | 3,525 | 3,651 | 3,335 | 11,731 | 11,671 | ||||||||||||||||||||||
Capital markets and international banking service fees | 3,313 | 2,771 | 3,227 | 2,355 | 2,357 | 9,311 | 5,793 | ||||||||||||||||||||||
Total key fee initiatives | 96,634 | 81,923 | 73,108 | 66,273 | 73,858 | 251,665 | 220,032 | ||||||||||||||||||||||
Consumer and other deposit service fees | 3,559 | 3,161 | 3,025 | 3,440 | 3,499 | 9,745 | 9,842 | ||||||||||||||||||||||
Brokerage fees | 1,294 | 1,315 | 1,158 | 1,252 | 1,281 | 3,767 | 4,502 | ||||||||||||||||||||||
Loan service fees | 1,792 | 1,961 | 1,752 | 1,890 | 1,531 | 5,505 | 4,369 | ||||||||||||||||||||||
Increase in cash surrender value of life insurance | 1,055 | 850 | 854 | 864 | 852 | 2,759 | 2,527 | ||||||||||||||||||||||
Other operating income | 3,337 | 2,043 | 1,836 | 1,344 | 1,730 | 7,216 | 5,930 | ||||||||||||||||||||||
Total core non-interest income | 107,671 | 91,253 | 81,733 | 75,063 | 82,751 | 280,657 | 247,202 | ||||||||||||||||||||||
Non-core non-interest income: | |||||||||||||||||||||||||||||
Net gain (loss) on investment securities | — | 269 | — | (3 | ) | 371 | 269 | (173 | ) | ||||||||||||||||||||
Net gain (loss) on sale of assets | 5 | (2 | ) | (48 | ) | — | 1 | (45 | ) | (2 | ) | ||||||||||||||||||
Increase (decrease) in market value of assets held in trust for deferred compensation (1) | 711 | 480 | 8 | 565 | (872 | ) | 1,199 | (559 | ) | ||||||||||||||||||||
Total non-core non-interest income | 716 | 747 | (40 | ) | 562 | (500 | ) | 1,423 | (734 | ) | |||||||||||||||||||
Total non-interest income | $ | 108,387 | $ | 92,000 | $ | 81,693 | $ | 75,625 | $ | 82,251 | $ | 282,080 | $ | 246,468 |
(1) | Resides in other operating income in the consolidated statements of operations. |
• | Mortgage banking revenue increased due to higher origination volumes as a result of the favorable interest rate environment and higher gains on sale margins. |
• | Lease financing revenues increased due to an increase in fees from the sale of third-party equipment maintenance contracts. |
• | Commercial deposit and treasury management fees increased primarily due to the increased customer base as a result of the American Chartered merger as well as new customer activity. |
• | Capital markets and international banking services fees increased due to higher swap and syndication fees partially offset by lower M&A advisory fees. |
• | Consumer and other deposit service fees increased due to the increased customer base as a result of the American Chartered merger as well as an increase in NSF fees. |
• | Other operating income increased due to higher earnings from investments in Small Business Investment Companies. |
• | Mortgage banking revenue increased due to higher mortgage servicing fees and higher gains on sale margins. |
• | Lease financing revenues decreased due to lower residual gains and fees from the sale of third-party equipment maintenance contracts. |
• | Commercial deposit and treasury management fees increased due to new customer activity as well as the increased customer base as a result of the American Chartered merger. |
• | Trust and asset management fees increased due to the addition of new customers as well as the acquisitions of MSA Holdings, LLC ("MSA") on December 31, 2015 and the Illinois court-appointed guardianship and special needs trust business in the third quarter of 2015. |
• | Capital markets and international banking services fees increased due to higher swap, syndication and M&A advisory fees partly offset by lower commercial real estate advisory fees. |
• | Loan service fees increased due to higher unused line and letter of credit fees. |
• | Other operating income increased due to higher earnings from investments in Small Business Investment Companies. |
Nine Months Ended | |||||||||||||||||||||||||||||
September 30, | |||||||||||||||||||||||||||||
3Q16 | 2Q16 | 1Q16 | 4Q15 | 3Q15 | 2016 | 2015 | |||||||||||||||||||||||
Core non-interest expense: (1) | |||||||||||||||||||||||||||||
Salaries and employee benefits expense: | |||||||||||||||||||||||||||||
Salaries | $ | 55,088 | $ | 51,383 | $ | 48,809 | $ | 48,433 | $ | 48,926 | $ | 155,280 | $ | 141,137 | |||||||||||||||
Commissions | 12,318 | 10,822 | 10,348 | 9,794 | 11,513 | 33,488 | 35,770 | ||||||||||||||||||||||
Bonus and stock-based compensation | 12,980 | 12,871 | 8,657 | 9,950 | 10,235 | 34,508 | 29,982 | ||||||||||||||||||||||
Health and accident insurance | 6,377 | 6,079 | 5,599 | 4,646 | 5,640 | 18,055 | 16,429 | ||||||||||||||||||||||
Other salaries and benefits (2) | 15,320 | 13,045 | 12,089 | 11,533 | 12,446 | 40,454 | 36,027 | ||||||||||||||||||||||
Total salaries and employee benefits expense | 102,083 | 94,200 | 85,502 | 84,356 | 88,760 | 281,785 | 259,345 | ||||||||||||||||||||||
Occupancy and equipment expense | 14,662 | 13,407 | 13,260 | 12,935 | 12,456 | 41,329 | 37,300 | ||||||||||||||||||||||
Computer services and telecommunication expense | 9,731 | 9,266 | 8,750 | 8,548 | 8,558 | 27,747 | 25,599 | ||||||||||||||||||||||
Advertising and marketing expense | 3,031 | 2,923 | 2,855 | 2,549 | 2,578 | 8,809 | 7,521 | ||||||||||||||||||||||
Professional and legal expense | 2,779 | 3,220 | 2,492 | 2,715 | 1,496 | 8,491 | 5,878 | ||||||||||||||||||||||
Other intangible amortization expense | 1,674 | 1,617 | 1,626 | 1,546 | 1,542 | 4,917 | 4,569 | ||||||||||||||||||||||
Net (gain) loss recognized on other real estate owned (A) | (890 | ) | (297 | ) | (637 | ) | (256 | ) | 520 | (1,824 | ) | 2,070 | |||||||||||||||||
Net (gain) loss recognized on other real estate owned related to FDIC transactions (A) | (18 | ) | 312 | 154 | (549 | ) | 65 | 448 | (296 | ) | |||||||||||||||||||
Other real estate expense, net (A) | 187 | 243 | 137 | 76 | (8 | ) | 567 | 423 | |||||||||||||||||||||
Other operating expenses | 21,067 | 19,814 | 18,366 | 18,932 | 18,782 | 59,247 | 55,296 | ||||||||||||||||||||||
Total core non-interest expense | 154,306 | 144,705 | 132,505 | 130,852 | 134,749 | 431,516 | 397,705 | ||||||||||||||||||||||
Non-core non-interest expense: (1) | |||||||||||||||||||||||||||||
Merger related and repositioning expenses (B) | 11,368 | 2,566 | 3,287 | (4,186 | ) | 389 | 17,221 | 9,622 | |||||||||||||||||||||
Branch exit and facilities impairment charges | — | 155 | — | — | — | 155 | 70 | ||||||||||||||||||||||
Prepayment fees on interest bearing liabilities | — | — | — | — | — | — | 85 | ||||||||||||||||||||||
Contribution to MB Financial Charitable Foundation (C) | 4,000 | — | — | — | — | 4,000 | — | ||||||||||||||||||||||
Increase (decrease) in market value of assets held in trust for deferred compensation (D) | 711 | 480 | 8 | 565 | (872 | ) | 1,199 | (559 | ) | ||||||||||||||||||||
Total non-core non-interest expense | 16,079 | 3,201 | 3,295 | (3,621 | ) | (483 | ) | 22,575 | 9,218 | ||||||||||||||||||||
Total non-interest expense | $ | 170,385 | $ | 147,906 | $ | 135,800 | $ | 127,231 | $ | 134,266 | $ | 454,091 | $ | 406,923 |
(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, C – Other operating expenses, and D – Salaries and employee benefits. |
(2) | Includes payroll taxes, 401(k) and profit sharing contributions, overtime and temporary help expenses. |
• | Salaries and employee benefits expense increased primarily due to the increased staff from the American Chartered merger. Salaries and employee benefits expense also increased as a result of the following: |
• | Commission expense increased due to higher mortgage commission expense resulting from higher mortgage origination volumes and higher leasing commission expense resulting from higher sales of third-party equipment maintenance contracts. |
• | Other salaries and benefits expense increased due to increased temporary help in our IT and mortgage areas, increased overtime in our mortgage area and higher 401(k) match and profit sharing contribution expense. |
• | Occupancy and equipment expense increased primarily due to the additional offices acquired through the American Chartered merger. |
• | Non-interest expense was also impacted by higher gains recognized on other real estate owned properties. |
• | Other operating expenses increased primarily due to higher filing and other loan expense as well as higher FDIC assessment fees as a result of a larger balance sheet due to the American Chartered merger. |
• | Salaries and employee benefits expense increased due to the following: |
• | Salaries increased due to annual pay increases effective in the beginning of the second quarter, new hires and the increased staff from the American Chartered merger. |
• | Commission expense decreased due to lower commissions paid in our leasing segment as a result of lower lease financing revenues. |
• | Bonus and stock-based compensation increased due to an increase in bonus expense based on company performance through September 2016. |
• | Other salaries and benefits expense increased due to increased temporary help in our IT and mortgage areas as well as higher 401(k) match and profit sharing contribution expense. |
• | Occupancy and equipment expense increased due to higher depreciation expense and rental operating expenses as a result of the acquisition of MSA and the American Chartered merger, new offices opened at our mortgage banking segment and an office relocation in our leasing segment. |
• | Computer services and telecommunication expense increased due to higher processing costs as a result of increased customer activity and investments in systems. |
• | Advertising and marketing expense increased due to increased brand awareness advertising. |
• | Professional and legal expense increased due to an increase in litigation and consulting fees. |
• | Non-interest expense was also impacted by higher gains recognized on other real estate owned properties. |
• | Other operating expenses increased due to higher FDIC premiums (as a result of MB Financial Bank, N.A. (the "Bank") exceeding $10 billion in assets), filing and other loan expense and card expenses (higher rewards and product development expense). |
Nine Months Ended | |||||||||||||||||||||||||||||
September 30, | |||||||||||||||||||||||||||||
3Q16 | 2Q16 | 1Q16 | 4Q15 | 3Q15 | 2016 | 2015 | |||||||||||||||||||||||
Merger related and repositioning expenses: | |||||||||||||||||||||||||||||
Salaries and employee benefits expense | $ | 8,684 | $ | 324 | $ | 81 | $ | (212 | ) | $ | 3 | $ | 9,089 | $ | 36 | ||||||||||||||
Occupancy and equipment expense | 104 | 8 | — | — | 2 | 112 | 275 | ||||||||||||||||||||||
Computer services and telecommunication expense | 3,105 | 511 | 305 | (103 | ) | 9 | 3,921 | 409 | |||||||||||||||||||||
Advertising and marketing expense | 53 | 41 | 23 | 2 | — | 117 | — | ||||||||||||||||||||||
Professional and legal expense | 1,681 | 101 | 97 | 1,454 | 305 | 1,879 | 1,006 | ||||||||||||||||||||||
Branch exit and facilities impairment charges | (2,908 | ) | — | 44 | 616 | 70 | (2,864 | ) | 7,829 | ||||||||||||||||||||
Contingent consideration expense - Celtic acquisition (1) | — | — | 2,703 | — | — | 2,703 | — | ||||||||||||||||||||||
Other operating expenses | 649 | 1,581 | 34 | (5,943 | ) | — | 2,264 | 67 | |||||||||||||||||||||
Total merger related and repositioning expenses | $ | 11,368 | $ | 2,566 | $ | 3,287 | $ | (4,186 | ) | $ | 389 | $ | 17,221 | $ | 9,622 |
(1) | Resides in other operating expenses in the consolidated statements of operations. |
Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||||||
3Q16 | 2Q16 | 1Q16 | 4Q15 | 3Q15 | 2016 | 2015 | ||||||||||||||||||||||
Net interest income | $ | 119,685 | $ | 112,152 | $ | 109,608 | $ | 111,691 | $ | 104,714 | $ | 341,445 | $ | 313,192 | ||||||||||||||
Provision for credit losses | 4,394 | 2,995 | 7,001 | 6,654 | 4,965 | 14,390 | 12,783 | |||||||||||||||||||||
Net interest income after provision for credit losses | 115,291 | 109,157 | 102,607 | 105,037 | 99,749 | 327,055 | 300,409 | |||||||||||||||||||||
Non-interest income: | ||||||||||||||||||||||||||||
Lease financing revenue, net | 890 | 789 | 679 | 1,180 | 637 | 2,358 | 1,570 | |||||||||||||||||||||
Mortgage origination fees | — | — | — | — | — | — | — | |||||||||||||||||||||
Mortgage servicing fees | — | — | — | — | — | — | — | |||||||||||||||||||||
Other non-interest income | 38,927 | 35,144 | 34,369 | 31,772 | 31,435 | 108,440 | 93,361 | |||||||||||||||||||||
Total non-interest income | 39,817 | 35,933 | 35,048 | 32,952 | 32,072 | 110,798 | 94,931 | |||||||||||||||||||||
Non-interest expense: | ||||||||||||||||||||||||||||
Salaries and employee benefits expense: | ||||||||||||||||||||||||||||
Salaries | 38,575 | 35,951 | 34,527 | 34,840 | 34,940 | 109,054 | 101,065 | |||||||||||||||||||||
Commissions | 1,172 | 1,424 | 1,396 | 1,503 | 932 | 3,991 | 3,429 | |||||||||||||||||||||
Bonus and stock-based compensation | 10,553 | 10,852 | 6,476 | 7,838 | 8,250 | 27,881 | 24,642 | |||||||||||||||||||||
Health and accident insurance | 4,045 | 3,816 | 3,461 | 2,765 | 3,508 | 11,322 | 10,551 | |||||||||||||||||||||
Other salaries and benefits (1) | 9,612 | 8,171 | 7,542 | 7,144 | 7,789 | 25,325 | 22,268 | |||||||||||||||||||||
Total salaries and employee benefits expense | 63,957 | 60,214 | 53,402 | 54,090 | 55,419 | 177,573 | 161,955 | |||||||||||||||||||||
Occupancy and equipment expense | 11,724 | 10,561 | 10,430 | 10,344 | 9,982 | 32,715 | 30,168 | |||||||||||||||||||||
Computer services and telecommunication expense | 7,418 | 6,945 | 6,446 | 6,200 | 6,179 | 20,809 | 18,783 | |||||||||||||||||||||
Professional and legal expense | 1,566 | 2,385 | 1,486 | 1,709 | 766 | 5,437 | 3,074 | |||||||||||||||||||||
Other operating expenses | 16,467 | 16,587 | 15,570 | 15,757 | 16,413 | 48,624 | 48,050 | |||||||||||||||||||||
Total non-interest expense | 101,132 | 96,692 | 87,334 | 88,100 | 88,759 | 285,158 | 262,030 | |||||||||||||||||||||
Income before income taxes | 53,976 | 48,398 | 50,321 | 49,889 | 43,062 | 152,695 | 133,310 | |||||||||||||||||||||
Income tax expense | 16,287 | 14,353 | 14,927 | 14,998 | 12,184 | 45,567 | 39,458 | |||||||||||||||||||||
Net income | $ | 37,689 | $ | 34,045 | $ | 35,394 | $ | 34,891 | $ | 30,878 | $ | 107,128 | $ | 93,852 |
(1) | Includes payroll taxes, 401(k) and profit sharing contributions, overtime and temporary help expenses. |
Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||||||
3Q16 | 2Q16 | 1Q16 | 4Q15 | 3Q15 | 2016 | 2015 | ||||||||||||||||||||||
Net interest income | $ | 2,168 | $ | 2,411 | $ | 2,423 | $ | 2,714 | $ | 2,832 | $ | 7,002 | $ | 8,762 | ||||||||||||||
Provision for credit losses | 1,964 | (356 | ) | 437 | — | 242 | 2,045 | 1,598 | ||||||||||||||||||||
Net interest income after provision for credit losses | 204 | 2,767 | 1,986 | 2,714 | 2,590 | 4,957 | 7,164 | |||||||||||||||||||||
Non-interest income: | ||||||||||||||||||||||||||||
Lease financing revenue, net | 17,974 | 14,919 | 18,367 | 14,757 | 19,363 | 51,260 | 59,074 | |||||||||||||||||||||
Mortgage origination fees | — | — | — | — | — | — | — | |||||||||||||||||||||
Mortgage servicing fees | — | — | — | — | — | — | — | |||||||||||||||||||||
Other non-interest income | 785 | 786 | 839 | 802 | 624 | 2,410 | 2,309 | |||||||||||||||||||||
Total non-interest income | 18,759 | 15,705 | 19,206 | 15,559 | 19,987 | 53,670 | 61,383 | |||||||||||||||||||||
Non-interest expense: | ||||||||||||||||||||||||||||
Salaries and employee benefits expense: | ||||||||||||||||||||||||||||
Salaries | 3,555 | 3,344 | 2,832 | 2,286 | 2,917 | 9,730 | 7,925 | |||||||||||||||||||||
Commissions | 2,592 | 2,172 | 3,936 | 3,047 | 3,714 | 8,701 | 12,251 | |||||||||||||||||||||
Bonus and stock-based compensation | 950 | 829 | 872 | 1,052 | 813 | 2,651 | 2,683 | |||||||||||||||||||||
Health and accident insurance | 376 | 376 | 335 | 312 | 331 | 1,087 | 975 | |||||||||||||||||||||
Other salaries and benefits (1) | 934 | 886 | 1,108 | 777 | 700 | 2,928 | 2,416 | |||||||||||||||||||||
Total salaries and employee benefits expense | 8,407 | 7,607 | 9,083 | 7,474 | 8,475 | 25,097 | 26,250 | |||||||||||||||||||||
Occupancy and equipment expense | 966 | 947 | 895 | 855 | 843 | 2,808 | 2,500 | |||||||||||||||||||||
Computer services and telecommunication expense | 432 | 431 | 363 | 340 | 335 | 1,226 | 904 | |||||||||||||||||||||
Professional and legal expense | 802 | 414 | 409 | 328 | 290 | 1,625 | 844 | |||||||||||||||||||||
Other operating expenses | 1,997 | 1,716 | 1,447 | 1,501 | 1,439 | 5,160 | 4,368 | |||||||||||||||||||||
Total non-interest expense | 12,604 | 11,115 | 12,197 | 10,498 | 11,382 | 35,916 | 34,866 | |||||||||||||||||||||
Income before income taxes | 6,359 | 7,357 | 8,995 | 7,775 | 11,195 | 22,711 | 33,681 | |||||||||||||||||||||
Income tax expense | 2,484 | 2,879 | 3,509 | 3,037 | 4,398 | 8,872 | 13,218 | |||||||||||||||||||||
Net income | $ | 3,875 | $ | 4,478 | $ | 5,486 | $ | 4,738 | $ | 6,797 | $ | 13,839 | $ | 20,463 |
(1) | Includes payroll taxes, 401(k) and profit sharing contributions, overtime and temporary help expenses. |
Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||||||
3Q16 | 2Q16 | 1Q16 | 4Q15 | 3Q15 | 2016 | 2015 | ||||||||||||||||||||||
Net interest income | $ | 8,918 | $ | 8,039 | $ | 7,273 | $ | 7,364 | $ | 8,423 | $ | 24,230 | $ | 21,883 | ||||||||||||||
Provision for credit losses | 191 | 190 | 125 | 104 | 151 | 506 | 247 | |||||||||||||||||||||
Net interest income after provision for credit losses | 8,727 | 7,849 | 7,148 | 7,260 | 8,272 | 23,724 | 21,636 | |||||||||||||||||||||
Non-interest income: | ||||||||||||||||||||||||||||
Lease financing revenue, net | — | — | — | — | — | — | — | |||||||||||||||||||||
Mortgage origination fees | 39,962 | 31,417 | 16,894 | 17,596 | 23,449 | 88,273 | 77,106 | |||||||||||||||||||||
Mortgage servicing fees | 9,133 | 8,198 | 10,588 | 8,946 | 7,243 | 27,919 | 13,778 | |||||||||||||||||||||
Other non-interest income | — | — | (3 | ) | 10 | — | (3 | ) | 4 | |||||||||||||||||||
Total non-interest income | 49,095 | 39,615 | 27,479 | 26,552 | 30,692 | 116,189 | 90,888 | |||||||||||||||||||||
Non-interest expense: | ||||||||||||||||||||||||||||
Salaries and employee benefits expense: | ||||||||||||||||||||||||||||
Salaries | 12,958 | 12,088 | 11,450 | 11,307 | 11,069 | 36,496 | 32,147 | |||||||||||||||||||||
Commissions | 8,554 | 7,226 | 5,016 | 5,244 | 6,867 | 20,796 | 20,090 | |||||||||||||||||||||
Bonus and stock-based compensation | 1,477 | 1,190 | 1,309 | 1,060 | 1,172 | 3,976 | 2,657 | |||||||||||||||||||||
Health and accident insurance | 1,956 | 1,887 | 1,803 | 1,569 | 1,801 | 5,646 | 4,903 | |||||||||||||||||||||
Other salaries and benefits (1) | 4,774 | 3,988 | 3,439 | 3,612 | 3,957 | 12,201 | 11,343 | |||||||||||||||||||||
Total salaries and employee benefits expense | 29,719 | 26,379 | 23,017 | 22,792 | 24,866 | 79,115 | 71,140 | |||||||||||||||||||||
Occupancy and equipment expense | 1,972 | 1,899 | 1,935 | 1,736 | 1,631 | 5,806 | 4,632 | |||||||||||||||||||||
Computer services and telecommunication expense | 1,881 | 1,890 | 1,941 | 2,008 | 2,044 | 5,712 | 5,912 | |||||||||||||||||||||
Professional and legal expense | 411 | 421 | 597 | 678 | 440 | 1,429 | 1,960 | |||||||||||||||||||||
Other operating expenses | 6,587 | 6,309 | 5,484 | 5,040 | 5,627 | 18,380 | 17,165 | |||||||||||||||||||||
Total non-interest expense | 40,570 | 36,898 | 32,974 | 32,254 | 34,608 | 110,442 | 100,809 | |||||||||||||||||||||
Income before income taxes | 17,252 | 10,566 | 1,653 | 1,558 | 4,356 | 29,471 | 11,715 | |||||||||||||||||||||
Income tax expense | 6,901 | 4,226 | 661 | 623 | 1,742 | 11,788 | 4,686 | |||||||||||||||||||||
Net income | $ | 10,351 | $ | 6,340 | $ | 992 | $ | 935 | $ | 2,614 | $ | 17,683 | $ | 7,029 |
(1) | Includes payroll taxes, 401(k) and profit sharing contributions, overtime and temporary help expenses. |
3Q16 | 2Q16 | 1Q16 | 4Q15 | 3Q15 | ||||||||||||||||
Origination volume: | $ | 1,976,377 | $ | 1,709,044 | $ | 1,328,804 | $ | 1,437,057 | $ | 1,880,960 | ||||||||||
Refinance | 48 | % | 42 | % | 49 | % | 42 | % | 34 | % | ||||||||||
Purchase | 52 | 58 | 51 | 58 | 66 | |||||||||||||||
Origination volume by channel: | ||||||||||||||||||||
Retail | 22 | % | 23 | % | 19 | % | 18 | % | 18 | % | ||||||||||
Third party | 78 | 77 | 81 | 82 | 82 | |||||||||||||||
Mortgage servicing book (unpaid principal balance of loans serviced for others) at period end (1) | $ | 18,477,648 | $ | 17,739,626 | $ | 16,911,325 | $ | 16,218,613 | $ | 15,582,911 | ||||||||||
Mortgage servicing rights, recorded at fair value, at period end | 154,730 | 134,969 | 145,800 | 168,162 | 148,097 | |||||||||||||||
Notional value of rate lock commitments, at period end | 1,201,100 | 981,000 | 823,000 | 622,906 | 800,162 |
9/30/2016 | 6/30/2016 | 3/31/2016 | 12/31/2015 | 9/30/2015 | |||||||||||||||||||||||||||||||
Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||||||||||||||||||
Commercial-related credits: | |||||||||||||||||||||||||||||||||||
Commercial | $ | 4,385,812 | 35 | % | $ | 3,561,500 | 35 | % | $ | 3,509,604 | 36 | % | $ | 3,616,286 | 37 | % | $ | 3,440,632 | 37 | % | |||||||||||||||
Commercial loans collateralized by assignment of lease payments (lease loans) | 1,873,380 | 15 | 1,794,465 | 18 | 1,774,104 | 18 | 1,779,072 | 18 | 1,693,540 | 18 | |||||||||||||||||||||||||
Commercial real estate | 3,794,801 | 30 | 2,827,720 | 28 | 2,831,814 | 28 | 2,695,676 | 27 | 2,580,009 | 27 | |||||||||||||||||||||||||
Construction real estate | 451,023 | 4 | 357,807 | 3 | 310,278 | 3 | 252,060 | 3 | 255,620 | 3 | |||||||||||||||||||||||||
Total commercial-related credits | 10,505,016 | 84 | 8,541,492 | 84 | 8,425,800 | 85 | 8,343,094 | 85 | 7,969,801 | 85 | |||||||||||||||||||||||||
Other loans: | |||||||||||||||||||||||||||||||||||
Residential real estate | 998,827 | 8 | 753,707 | 7 | 677,791 | 7 | 628,169 | 6 | 607,171 | 6 | |||||||||||||||||||||||||
Indirect vehicle | 522,271 | 4 | 491,480 | 5 | 432,915 | 4 | 384,095 | 4 | 345,731 | 4 | |||||||||||||||||||||||||
Home equity | 275,288 | 2 | 198,622 | 2 | 207,079 | 2 | 216,573 | 2 | 223,173 | 2 | |||||||||||||||||||||||||
Consumer | 77,956 | 1 | 75,775 | 1 | 77,318 | 1 | 80,661 | 1 | 87,612 | 1 | |||||||||||||||||||||||||
Total other loans | 1,874,342 | 15 | 1,519,584 | 15 | 1,395,103 | 14 | 1,309,498 | 13 | 1,263,687 | 13 | |||||||||||||||||||||||||
Total loans, excluding purchased credit-impaired loans | 12,379,358 | 99 | 10,061,076 | 99 | 9,820,903 | 99 | 9,652,592 | 98 | 9,233,488 | 98 | |||||||||||||||||||||||||
Purchased credit-impaired loans | 161,338 | 1 | 136,811 | 1 | 140,445 | 1 | 141,406 | 2 | 155,693 | 2 | |||||||||||||||||||||||||
Total loans | $ | 12,540,696 | 100 | % | $ | 10,197,887 | 100 | % | $ | 9,961,348 | 100 | % | $ | 9,793,998 | 100 | % | $ | 9,389,181 | 100 | % | |||||||||||||||
Change from prior quarter | +23.0 | % | +2.4 | % | +1.7 | % | +4.3 | % | +3.2 | % |
3Q16 | 2Q16 | 1Q16 | 4Q15 | 3Q15 | |||||||||||||||||||||||||||||||
Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||||||||||||||||||
Commercial-related credits: | |||||||||||||||||||||||||||||||||||
Commercial | $ | 3,850,588 | 35 | % | $ | 3,522,641 | 35 | % | $ | 3,531,441 | 36 | % | $ | 3,492,161 | 37 | % | $ | 3,372,279 | 37 | % | |||||||||||||||
Commercial loans collateralized by assignment of lease payments (lease loans) | 1,825,505 | 16 | 1,777,763 | 18 | 1,754,558 | 18 | 1,708,404 | 18 | 1,674,939 | 18 | |||||||||||||||||||||||||
Commercial real estate | 3,183,131 | 29 | 2,821,516 | 28 | 2,734,148 | 28 | 2,627,004 | 28 | 2,568,539 | 28 | |||||||||||||||||||||||||
Construction real estate | 397,480 | 4 | 351,079 | 3 | 276,797 | 3 | 274,188 | 2 | 210,506 | 2 | |||||||||||||||||||||||||
Total commercial-related credits | 9,256,704 | 84 | 8,472,999 | 84 | 8,296,944 | 85 | 8,101,757 | 85 | 7,826,263 | 85 | |||||||||||||||||||||||||
Other loans: | |||||||||||||||||||||||||||||||||||
Residential real estate | 862,393 | 7 | 710,384 | 7 | 640,231 | 7 | 612,275 | 6 | 566,115 | 6 | |||||||||||||||||||||||||
Indirect vehicle | 507,772 | 5 | 462,053 | 5 | 404,473 | 4 | 365,744 | 4 | 325,323 | 4 | |||||||||||||||||||||||||
Home equity | 231,399 | 2 | 202,228 | 2 | 210,678 | 2 | 219,440 | 2 | 226,365 | 2 | |||||||||||||||||||||||||
Consumer | 77,451 | 1 | 78,108 | 1 | 80,569 | 1 | 83,869 | 1 | 85,044 | 1 | |||||||||||||||||||||||||
Total other loans | 1,679,015 | 15 | 1,452,773 | 15 | 1,335,951 | 14 | 1,281,328 | 13 | 1,202,847 | 13 | |||||||||||||||||||||||||
Total loans, excluding purchased credit-impaired loans | 10,935,719 | 99 | 9,925,772 | 99 | 9,632,895 | 99 | 9,383,085 | 98 | 9,029,110 | 98 | |||||||||||||||||||||||||
Purchased credit-impaired loans | 135,548 | 1 | 136,415 | 1 | 139,451 | 1 | 154,562 | 2 | 156,309 | 2 | |||||||||||||||||||||||||
Total loans | $ | 11,071,267 | 100 | % | $ | 10,062,187 | 100 | % | $ | 9,772,346 | 100 | % | $ | 9,537,647 | 100 | % | $ | 9,185,419 | 100 | % | |||||||||||||||
Change from prior quarter | +10.0 | % | +3.0 | % | +2.5 | % | +3.8 | % | +2.4 | % |
9/30/2016 | 6/30/2016 | 3/31/2016 | 12/31/2015 | 9/30/2015 | ||||||||||||||||
Non-performing loans: | ||||||||||||||||||||
Non-accrual loans (1) | $ | 52,135 | $ | 67,544 | $ | 93,602 | $ | 98,065 | $ | 92,302 | ||||||||||
Loans 90 days or more past due, still accruing interest | 1,774 | 7,190 | 1,112 | 6,596 | 4,275 | |||||||||||||||
Total non-performing loans | 53,909 | 74,734 | 94,714 | 104,661 | 96,577 | |||||||||||||||
Other real estate owned | 33,105 | 27,663 | 28,309 | 31,553 | 29,587 | |||||||||||||||
Repossessed assets | 453 | 459 | 187 | 81 | 216 | |||||||||||||||
Total non-performing assets | $ | 87,467 | $ | 102,856 | $ | 123,210 | $ | 136,295 | $ | 126,380 | ||||||||||
Potential problem loans (2) | $ | 111,594 | $ | 99,782 | $ | 110,193 | $ | 139,941 | $ | 122,966 | ||||||||||
Purchased credit-impaired loans | $ | 161,338 | $ | 136,811 | $ | 140,445 | $ | 141,406 | $ | 155,693 | ||||||||||
Total non-performing, potential problem and purchased credit-impaired loans | $ | 326,841 | $ | 311,327 | $ | 345,352 | $ | 386,008 | $ | 375,236 | ||||||||||
Total allowance for loan and lease losses | $ | 139,528 | $ | 135,614 | $ | 134,493 | $ | 128,140 | $ | 124,626 | ||||||||||
Accruing restructured loans (3) | 28,582 | 26,715 | 27,269 | 26,991 | 20,120 | |||||||||||||||
Total non-performing loans to total loans | 0.43 | % | 0.73 | % | 0.95 | % | 1.07 | % | 1.03 | % | ||||||||||
Total non-performing assets to total assets | 0.45 | 0.64 | 0.79 | 0.87 | 0.85 | |||||||||||||||
Allowance for loan and lease losses to non-performing loans | 258.82 | 181.46 | 142.00 | 122.43 | 129.04 |
(1) | Includes $23.4 million, $28.9 million, $24.0 million, $23.6 million and $21.4 million of restructured loans on non-accrual status at September 30, 2016, June 30, 2016, March 31, 2016, December 31, 2015 and September 30, 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 of loans that have been modified and are performing in accordance with those modified terms as of the dates indicated. |
9/30/2016 | 6/30/2016 | 3/31/2016 | 12/31/2015 | 9/30/2015 | ||||||||||||||||
Commercial and lease | $ | 14,898 | $ | 29,509 | $ | 28,590 | $ | 37,076 | $ | 34,465 | ||||||||||
Commercial real estate | 4,655 | 7,163 | 27,786 | 29,073 | 25,437 | |||||||||||||||
Consumer-related | 34,356 | 38,062 | 38,338 | 38,512 | 36,675 | |||||||||||||||
Total non-performing loans | $ | 53,909 | $ | 74,734 | $ | 94,714 | $ | 104,661 | $ | 96,577 |
9/30/2016 | 6/30/2016 | 3/31/2016 | 12/31/2015 | 9/30/2015 | ||||||||||||||||
Balance at the beginning of quarter | $ | 27,663 | $ | 28,309 | $ | 31,553 | $ | 29,587 | $ | 28,517 | ||||||||||
Transfers in at fair value less estimated costs to sell | 929 | 1,367 | 1,270 | 5,964 | 2,402 | |||||||||||||||
Acquired from business combination | 4,148 | — | — | — | — | |||||||||||||||
Capitalized other real estate owned costs | 96 | — | — | — | — | |||||||||||||||
Fair value adjustments | 865 | 70 | 45 | (721 | ) | (565 | ) | |||||||||||||
Net gains on sales of other real estate owned | 25 | 227 | 592 | 977 | 45 | |||||||||||||||
Cash received upon disposition | (621 | ) | (2,310 | ) | (5,151 | ) | (4,254 | ) | (812 | ) | ||||||||||
Balance at the end of quarter | $ | 33,105 | $ | 27,663 | $ | 28,309 | $ | 31,553 | $ | 29,587 |
Nine Months Ended | |||||||||||||||||||||||||||||
September 30, | |||||||||||||||||||||||||||||
3Q16 | 2Q16 | 1Q16 | 4Q15 | 3Q15 | 2016 | 2015 | |||||||||||||||||||||||
Allowance for credit losses, balance at the beginning of period | $ | 138,333 | $ | 137,732 | $ | 131,508 | $ | 128,038 | $ | 124,130 | $ | 131,508 | $ | 114,057 | |||||||||||||||
Provision for credit losses | 6,549 | 2,829 | 7,563 | 6,758 | 5,358 | 16,941 | 14,628 | ||||||||||||||||||||||
Charge-offs: | |||||||||||||||||||||||||||||
Commercial loans | 1,341 | 72 | 713 | 710 | 1,657 | 2,126 | 2,283 | ||||||||||||||||||||||
Commercial loans collateralized by assignment of lease payments (lease loans) | 367 | 2,347 | 574 | 685 | 1,980 | 3,288 | 2,080 | ||||||||||||||||||||||
Commercial real estate | 529 | 1,720 | 352 | 1,251 | 170 | 2,601 | 2,312 | ||||||||||||||||||||||
Construction real estate | 7 | 144 | — | 23 | 5 | 151 | 11 | ||||||||||||||||||||||
Residential real estate | 290 | 476 | 368 | 261 | 292 | 1,134 | 1,189 | ||||||||||||||||||||||
Home equity | 376 | 619 | 238 | 407 | 358 | 1,233 | 1,078 | ||||||||||||||||||||||
Indirect vehicle | 838 | 651 | 931 | 898 | 581 | 2,420 | 2,082 | ||||||||||||||||||||||
Consumer loans | 409 | 395 | 412 | 550 | 467 | 1,216 | 1,391 | ||||||||||||||||||||||
Total charge-offs | 4,157 | 6,424 | 3,588 | 4,785 | 5,510 | 14,169 | 12,426 | ||||||||||||||||||||||
Recoveries: | |||||||||||||||||||||||||||||
Commercial loans | 665 | 952 | 380 | 235 | 456 | 1,997 | 1,514 | ||||||||||||||||||||||
Commercial loans collateralized by assignment of lease payments (lease loans) | 3 | 467 | 50 | 12 | 11 | 520 | 1,100 | ||||||||||||||||||||||
Commercial real estate | 324 | 1,843 | 594 | 385 | 2,402 | 2,761 | 6,338 | ||||||||||||||||||||||
Construction real estate | 50 | 17 | 27 | 19 | 216 | 94 | 253 | ||||||||||||||||||||||
Residential real estate | 45 | 82 | 24 | 98 | 337 | 151 | 417 | ||||||||||||||||||||||
Home equity | 65 | 193 | 318 | 132 | 186 | 576 | 447 | ||||||||||||||||||||||
Indirect vehicle | 436 | 501 | 463 | 499 | 334 | 1,400 | 1,354 | ||||||||||||||||||||||
Consumer loans | 86 | 141 | 393 | 117 | 118 | 620 | 356 | ||||||||||||||||||||||
Total recoveries | 1,674 | 4,196 | 2,249 | 1,497 | 4,060 | 8,119 | 11,779 | ||||||||||||||||||||||
Total net charge-offs | 2,483 | 2,228 | 1,339 | 3,288 | 1,450 | 6,050 | 647 | ||||||||||||||||||||||
Allowance for credit losses | 142,399 | 138,333 | 137,732 | 131,508 | 128,038 | 142,399 | 128,038 | ||||||||||||||||||||||
Allowance for unfunded credit commitments | (2,871 | ) | (2,719 | ) | (3,239 | ) | (3,368 | ) | (3,412 | ) | (2,871 | ) | (3,412 | ) | |||||||||||||||
Allowance for loan and lease losses | $ | 139,528 | $ | 135,614 | $ | 134,493 | $ | 128,140 | $ | 124,626 | $ | 139,528 | $ | 124,626 | |||||||||||||||
Total loans, excluding loans held for sale | $ | 12,540,696 | $ | 10,197,887 | $ | 9,961,348 | $ | 9,793,998 | $ | 9,389,181 | $ | 12,540,696 | $ | 9,389,181 | |||||||||||||||
Average loans, excluding loans held for sale | 11,071,267 | 10,062,187 | 9,772,346 | 9,537,647 | 9,185,419 | 10,304,741 | 9,015,726 | ||||||||||||||||||||||
Allowance for loan and lease losses to total loans, excluding loans held for sale | 1.11 | % | 1.33 | % | 1.35 | % | 1.31 | % | 1.33 | % | 1.11 | % | 1.33 | % | |||||||||||||||
Net loan charge-offs to average loans, excluding loans held for sale (annualized) | 0.09 | 0.09 | 0.06 | 0.14 | 0.06 | 0.08 | 0.01 |
9/30/2016 | 6/30/2016 | 3/31/2016 | 12/31/2015 | 9/30/2015 | ||||||||||||||||
Commercial related loans: | ||||||||||||||||||||
General reserve | $ | 112,653 | $ | 108,972 | $ | 98,001 | $ | 94,164 | $ | 93,903 | ||||||||||
Specific reserve | 9,698 | 12,205 | 20,995 | 16,173 | 13,683 | |||||||||||||||
Consumer related reserve | 17,177 | 14,437 | 15,497 | 17,803 | 17,040 | |||||||||||||||
Total allowance for loan and lease losses | $ | 139,528 | $ | 135,614 | $ | 134,493 | $ | 128,140 | $ | 124,626 |
• | 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 | $ | 9,435 | $ | 12,677 | $ | 24,428 | $ | 46,540 | ||||||||
Purchases | 4,293 | 805 | 29,042 | 34,140 | ||||||||||||
Charge-offs | (110 | ) | — | — | (110 | ) | ||||||||||
Accretion | — | (2,046 | ) | (4,114 | ) | (6,160 | ) | |||||||||
Transfer | (2,488 | ) | 2,488 | — | — | |||||||||||
Balance at end of period | $ | 11,130 | $ | 13,924 | $ | 49,356 | $ | 74,410 |
Non-Accretable Discount - PCI Loans | Accretable Discount - PCI Loans | Accretable Discount - Non-PCI Loans | Total | |||||||||||||
Balance at beginning of period | $ | 10,954 | $ | 13,479 | $ | 29,818 | $ | 54,251 | ||||||||
Charge-offs | (9 | ) | — | — | (9 | ) | ||||||||||
Accretion | — | (2,312 | ) | (5,390 | ) | (7,702 | ) | |||||||||
Transfer | (1,510 | ) | 1,510 | — | — | |||||||||||
Balance at end of period | $ | 9,435 | $ | 12,677 | $ | 24,428 | $ | 46,540 |
9/30/2016 | 6/30/2016 | 3/31/2016 | 12/31/2015 | 9/30/2015 | ||||||||||||||||
Securities available for sale: | ||||||||||||||||||||
Fair value | ||||||||||||||||||||
Government sponsored agencies and enterprises | $ | 53,992 | $ | 54,457 | $ | 64,762 | $ | 64,611 | $ | 65,461 | ||||||||||
States and political subdivisions | 410,737 | 400,948 | 398,024 | 396,367 | 399,274 | |||||||||||||||
Mortgage-backed securities | 1,173,306 | 785,367 | 834,559 | 893,656 | 847,426 | |||||||||||||||
Corporate bonds | 210,193 | 225,525 | 224,530 | 219,628 | 228,251 | |||||||||||||||
Equity securities | 11,128 | 11,098 | 10,969 | 10,761 | 10,826 | |||||||||||||||
Total fair value | $ | 1,859,356 | $ | 1,477,395 | $ | 1,532,844 | $ | 1,585,023 | $ | 1,551,238 | ||||||||||
Amortized cost | ||||||||||||||||||||
Government sponsored agencies and enterprises | $ | 53,480 | $ | 53,674 | $ | 63,600 | $ | 63,805 | $ | 64,008 | ||||||||||
States and political subdivisions | 383,041 | 369,816 | 371,006 | 373,285 | 379,015 | |||||||||||||||
Mortgage-backed securities | 1,160,772 | 769,109 | 820,825 | 888,325 | 834,791 | |||||||||||||||
Corporate bonds | 208,940 | 224,730 | 225,657 | 222,784 | 228,711 | |||||||||||||||
Equity securities | 10,932 | 10,872 | 10,814 | 10,757 | 10,701 | |||||||||||||||
Total amortized cost | $ | 1,817,165 | $ | 1,428,201 | $ | 1,491,902 | $ | 1,558,956 | $ | 1,517,226 | ||||||||||
Unrealized gain, net | ||||||||||||||||||||
Government sponsored agencies and enterprises | $ | 512 | $ | 783 | $ | 1,162 | $ | 806 | $ | 1,453 | ||||||||||
States and political subdivisions | 27,696 | 31,132 | 27,018 | 23,082 | 20,259 | |||||||||||||||
Mortgage-backed securities | 12,534 | 16,258 | 13,734 | 5,331 | 12,635 | |||||||||||||||
Corporate bonds | 1,253 | 795 | (1,127 | ) | (3,156 | ) | (460 | ) | ||||||||||||
Equity securities | 196 | 226 | 155 | 4 | 125 | |||||||||||||||
Total unrealized gain, net | $ | 42,191 | $ | 49,194 | $ | 40,942 | $ | 26,067 | $ | 34,012 | ||||||||||
Securities held to maturity, at amortized cost: | ||||||||||||||||||||
States and political subdivisions | $ | 939,491 | $ | 960,784 | $ | 986,340 | $ | 1,016,519 | $ | 1,002,963 | ||||||||||
Mortgage-backed securities | 175,771 | 190,631 | 205,570 | 214,291 | 221,889 | |||||||||||||||
Total amortized cost | $ | 1,115,262 | $ | 1,151,415 | $ | 1,191,910 | $ | 1,230,810 | $ | 1,224,852 |
9/30/2016 | 6/30/2016 | 3/31/2016 | 12/31/2015 | 9/30/2015 | |||||||||||||||||||||||||||||||
Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||||||||||||||||||
Low cost deposits: | |||||||||||||||||||||||||||||||||||
Non-interest bearing deposits | $ | 6,410,334 | 45 | % | $ | 4,775,364 | 42 | % | $ | 4,667,410 | 40 | % | $ | 4,627,184 | 40 | % | $ | 4,434,067 | 39 | % | |||||||||||||||
Money market, NOW and interest bearing deposits | 4,660,407 | 33 | 3,771,111 | 33 | 4,048,054 | 35 | 4,144,633 | 36 | 4,129,414 | 37 | |||||||||||||||||||||||||
Savings deposits | 1,147,900 | 8 | 1,021,845 | 9 | 991,300 | 9 | 974,555 | 8 | 953,746 | 8 | |||||||||||||||||||||||||
Total low cost deposits | 12,218,641 | 86 | 9,568,320 | 84 | 9,706,764 | 84 | 9,746,372 | 84 | 9,517,227 | 84 | |||||||||||||||||||||||||
Certificates of deposit: | |||||||||||||||||||||||||||||||||||
Certificates of deposit | 1,298,186 | 9 | 1,220,562 | 11 | 1,255,457 | 11 | 1,244,292 | 11 | 1,279,842 | 12 | |||||||||||||||||||||||||
Brokered certificates of deposit | 762,439 | 5 | 647,214 | 5 | 571,605 | 5 | 514,551 | 5 | 457,509 | 4 | |||||||||||||||||||||||||
Total certificates of deposit | 2,060,625 | 14 | 1,867,776 | 16 | 1,827,062 | 16 | 1,758,843 | 16 | 1,737,351 | 16 | |||||||||||||||||||||||||
Total deposits | $ | 14,279,266 | 100 | % | $ | 11,436,096 | 100 | % | $ | 11,533,826 | 100 | % | $ | 11,505,215 | 100 | % | $ | 11,254,578 | 100 | % | |||||||||||||||
Change from prior quarter | +24.9 | % | -0.8 | % | +0.2 | % | +2.2 | % | +3.6 | % |
3Q16 | 2Q16 | 1Q16 | 4Q15 | 3Q15 | |||||||||||||||||||||||||||||||
Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||||||||||||||||||
Low cost deposits: | |||||||||||||||||||||||||||||||||||
Non-interest bearing deposits | $ | 5,524,043 | 43 | % | $ | 4,806,692 | 42 | % | $ | 4,606,008 | 40 | % | $ | 4,617,076 | 40 | % | $ | 4,428,065 | 39 | % | |||||||||||||||
Money market, NOW and interest bearing deposits | 4,161,913 | 33 | 3,836,134 | 33 | 4,109,150 | 36 | 4,214,099 | 37 | 4,119,625 | 36 | |||||||||||||||||||||||||
Savings deposits | 1,080,609 | 8 | 1,006,902 | 9 | 984,019 | 9 | 959,049 | 8 | 965,060 | 9 | |||||||||||||||||||||||||
Total low cost deposits | 10,766,565 | 84 | 9,649,728 | 84 | 9,699,177 | 85 | 9,790,224 | 85 | 9,512,750 | 84 | |||||||||||||||||||||||||
Certificates of deposit: | |||||||||||||||||||||||||||||||||||
Certificates of deposit | 1,257,959 | 10 | 1,237,198 | 11 | 1,237,971 | 11 | 1,245,947 | 11 | 1,304,516 | 12 | |||||||||||||||||||||||||
Brokered certificates of deposit | 702,030 | 6 | 598,702 | 5 | 534,910 | 4 | 492,839 | 4 | 427,649 | 4 | |||||||||||||||||||||||||
Total certificates of deposit | 1,959,989 | 16 | 1,835,900 | 16 | 1,772,881 | 15 | 1,738,786 | 15 | 1,732,165 | 16 | |||||||||||||||||||||||||
Total deposits | $ | 12,726,554 | 100 | % | $ | 11,485,628 | 100 | % | $ | 11,472,058 | 100 | % | $ | 11,529,010 | 100 | % | $ | 11,244,915 | 100 | % | |||||||||||||||
Change from prior quarter | +10.8 | % | +0.1 | % | -0.5 | % | +2.5 | % | +3.2 | % |
9/30/2016 | 6/30/2016 | 3/31/2016 | 12/31/2015 | 9/30/2015 | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and due from banks | $ | 351,009 | $ | 303,037 | $ | 271,732 | $ | 307,869 | $ | 234,220 | ||||||||||
Interest earning deposits with banks | 125,250 | 123,086 | 113,785 | 73,572 | 66,025 | |||||||||||||||
Total cash and cash equivalents | 476,259 | 426,123 | 385,517 | 381,441 | 300,245 | |||||||||||||||
Investment securities: | ||||||||||||||||||||
Securities available for sale, at fair value | 1,859,356 | 1,477,395 | 1,532,844 | 1,585,023 | 1,551,238 | |||||||||||||||
Securities held to maturity, at amortized cost | 1,115,262 | 1,151,415 | 1,191,910 | 1,230,810 | 1,224,852 | |||||||||||||||
Non-marketable securities - FHLB and FRB Stock | 146,209 | 130,232 | 121,750 | 114,233 | 91,400 | |||||||||||||||
Total investment securities | 3,120,827 | 2,759,042 | 2,846,504 | 2,930,066 | 2,867,490 | |||||||||||||||
Loans held for sale | 899,412 | 843,379 | 632,196 | 744,727 | 676,020 | |||||||||||||||
Loans: | ||||||||||||||||||||
Total loans, excluding purchased credit-impaired loans | 12,379,358 | 10,061,076 | 9,820,903 | 9,652,592 | 9,233,488 | |||||||||||||||
Purchased credit-impaired loans | 161,338 | 136,811 | 140,445 | 141,406 | 155,693 | |||||||||||||||
Total loans | 12,540,696 | 10,197,887 | 9,961,348 | 9,793,998 | 9,389,181 | |||||||||||||||
Less: Allowance for loan and lease losses | 139,528 | 135,614 | 134,493 | 128,140 | 124,626 | |||||||||||||||
Net loans | 12,401,168 | 10,062,273 | 9,826,855 | 9,665,858 | 9,264,555 | |||||||||||||||
Lease investments, net | 277,647 | 233,320 | 216,046 | 211,687 | 184,223 | |||||||||||||||
Premises and equipment, net | 283,112 | 243,319 | 238,578 | 236,013 | 234,115 | |||||||||||||||
Cash surrender value of life insurance | 199,628 | 138,657 | 137,807 | 136,953 | 136,089 | |||||||||||||||
Goodwill | 993,799 | 725,039 | 725,068 | 725,070 | 711,521 | |||||||||||||||
Other intangibles | 65,395 | 41,569 | 43,186 | 44,812 | 37,520 | |||||||||||||||
Mortgage servicing rights, at fair value | 154,730 | 134,969 | 145,800 | 168,162 | 148,097 | |||||||||||||||
Other real estate owned, net | 33,105 | 27,663 | 28,309 | 31,553 | 29,587 | |||||||||||||||
Other real estate owned related to FDIC transactions | 5,177 | 8,356 | 10,397 | 10,717 | 13,825 | |||||||||||||||
Other assets | 431,623 | 352,081 | 339,390 | 297,948 | 346,814 | |||||||||||||||
Total assets | $ | 19,341,882 | $ | 15,995,790 | $ | 15,575,653 | $ | 15,585,007 | $ | 14,950,101 | ||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||
Liabilities | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Noninterest bearing | $ | 6,410,334 | $ | 4,775,364 | $ | 4,667,410 | $ | 4,627,184 | $ | 4,434,067 | ||||||||||
Interest bearing | 7,868,932 | 6,660,732 | 6,866,416 | 6,878,031 | 6,820,511 | |||||||||||||||
Total deposits | 14,279,266 | 11,436,096 | 11,533,826 | 11,505,215 | 11,254,578 | |||||||||||||||
Short-term borrowings | 1,496,319 | 1,246,994 | 884,101 | 1,005,737 | 940,529 | |||||||||||||||
Long-term borrowings | 311,645 | 518,545 | 439,615 | 400,274 | 95,175 | |||||||||||||||
Junior subordinated notes issued to capital trusts | 209,159 | 185,925 | 185,820 | 186,164 | 186,068 | |||||||||||||||
Accrued expenses and other liabilities | 482,085 | 451,695 | 409,406 | 400,333 | 410,523 | |||||||||||||||
Total liabilities | 16,778,474 | 13,839,255 | 13,452,768 | 13,497,723 | 12,886,873 | |||||||||||||||
Stockholders' Equity | ||||||||||||||||||||
Preferred stock | 116,507 | 115,280 | 115,280 | 115,280 | 115,280 | |||||||||||||||
Common stock | 855 | 757 | 756 | 756 | 756 | |||||||||||||||
Additional paid-in capital | 1,674,341 | 1,288,777 | 1,284,438 | 1,280,870 | 1,277,348 | |||||||||||||||
Retained earnings | 809,769 | 783,468 | 756,272 | 731,812 | 702,789 | |||||||||||||||
Accumulated other comprehensive income | 23,763 | 28,731 | 24,687 | 15,777 | 20,968 | |||||||||||||||
Treasury stock | (62,084 | ) | (60,732 | ) | (59,863 | ) | (58,504 | ) | (55,258 | ) | ||||||||||
Controlling interest stockholders' equity | 2,563,151 | 2,156,281 | 2,121,570 | 2,085,991 | 2,061,883 | |||||||||||||||
Noncontrolling interest | 257 | 254 | 1,315 | 1,293 | 1,345 | |||||||||||||||
Total stockholders' equity | 2,563,408 | 2,156,535 | 2,122,885 | 2,087,284 | 2,063,228 | |||||||||||||||
Total liabilities and stockholders' equity | $ | 19,341,882 | $ | 15,995,790 | $ | 15,575,653 | $ | 15,585,007 | $ | 14,950,101 |
Nine Months Ended | |||||||||||||||||||||||||||||
September 30, | |||||||||||||||||||||||||||||
(Dollars in thousands, except per share data) | 3Q16 | 2Q16 | 1Q16 | 4Q15 | 3Q15 | 2016 | 2015 | ||||||||||||||||||||||
Interest income: | |||||||||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||
Taxable | $ | 118,675 | $ | 110,231 | $ | 104,923 | $ | 106,137 | $ | 100,573 | $ | 333,829 | $ | 298,187 | |||||||||||||||
Nontaxable | 2,846 | 2,741 | 2,586 | 2,602 | 2,283 | 8,173 | 6,716 | ||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||||||
Taxable | 8,844 | 7,799 | 9,566 | 9,708 | 9,655 | 26,209 | 29,591 | ||||||||||||||||||||||
Nontaxable | 10,382 | 10,644 | 10,776 | 10,969 | 10,752 | 31,802 | 30,005 | ||||||||||||||||||||||
Federal funds sold | — | — | — | 1 | — | — | — | ||||||||||||||||||||||
Other interest earning accounts | 164 | 125 | 141 | 110 | 89 | 430 | 208 | ||||||||||||||||||||||
Total interest income | 140,911 | 131,540 | 127,992 | 129,527 | 123,352 | 400,443 | 364,707 | ||||||||||||||||||||||
Interest expense: | |||||||||||||||||||||||||||||
Deposits | 6,681 | 5,952 | 5,622 | 5,357 | 5,102 | 18,255 | 14,301 | ||||||||||||||||||||||
Short-term borrowings | 1,092 | 910 | 721 | 385 | 395 | 2,723 | 1,027 | ||||||||||||||||||||||
Long-term borrowings and junior subordinated notes | 2,367 | 2,076 | 2,345 | 2,016 | 1,886 | 6,788 | 5,542 | ||||||||||||||||||||||
Total interest expense | 10,140 | 8,938 | 8,688 | 7,758 | 7,383 | 27,766 | 20,870 | ||||||||||||||||||||||
Net interest income | 130,771 | 122,602 | 119,304 | 121,769 | 115,969 | 372,677 | 343,837 | ||||||||||||||||||||||
Provision for credit losses | 6,549 | 2,829 | 7,563 | 6,758 | 5,358 | 16,941 | 14,628 | ||||||||||||||||||||||
Net interest income after provision for credit losses | 124,222 | 119,773 | 111,741 | 115,011 | 110,611 | 355,736 | 329,209 | ||||||||||||||||||||||
Non-interest income: | |||||||||||||||||||||||||||||
Mortgage banking revenue | 49,095 | 39,615 | 27,482 | 26,542 | 30,692 | 116,192 | 90,884 | ||||||||||||||||||||||
Lease financing revenue, net | 18,864 | 15,708 | 19,046 | 15,937 | 20,000 | 53,618 | 60,644 | ||||||||||||||||||||||
Commercial deposit and treasury management fees | 12,957 | 11,548 | 11,878 | 11,711 | 11,472 | 36,383 | 33,572 | ||||||||||||||||||||||
Trust and asset management fees | 8,244 | 8,236 | 7,950 | 6,077 | 6,002 | 24,430 | 17,468 | ||||||||||||||||||||||
Card fees | 4,161 | 4,045 | 3,525 | 3,651 | 3,335 | 11,731 | 11,671 | ||||||||||||||||||||||
Capital markets and international banking service fees | 3,313 | 2,771 | 3,227 | 2,355 | 2,357 | 9,311 | 5,793 | ||||||||||||||||||||||
Consumer and other deposit service fees | 3,559 | 3,161 | 3,025 | 3,440 | 3,499 | 9,745 | 9,842 | ||||||||||||||||||||||
Brokerage fees | 1,294 | 1,315 | 1,158 | 1,252 | 1,281 | 3,767 | 4,502 | ||||||||||||||||||||||
Loan service fees | 1,792 | 1,961 | 1,752 | 1,890 | 1,531 | 5,505 | 4,369 | ||||||||||||||||||||||
Increase in cash surrender value of life insurance | 1,055 | 850 | 854 | 864 | 852 | 2,759 | 2,527 | ||||||||||||||||||||||
Net gain (loss) on investment securities | — | 269 | — | (3 | ) | 371 | 269 | (173 | ) | ||||||||||||||||||||
Net gain (loss) on sale of assets | 5 | (2 | ) | (48 | ) | — | 1 | (45 | ) | (2 | ) | ||||||||||||||||||
Other operating income | 4,048 | 2,523 | 1,844 | 1,909 | 858 | 8,415 | 5,371 | ||||||||||||||||||||||
Total non-interest income | 108,387 | 92,000 | 81,693 | 75,625 | 82,251 | 282,080 | 246,468 | ||||||||||||||||||||||
Non-interest expense: | |||||||||||||||||||||||||||||
Salaries and employee benefits expense | 111,478 | 95,004 | 85,591 | 84,709 | 87,891 | 292,073 | 258,822 | ||||||||||||||||||||||
Occupancy and equipment expense | 14,766 | 13,415 | 13,260 | 12,935 | 12,458 | 41,441 | 37,575 | ||||||||||||||||||||||
Computer services and telecommunication expense | 12,836 | 9,777 | 9,055 | 8,445 | 8,567 | 31,668 | 26,008 | ||||||||||||||||||||||
Advertising and marketing expense | 3,084 | 2,964 | 2,878 | 2,551 | 2,578 | 8,926 | 7,521 | ||||||||||||||||||||||
Professional and legal expense | 4,460 | 3,321 | 2,589 | 4,169 | 1,801 | 10,370 | 6,884 | ||||||||||||||||||||||
Other intangible amortization expense | 1,674 | 1,617 | 1,626 | 1,546 | 1,542 | 4,917 | 4,569 | ||||||||||||||||||||||
Branch exit and facilities impairment charges | (2,908 | ) | 155 | 44 | 616 | 70 | (2,709 | ) | 7,899 | ||||||||||||||||||||
Net (gain) loss recognized on other real estate owned and other expense | (721 | ) | 258 | (346 | ) | (729 | ) | 577 | (809 | ) | 2,197 | ||||||||||||||||||
Prepayment fees on interest bearing liabilities | — | — | — | — | — | — | 85 | ||||||||||||||||||||||
Other operating expenses | 25,716 | 21,395 | 21,103 | 12,989 | 18,782 | 68,214 | 55,363 | ||||||||||||||||||||||
Total non-interest expense | 170,385 | 147,906 | 135,800 | 127,231 | 134,266 | 454,091 | 406,923 | ||||||||||||||||||||||
Income before income taxes | 62,224 | 63,867 | 57,634 | 63,405 | 58,596 | 183,725 | 168,754 | ||||||||||||||||||||||
Income tax expense | 17,805 | 20,455 | 18,520 | 19,798 | 18,318 | 56,780 | 53,413 | ||||||||||||||||||||||
Net income | 44,419 | 43,412 | 39,114 | 43,607 | 40,278 | 126,945 | 115,341 | ||||||||||||||||||||||
Dividends on preferred shares | 2,004 | 2,000 | 2,000 | 2,000 | 2,000 | 6,004 | 6,000 | ||||||||||||||||||||||
Net income available to common stockholders | $ | 42,415 | $ | 41,412 | $ | 37,114 | $ | 41,607 | $ | 38,278 | $ | 120,941 | $ | 109,341 |
Nine Months Ended | |||||||||||||||||||||||||||||
September 30, | |||||||||||||||||||||||||||||
3Q16 | 2Q16 | 1Q16 | 4Q15 | 3Q15 | 2016 | 2015 | |||||||||||||||||||||||
Common share data: | |||||||||||||||||||||||||||||
Basic earnings per common share | $ | 0.55 | $ | 0.56 | $ | 0.51 | $ | 0.57 | $ | 0.52 | $ | 1.62 | $ | 1.47 | |||||||||||||||
Diluted earnings per common share | 0.54 | 0.56 | 0.50 | 0.56 | 0.51 | 1.60 | 1.45 | ||||||||||||||||||||||
Weighted average common shares outstanding for basic earnings per common share | 77,506,885 | 73,475,258 | 73,330,731 | 73,296,602 | 74,297,281 | 74,780,943 | 74,478,164 | ||||||||||||||||||||||
Weighted average common shares outstanding for diluted earnings per common share | 78,683,170 | 74,180,374 | 73,966,935 | 73,953,165 | 75,029,827 | 75,727,580 | 75,154,585 | ||||||||||||||||||||||
Common shares outstanding (at end of period) | 83,555,257 | 73,740,348 | 73,639,487 | 73,678,329 | 73,776,196 | 83,555,257 | 73,776,196 |
Selected Financial Data: | |||||||||||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||||||||
September 30, | |||||||||||||||||||||||||||||
3Q16 | 2Q16 | 1Q16 | 4Q15 | 3Q15 | 2016 | 2015 | |||||||||||||||||||||||
Performance Ratios: | |||||||||||||||||||||||||||||
Annualized return on average assets | 1.02 | % | 1.11 | % | 1.02 | % | 1.13 | % | 1.06 | % | 1.05 | % | 1.05 | % | |||||||||||||||
Annualized operating return on average assets (1) | 1.20 | 1.15 | 1.09 | 1.06 | 1.06 | 1.15 | 1.10 | ||||||||||||||||||||||
Annualized return on average common equity | 7.67 | 8.27 | 7.52 | 8.48 | 7.75 | 7.81 | 7.52 | ||||||||||||||||||||||
Annualized operating return on average common equity (1) | 9.02 | 8.56 | 8.08 | 7.86 | 7.75 | 8.57 | 7.94 | ||||||||||||||||||||||
Annualized cash return on average tangible common equity (2) | 12.99 | 13.53 | 12.47 | 13.97 | 12.74 | 13.00 | 12.43 | ||||||||||||||||||||||
Annualized cash operating return on average tangible common equity (3) | 15.23 | 13.99 | 13.37 | 12.97 | 12.74 | 14.23 | 13.10 | ||||||||||||||||||||||
Net interest rate spread | 3.50 | 3.64 | 3.63 | 3.72 | 3.60 | 3.59 | 3.70 | ||||||||||||||||||||||
Cost of funds (4) | 0.28 | 0.27 | 0.27 | 0.24 | 0.23 | 0.27 | 0.23 | ||||||||||||||||||||||
Efficiency ratio (5) | 62.69 | 65.32 | 63.49 | 63.95 | 65.35 | 63.80 | 64.97 | ||||||||||||||||||||||
Annualized net non-interest expense to average assets (6) | 1.06 | 1.35 | 1.31 | 1.44 | 1.36 | 1.23 | 1.36 | ||||||||||||||||||||||
Core non-interest income to revenues (7) | 43.98 | 41.40 | 39.38 | 36.91 | 40.35 | 41.72 | 40.60 | ||||||||||||||||||||||
Net interest margin | 3.49 | 3.60 | 3.57 | 3.64 | 3.52 | 3.55 | 3.62 | ||||||||||||||||||||||
Tax equivalent effect | 0.19 | 0.21 | 0.22 | 0.22 | 0.21 | 0.21 | 0.21 | ||||||||||||||||||||||
Net interest margin - fully tax equivalent basis (8) | 3.68 | 3.81 | 3.79 | 3.86 | 3.73 | 3.76 | 3.83 | ||||||||||||||||||||||
Loans to deposits | 87.82 | 89.17 | 86.37 | 85.13 | 83.43 | 87.82 | 83.43 | ||||||||||||||||||||||
Asset Quality Ratios: | |||||||||||||||||||||||||||||
Non-performing loans (9) to total loans | 0.43 | % | 0.73 | % | 0.95 | % | 1.07 | % | 1.03 | % | 0.43 | % | 1.03 | % | |||||||||||||||
Non-performing assets (9) to total assets | 0.45 | 0.64 | 0.79 | 0.87 | 0.85 | 0.45 | 0.85 | ||||||||||||||||||||||
Allowance for loan and lease losses to non-performing loans (9) | 258.82 | 181.46 | 142.00 | 122.43 | 129.04 | 258.82 | 129.04 | ||||||||||||||||||||||
Allowance for loan and lease losses to total loans | 1.11 | 1.33 | 1.35 | 1.31 | 1.33 | 1.11 | 1.33 | ||||||||||||||||||||||
Net loan charge-offs to average loans, excluding loans held for sale (annualized) | 0.09 | 0.09 | 0.06 | 0.14 | 0.06 | 0.08 | 0.01 | ||||||||||||||||||||||
Capital Ratios: | |||||||||||||||||||||||||||||
Tangible equity to tangible assets (10) | 8.34 | % | 9.21 | % | 9.24 | % | 8.99 | % | 9.34 | % | 8.34 | % | 9.34 | % | |||||||||||||||
Tangible common equity to tangible assets (11) | 7.71 | 8.46 | 8.46 | 8.21 | 8.53 | 7.71 | 8.53 | ||||||||||||||||||||||
Tangible common equity to risk weighted assets (12) | 8.82 | 9.75 | 9.54 | 9.34 | 9.69 | 8.82 | 9.69 | ||||||||||||||||||||||
Total capital (to risk-weighted assets) (13) | 11.65 | 12.81 | 12.65 | 12.54 | 12.94 | 11.65 | 12.94 | ||||||||||||||||||||||
Tier 1 capital (to risk-weighted assets) (13) | 9.39 | 11.77 | 11.60 | 11.54 | 11.92 | 9.39 | 11.92 | ||||||||||||||||||||||
Common equity tier 1 capital (to risk-weighted assets) (13) | 8.70 | 9.52 | 9.33 | 9.27 | 9.56 | 8.70 | 9.56 | ||||||||||||||||||||||
Tier 1 capital (to average assets) (13) | 9.29 | 10.41 | 10.38 | 10.40 | 10.43 | 9.29 | 10.43 | ||||||||||||||||||||||
Per Share Data: | |||||||||||||||||||||||||||||
Book value per common share (14) | $ | 29.28 | $ | 27.68 | $ | 27.26 | $ | 26.77 | $ | 26.40 | $ | 29.28 | $ | 26.40 | |||||||||||||||
Less: goodwill and other intangible assets, net of tax benefit, per common share | 12.40 | 10.20 | 10.22 | 10.24 | 9.97 | 12.40 | 9.97 | ||||||||||||||||||||||
Tangible book value per common share (15) | $ | 16.88 | $ | 17.48 | $ | 17.04 | $ | 16.53 | $ | 16.43 | $ | 16.88 | $ | 16.43 | |||||||||||||||
Cash dividends per common share | $ | 0.19 | $ | 0.19 | $ | 0.17 | $ | 0.17 | $ | 0.17 | $ | 0.55 | $ | 0.48 |
(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. |
9/30/2016 | 6/30/2016 | 3/31/2016 | 12/31/2015 | 9/30/2015 | ||||||||||||||||
Stockholders' equity - as reported | $ | 2,563,408 | $ | 2,156,535 | $ | 2,122,885 | $ | 2,087,284 | $ | 2,063,228 | ||||||||||
Less: goodwill | 993,799 | 725,039 | 725,068 | 725,070 | 711,521 | |||||||||||||||
Less: other intangible assets, net of tax benefit | 42,507 | 27,020 | 28,071 | 29,128 | 24,388 | |||||||||||||||
Tangible equity | $ | 1,527,102 | $ | 1,404,476 | $ | 1,369,746 | $ | 1,333,086 | $ | 1,327,319 |
9/30/2016 | 6/30/2016 | 3/31/2016 | 12/31/2015 | 9/30/2015 | ||||||||||||||||
Total assets - as reported | $ | 19,341,882 | $ | 15,995,790 | $ | 15,575,653 | $ | 15,585,007 | $ | 14,950,101 | ||||||||||
Less: goodwill | 993,799 | 725,039 | 725,068 | 725,070 | 711,521 | |||||||||||||||
Less: other intangible assets, net of tax benefit | 42,507 | 27,020 | 28,071 | 29,128 | 24,388 | |||||||||||||||
Tangible assets | $ | 18,305,576 | $ | 15,243,731 | $ | 14,822,514 | $ | 14,830,809 | $ | 14,214,192 |
9/30/2016 | 6/30/2016 | 3/31/2016 | 12/31/2015 | 9/30/2015 | ||||||||||||||||
Common stockholders' equity - as reported | $ | 2,446,901 | $ | 2,041,255 | $ | 2,007,605 | $ | 1,972,004 | $ | 1,947,948 | ||||||||||
Less: goodwill | 993,799 | 725,039 | 725,068 | 725,070 | 711,521 | |||||||||||||||
Less: other intangible assets, net of tax benefit | 42,507 | 27,020 | 28,071 | 29,128 | 24,388 | |||||||||||||||
Tangible common equity | $ | 1,410,595 | $ | 1,289,196 | $ | 1,254,466 | $ | 1,217,806 | $ | 1,212,039 |
Nine Months Ended | |||||||||||||||||||||||||||||
September 30, | |||||||||||||||||||||||||||||
3Q16 | 2Q16 | 1Q16 | 4Q15 | 3Q15 | 2016 | 2015 | |||||||||||||||||||||||
Average common stockholders' equity - as reported | $ | 2,201,095 | $ | 2,014,822 | $ | 1,984,379 | $ | 1,945,772 | $ | 1,958,947 | $ | 2,067,257 | $ | 1,942,911 | |||||||||||||||
Less: average goodwill | 835,894 | 725,011 | 725,070 | 711,669 | 711,521 | 762,262 | 711,521 | ||||||||||||||||||||||
Less: average other intangible assets, net of tax benefit | 32,744 | 27,437 | 28,511 | 23,826 | 23,900 | 29,576 | 23,715 | ||||||||||||||||||||||
Average tangible common equity | $ | 1,332,457 | $ | 1,262,374 | $ | 1,230,798 | $ | 1,210,277 | $ | 1,223,526 | $ | 1,275,419 | $ | 1,207,675 |
Nine Months Ended | |||||||||||||||||||||||||||||
September 30, | |||||||||||||||||||||||||||||
3Q16 | 2Q16 | 1Q16 | 4Q15 | 3Q15 | 2016 | 2015 | |||||||||||||||||||||||
Net income available to common stockholders - as reported | $ | 42,415 | $ | 41,412 | $ | 37,114 | $ | 41,607 | $ | 38,278 | $ | 120,941 | $ | 109,341 | |||||||||||||||
Add: other intangible amortization expense, net of tax benefit | 1,088 | 1,051 | 1,057 | 1,005 | 1,002 | 3,196 | 2,970 | ||||||||||||||||||||||
Net cash flow available to common stockholders | $ | 43,503 | $ | 42,463 | $ | 38,171 | $ | 42,612 | $ | 39,280 | $ | 124,137 | $ | 112,311 |
Nine Months Ended | |||||||||||||||||||||||||||||
September 30, | |||||||||||||||||||||||||||||
3Q16 | 2Q16 | 1Q16 | 4Q15 | 3Q15 | 2016 | 2015 | |||||||||||||||||||||||
Net income - as reported | $ | 44,419 | $ | 43,412 | $ | 39,114 | $ | 43,607 | $ | 40,278 | $ | 126,945 | $ | 115,341 | |||||||||||||||
Less non-core items: | |||||||||||||||||||||||||||||
Net gain (loss) on investment securities | — | 269 | — | (3 | ) | 371 | 269 | (173 | ) | ||||||||||||||||||||
Net (loss) gain on sale of other assets | 5 | (2 | ) | (48 | ) | — | 1 | (45 | ) | (2 | ) | ||||||||||||||||||
Increase (decrease) in market value of assets held in trust for deferred compensation - other operating income | 711 | 480 | 8 | 565 | (872 | ) | 1,199 | (559 | ) | ||||||||||||||||||||
Merger related and repositioning expenses | (11,368 | ) | (2,566 | ) | (3,287 | ) | 4,186 | (389 | ) | (17,221 | ) | (9,622 | ) | ||||||||||||||||
Branch exit and facilities impairment charges | — | (155 | ) | — | — | — | (155 | ) | (70 | ) | |||||||||||||||||||
Prepayment fees on interest bearing liabilities | — | — | — | — | — | — | (85 | ) | |||||||||||||||||||||
Contribution to MB Financial Charitable Foundation | (4,000 | ) | — | — | — | — | (4,000 | ) | — | ||||||||||||||||||||
Increase (decrease) in market value of assets held in trust for deferred compensation - other operating expense | (711 | ) | (480 | ) | (8 | ) | (565 | ) | 872 | (1,199 | ) | 559 | |||||||||||||||||
Total non-core items | (15,363 | ) | (2,454 | ) | (3,335 | ) | 4,183 | (17 | ) | (21,152 | ) | (9,952 | ) | ||||||||||||||||
Income tax expense on non-core items | (6,074 | ) | (1,003 | ) | (577 | ) | 1,140 | (6 | ) | (7,654 | ) | (3,949 | ) | ||||||||||||||||
Income tax benefit resulting from adoption of new stock-based compensation guidance | (1,793 | ) | — | — | — | — | (1,793 | ) | — | ||||||||||||||||||||
Non-core items, net of tax | (7,496 | ) | (1,451 | ) | (2,758 | ) | 3,043 | (11 | ) | (11,705 | ) | (6,003 | ) | ||||||||||||||||
Operating earnings | 51,915 | 44,863 | 41,872 | 40,564 | 40,289 | 138,650 | 121,344 | ||||||||||||||||||||||
Dividends on preferred shares | 2,004 | 2,000 | 2,000 | 2,000 | 2,000 | 6,004 | 6,000 | ||||||||||||||||||||||
Operating earnings available to common stockholders | $ | 49,911 | $ | 42,863 | $ | 39,872 | $ | 38,564 | $ | 38,289 | $ | 132,646 | $ | 115,344 | |||||||||||||||
Diluted operating earnings per common share | $ | 0.63 | $ | 0.58 | $ | 0.54 | $ | 0.52 | $ | 0.51 | $ | 1.75 | $ | 1.53 | |||||||||||||||
Weighted average common shares outstanding for diluted operating earnings per common share | 78,683,170 | 74,180,374 | 73,966,935 | 73,953,165 | 75,029,827 | 75,727,580 | 75,154,585 |
Nine Months Ended | |||||||||||||||||||||||||||||
September 30, | |||||||||||||||||||||||||||||
3Q16 | 2Q16 | 1Q16 | 4Q15 | 3Q15 | 2016 | 2015 | |||||||||||||||||||||||
Non-interest expense | $ | 170,385 | $ | 147,906 | $ | 135,800 | $ | 127,231 | $ | 134,266 | $ | 454,091 | $ | 406,923 | |||||||||||||||
Less merger related and repositioning expenses | 11,368 | 2,566 | 3,287 | (4,186 | ) | 389 | 17,221 | 9,622 | |||||||||||||||||||||
Less prepayment fees on interest bearing liabilities | — | — | — | — | — | — | 85 | ||||||||||||||||||||||
Less branch exit and facilities impairment charges | — | 155 | — | — | — | 155 | 70 | ||||||||||||||||||||||
Less contribution to MB Financial Charitable Foundation | 4,000 | — | — | — | — | 4,000 | — | ||||||||||||||||||||||
Less increase (decrease) in market value of assets held in trust for deferred compensation | 711 | 480 | 8 | 565 | (872 | ) | 1,199 | (559 | ) | ||||||||||||||||||||
Non-interest expense - as adjusted | $ | 154,306 | $ | 144,705 | $ | 132,505 | $ | 130,852 | $ | 134,749 | $ | 431,516 | $ | 397,705 | |||||||||||||||
Net interest income | $ | 130,771 | $ | 122,602 | $ | 119,304 | $ | 121,769 | $ | 115,969 | $ | 372,677 | $ | 343,837 | |||||||||||||||
Tax equivalent adjustment | 7,122 | 7,208 | 7,195 | 7,307 | 7,019 | 21,525 | 19,773 | ||||||||||||||||||||||
Net interest income on a fully tax equivalent basis | 137,893 | 129,810 | 126,499 | 129,076 | 122,988 | 394,202 | 363,610 | ||||||||||||||||||||||
Plus non-interest income | 108,387 | 92,000 | 81,693 | 75,625 | 82,251 | 282,080 | 246,468 | ||||||||||||||||||||||
Plus tax equivalent adjustment on the increase in cash surrender value of life insurance | 568 | 458 | 460 | 465 | 459 | 1,486 | 1,361 | ||||||||||||||||||||||
Less net gain (loss) on investment securities | — | 269 | — | (3 | ) | 371 | 269 | (173 | ) | ||||||||||||||||||||
Less net gain (loss) on sale of assets | 5 | (2 | ) | (48 | ) | — | 1 | (45 | ) | (2 | ) | ||||||||||||||||||
Less increase (decrease) in market value of assets held in trust for deferred compensation | 711 | 480 | 8 | 565 | (872 | ) | 1,199 | (559 | ) | ||||||||||||||||||||
Net interest income plus non-interest income - as adjusted | $ | 246,132 | $ | 221,521 | $ | 208,692 | $ | 204,604 | $ | 206,198 | $ | 676,345 | $ | 612,173 | |||||||||||||||
Efficiency ratio | 62.69 | % | 65.32 | % | 63.49 | % | 63.95 | % | 65.35 | % | 63.80 | % | 64.97 | % | |||||||||||||||
Efficiency ratio (without adjustments) | 71.24 | % | 68.92 | % | 67.56 | % | 64.46 | % | 67.74 | % | 69.35 | % | 68.93 | % |
Nine Months Ended | |||||||||||||||||||||||||||||
September 30, | |||||||||||||||||||||||||||||
3Q16 | 2Q16 | 1Q16 | 4Q15 | 3Q15 | 2016 | 2015 | |||||||||||||||||||||||
Non-interest expense | $ | 170,385 | $ | 147,906 | $ | 135,800 | $ | 127,231 | $ | 134,266 | $ | 454,091 | $ | 406,923 | |||||||||||||||
Less merger related and repositioning expenses | 11,368 | 2,566 | 3,287 | (4,186 | ) | 389 | 17,221 | 9,622 | |||||||||||||||||||||
Less prepayment fees on interest bearing liabilities | — | — | — | — | — | — | 85 | ||||||||||||||||||||||
Less branch exit and facilities impairment charges | — | 155 | — | — | — | 155 | 70 | ||||||||||||||||||||||
Less contribution to MB Financial Charitable Foundation | 4,000 | — | — | — | — | 4,000 | — | ||||||||||||||||||||||
Less increase (decrease) in market value of assets held in trust for deferred compensation | 711 | 480 | 8 | 565 | (872 | ) | 1,199 | (559 | ) | ||||||||||||||||||||
Non-interest expense - as adjusted | 154,306 | 144,705 | 132,505 | 130,852 | 134,749 | 431,516 | 397,705 | ||||||||||||||||||||||
Non-interest income | 108,387 | 92,000 | 81,693 | 75,625 | 82,251 | 282,080 | 246,468 | ||||||||||||||||||||||
Less net gain (loss) on investment securities | — | 269 | — | (3 | ) | 371 | 269 | (173 | ) | ||||||||||||||||||||
Less net gain (loss) on sale of assets | 5 | (2 | ) | (48 | ) | — | 1 | (45 | ) | (2 | ) | ||||||||||||||||||
Less increase (decrease) in market value of assets held in trust for deferred compensation | 711 | 480 | 8 | 565 | (872 | ) | 1,199 | (559 | ) | ||||||||||||||||||||
Non-interest income - as adjusted | 107,671 | 91,253 | 81,733 | 75,063 | 82,751 | 280,657 | 247,202 | ||||||||||||||||||||||
Less tax equivalent adjustment on the increase in cash surrender value of life insurance | 568 | 458 | 460 | 465 | 459 | 1,486 | 1,361 | ||||||||||||||||||||||
Net non-interest expense | $ | 46,067 | $ | 52,994 | $ | 50,312 | $ | 55,324 | $ | 51,539 | $ | 149,373 | $ | 149,142 | |||||||||||||||
Average assets | $ | 17,248,431 | $ | 15,740,658 | $ | 15,487,565 | $ | 15,244,633 | $ | 15,059,429 | $ | 16,162,861 | $ | 14,687,441 | |||||||||||||||
Annualized net non-interest expense to average assets | 1.06 | % | 1.35 | % | 1.31 | % | 1.44 | % | 1.36 | % | 1.23 | % | 1.36 | % | |||||||||||||||
Annualized net non-interest expense to average assets (without adjustments) | 1.43 | % | 1.43 | % | 1.41 | % | 1.34 | % | 1.37 | % | 1.42 | % | 1.46 | % |
Nine Months Ended | |||||||||||||||||||||||||||||
September 30, | |||||||||||||||||||||||||||||
3Q16 | 2Q16 | 1Q16 | 4Q15 | 3Q15 | 2016 | 2015 | |||||||||||||||||||||||
Non-interest income | $ | 108,387 | $ | 92,000 | $ | 81,693 | $ | 75,625 | $ | 82,251 | $ | 282,080 | $ | 246,468 | |||||||||||||||
Plus tax equivalent adjustment on the increase in cash surrender value of life insurance | 568 | 458 | 460 | 465 | 459 | 1,486 | 1,361 | ||||||||||||||||||||||
Less net gain (loss) on investment securities | — | 269 | — | (3 | ) | 371 | 269 | (173 | ) | ||||||||||||||||||||
Less net gain (loss) on sale of assets | 5 | (2 | ) | (48 | ) | — | 1 | (45 | ) | (2 | ) | ||||||||||||||||||
Less increase (decrease) in market value of assets held in trust for deferred compensation | 711 | 480 | 8 | 565 | (872 | ) | 1,199 | (559 | ) | ||||||||||||||||||||
Non-interest income - as adjusted | $ | 108,239 | $ | 91,711 | $ | 82,193 | $ | 75,528 | $ | 83,210 | $ | 282,143 | $ | 248,563 | |||||||||||||||
Net interest income | $ | 130,771 | $ | 122,602 | $ | 119,304 | $ | 121,769 | $ | 115,969 | $ | 372,677 | $ | 343,837 | |||||||||||||||
Tax equivalent adjustment | 7,122 | 7,208 | 7,195 | 7,307 | 7,019 | 21,525 | 19,773 | ||||||||||||||||||||||
Net interest income on a fully tax equivalent basis | 137,893 | 129,810 | 126,499 | 129,076 | 122,988 | 394,202 | 363,610 | ||||||||||||||||||||||
Plus non-interest income | 108,387 | 92,000 | 81,693 | 75,625 | 82,251 | 282,080 | 246,468 | ||||||||||||||||||||||
Plus tax equivalent adjustment on the increase in cash surrender value of life insurance | 568 | 458 | 460 | 465 | 459 | 1,486 | 1,361 | ||||||||||||||||||||||
Less net gain (loss) on investment securities | — | 269 | — | (3 | ) | 371 | 269 | (173 | ) | ||||||||||||||||||||
Less net gain (loss) on sale of assets | 5 | (2 | ) | (48 | ) | — | 1 | (45 | ) | (2 | ) | ||||||||||||||||||
Less increase (decrease) in market value of assets held in trust for deferred compensation | 711 | 480 | 8 | 565 | (872 | ) | 1,199 | (559 | ) | ||||||||||||||||||||
Total revenue - as adjusted and on a fully tax equivalent basis | $ | 246,132 | $ | 221,521 | $ | 208,692 | $ | 204,604 | $ | 206,198 | $ | 676,345 | $ | 612,173 | |||||||||||||||
Total revenue - unadjusted | $ | 239,158 | $ | 214,602 | $ | 200,997 | $ | 197,394 | $ | 198,220 | $ | 654,757 | $ | 590,305 | |||||||||||||||
Core non-interest income to revenues ratio | 43.98 | % | 41.40 | % | 39.38 | % | 36.91 | % | 40.35 | % | 41.72 | % | 40.60 | % | |||||||||||||||
Non-interest income to revenues ratio (without adjustments) | 45.32 | % | 42.87 | % | 40.64 | % | 38.31 | % | 41.49 | % | 43.08 | % | 41.75 | % |
3Q16 | 2Q16 | 3Q15 | ||||||||||||||||||||||||||||||||
Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | ||||||||||||||||||||||||||
Interest Earning Assets: | ||||||||||||||||||||||||||||||||||
Loans held for sale | $ | 835,953 | $ | 7,074 | 3.38 | % | $ | 727,631 | $ | 6,311 | 3.47 | % | $ | 841,663 | $ | 7,904 | 3.76 | % | ||||||||||||||||
Loans (1) (2) (3): | ||||||||||||||||||||||||||||||||||
Commercial-related credits: | ||||||||||||||||||||||||||||||||||
Commercial | 3,850,588 | 41,095 | 4.18 | 3,522,641 | 39,002 | 4.38 | 3,372,279 | 34,481 | 4.00 | |||||||||||||||||||||||||
Commercial loans collateralized by assignment of lease payments (lease loans) | 1,825,505 | 16,876 | 3.70 | 1,777,763 | 16,647 | 3.75 | 1,674,939 | 15,647 | 3.74 | |||||||||||||||||||||||||
Real estate commercial | 3,183,131 | 33,253 | 4.09 | 2,821,516 | 29,948 | 4.20 | 2,568,539 | 27,558 | 4.20 | |||||||||||||||||||||||||
Real estate construction | 397,480 | 3,921 | 3.86 | 351,079 | 3,436 | 3.87 | 210,506 | 2,431 | 4.52 | |||||||||||||||||||||||||
Total commercial-related credits | 9,256,704 | 95,145 | 4.02 | 8,472,999 | 89,033 | 4.16 | 7,826,263 | 80,117 | 4.01 | |||||||||||||||||||||||||
Other loans: | ||||||||||||||||||||||||||||||||||
Real estate residential | 862,393 | 7,121 | 3.30 | 710,384 | 6,064 | 3.41 | 566,115 | 5,152 | 3.64 | |||||||||||||||||||||||||
Home equity | 231,399 | 2,252 | 3.87 | 202,228 | 1,969 | 3.92 | 226,365 | 2,298 | 4.03 | |||||||||||||||||||||||||
Indirect | 507,772 | 5,838 | 4.57 | 462,053 | 5,333 | 4.64 | 325,323 | 4,017 | 4.90 | |||||||||||||||||||||||||
Consumer | 77,451 | 821 | 4.21 | 78,108 | 767 | 3.95 | 85,044 | 807 | 3.76 | |||||||||||||||||||||||||
Total other loans | 1,679,015 | 16,032 | 3.80 | 1,452,773 | 14,133 | 3.91 | 1,202,847 | 12,274 | 4.05 | |||||||||||||||||||||||||
Total loans, excluding purchased credit-impaired loans | 10,935,719 | 111,177 | 4.04 | 9,925,772 | 103,166 | 4.18 | 9,029,110 | 92,391 | 4.06 | |||||||||||||||||||||||||
Purchased credit-impaired loans | 135,548 | 4,802 | 14.09 | 136,415 | 4,972 | 14.66 | 156,309 | 3,791 | 9.62 | |||||||||||||||||||||||||
Total loans | 11,071,267 | 115,979 | 4.17 | 10,062,187 | 108,138 | 4.32 | 9,185,419 | 96,182 | 4.15 | |||||||||||||||||||||||||
Taxable investment securities | 1,592,547 | 8,844 | 2.22 | 1,466,915 | 7,799 | 2.13 | 1,543,434 | 9,655 | 2.50 | |||||||||||||||||||||||||
Investment securities exempt from federal income taxes (3) | 1,318,855 | 15,972 | 4.84 | 1,339,465 | 16,375 | 4.89 | 1,356,702 | 16,541 | 4.88 | |||||||||||||||||||||||||
Federal funds sold | 36 | 0 | 1.00 | 35 | 0 | 1.00 | 38 | 0 | 1.00 | |||||||||||||||||||||||||
Other interest earning deposits | 103,061 | 164 | 0.63 | 100,200 | 125 | 0.50 | 138,542 | 89 | 0.25 | |||||||||||||||||||||||||
Total interest earning assets | $ | 14,921,719 | $ | 148,033 | 3.95 | % | $ | 13,696,433 | $ | 138,748 | 4.07 | % | $ | 13,065,798 | $ | 130,371 | 3.96 | % | ||||||||||||||||
Non-interest earning assets | 2,326,712 | 2,044,225 | 1,993,631 | |||||||||||||||||||||||||||||||
Total assets | $ | 17,248,431 | $ | 15,740,658 | $ | 15,059,429 | ||||||||||||||||||||||||||||
Interest Bearing Liabilities: | ||||||||||||||||||||||||||||||||||
Core funding: | ||||||||||||||||||||||||||||||||||
Money market, NOW and interest bearing deposits | $ | 4,161,913 | $ | 2,299 | 0.22 | % | $ | 3,836,134 | $ | 2,049 | 0.21 | % | $ | 4,119,625 | $ | 1,832 | 0.18 | % | ||||||||||||||||
Savings deposits | 1,080,609 | 231 | 0.09 | 1,006,902 | 174 | 0.07 | 965,060 | 124 | 0.05 | |||||||||||||||||||||||||
Certificates of deposit | 1,257,959 | 1,633 | 0.52 | 1,237,198 | 1,474 | 0.48 | 1,304,516 | 1,450 | 0.44 | |||||||||||||||||||||||||
Customer repurchase agreements | 210,688 | 113 | 0.21 | 162,038 | 85 | 0.21 | 244,845 | 114 | 0.18 | |||||||||||||||||||||||||
Total core funding | 6,711,169 | 4,276 | 0.25 | 6,242,272 | 3,782 | 0.24 | 6,634,046 | 3,520 | 0.21 | |||||||||||||||||||||||||
Wholesale funding: | ||||||||||||||||||||||||||||||||||
Brokered certificates of deposit (includes fee expense) | 702,030 | 2,518 | 1.43 | 598,702 | 2,255 | 1.51 | 427,649 | 1,696 | 1.57 | |||||||||||||||||||||||||
Other borrowings | 1,533,344 | 3,346 | 0.85 | 1,573,083 | 2,901 | 0.73 | 1,117,166 | 2,167 | 0.76 | |||||||||||||||||||||||||
Total wholesale funding | 2,235,374 | 5,864 | 1.04 | 2,171,785 | 5,156 | 0.95 | 1,544,815 | 3,863 | 0.99 | |||||||||||||||||||||||||
Total interest bearing liabilities | $ | 8,946,543 | $ | 10,140 | 0.45 | % | $ | 8,414,057 | $ | 8,938 | 0.43 | % | $ | 8,178,861 | $ | 7,383 | 0.36 | % | ||||||||||||||||
Non-interest bearing deposits | 5,524,043 | 4,806,692 | 4,428,065 | |||||||||||||||||||||||||||||||
Other non-interest bearing liabilities | 461,243 | 389,807 | 378,276 | |||||||||||||||||||||||||||||||
Stockholders' equity | 2,316,602 | 2,130,102 | 2,074,227 | |||||||||||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 17,248,431 | $ | 15,740,658 | $ | 15,059,429 | ||||||||||||||||||||||||||||
Net interest income/interest rate spread (4) | $ | 137,893 | 3.50 | % | $ | 129,810 | 3.64 | % | $ | 122,988 | 3.60 | % | ||||||||||||||||||||||
Taxable equivalent adjustment | 7,122 | 7,208 | 7,019 | |||||||||||||||||||||||||||||||
Net interest income, as reported | $ | 130,771 | $ | 122,602 | $ | 115,969 | ||||||||||||||||||||||||||||
Net interest margin (5) | 3.49 | % | 3.60 | % | 3.52 | % | ||||||||||||||||||||||||||||
Tax equivalent effect | 0.19 | % | 0.21 | % | 0.21 | % | ||||||||||||||||||||||||||||
Net interest margin on a fully tax equivalent basis (5) | 3.68 | % | 3.81 | % | 3.73 | % |
(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. |
Nine Months Ended September 30, | ||||||||||||||||||||||
2016 | 2015 | |||||||||||||||||||||
Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | |||||||||||||||||
Interest Earning Assets: | ||||||||||||||||||||||
Loans held for sale | $ | 741,880 | $ | 19,351 | 3.48 | % | $ | 760,956 | $ | 20,528 | 3.60 | % | ||||||||||
Loans (1) (2) (3): | ||||||||||||||||||||||
Commercial-related credits | ||||||||||||||||||||||
Commercial: | 3,635,677 | 117,454 | 4.24 | 3,291,515 | 101,988 | 4.09 | ||||||||||||||||
Commercial loans collateralized by assignment of lease payments (lease loans) | 1,786,087 | 50,100 | 3.74 | 1,652,527 | 46,320 | 3.74 | ||||||||||||||||
Real estate commercial | 2,913,918 | 91,240 | 4.11 | 2,543,444 | 82,251 | 4.26 | ||||||||||||||||
Real estate construction | 341,988 | 10,259 | 3.94 | 197,970 | 8,900 | 5.93 | ||||||||||||||||
Total commercial-related credits | 8,677,670 | 269,053 | 4.07 | 7,685,456 | 239,459 | 4.11 | ||||||||||||||||
Other loans: | ||||||||||||||||||||||
Real estate residential | 738,124 | 18,880 | 3.41 | 524,349 | 14,965 | 3.81 | ||||||||||||||||
Home equity | 214,829 | 6,254 | 3.89 | 235,516 | 7,067 | 4.01 | ||||||||||||||||
Indirect | 458,281 | 15,929 | 4.64 | 293,111 | 11,271 | 5.14 | ||||||||||||||||
Consumer | 78,705 | 2,382 | 4.04 | 77,916 | 2,384 | 4.09 | ||||||||||||||||
Total other loans | 1,489,939 | 43,445 | 3.89 | 1,130,892 | 35,687 | 4.22 | ||||||||||||||||
Total loans, excluding purchased credit-impaired loans | 10,167,609 | 312,498 | 4.11 | 8,816,348 | 275,146 | 4.17 | ||||||||||||||||
Purchased credit-impaired loans | 137,132 | 14,554 | 14.18 | 199,378 | 12,845 | 8.61 | ||||||||||||||||
Total loans | 10,304,741 | 327,052 | 4.24 | 9,015,726 | 287,991 | 4.27 | ||||||||||||||||
Taxable investment securities | 1,528,251 | 26,209 | 2.29 | 1,548,369 | 29,591 | 2.55 | ||||||||||||||||
Investment securities exempt from federal income taxes (3) | 1,340,185 | 48,926 | 4.87 | 1,248,978 | 46,162 | 4.93 | ||||||||||||||||
Federal funds sold | 38 | 0 | 1.00 | 60 | 0 | 1.00 | ||||||||||||||||
Other interest earning deposits | 105,660 | 430 | 0.54 | 109,074 | 208 | 0.25 | ||||||||||||||||
Total interest earning assets | $ | 14,020,755 | $ | 421,968 | 4.02 | % | $ | 12,683,163 | $ | 384,480 | 4.05 | % | ||||||||||
Non-interest earning assets | 2,142,106 | 2,004,278 | ||||||||||||||||||||
Total assets | $ | 16,162,861 | $ | 14,687,441 | ||||||||||||||||||
Interest Bearing Liabilities: | ||||||||||||||||||||||
Core funding: | ||||||||||||||||||||||
Money market, NOW and interest bearing deposits | $ | 4,036,193 | $ | 6,434 | 0.21 | % | $ | 3,999,844 | $ | 5,062 | 0.17 | % | ||||||||||
Savings deposits | 1,024,050 | 564 | 0.07 | 963,291 | 379 | 0.05 | ||||||||||||||||
Certificates of deposit | 1,244,425 | 4,520 | 0.49 | 1,341,865 | 4,160 | 0.42 | ||||||||||||||||
Customer repurchase agreements | 187,698 | 292 | 0.21 | 244,217 | 337 | 0.18 | ||||||||||||||||
Total core funding | 6,492,366 | 11,810 | 0.24 | 6,549,217 | 9,938 | 0.20 | ||||||||||||||||
Wholesale funding: | ||||||||||||||||||||||
Brokered accounts (includes fee expense) | 612,210 | 6,737 | 1.47 | 438,626 | 4,700 | 1.43 | ||||||||||||||||
Other borrowings | 1,478,102 | 9,219 | 0.82 | 977,130 | 6,232 | 0.84 | ||||||||||||||||
Total wholesale funding | 2,090,312 | 15,956 | 1.02 | 1,415,756 | 10,932 | 1.01 | ||||||||||||||||
Total interest bearing liabilities | $ | 8,582,678 | $ | 27,766 | 0.43 | % | $ | 7,964,973 | $ | 20,870 | 0.35 | % | ||||||||||
Non-interest bearing deposits | 4,980,904 | 4,301,483 | ||||||||||||||||||||
Other non-interest bearing liabilities | 416,667 | 362,794 | ||||||||||||||||||||
Stockholders' equity | 2,182,612 | 2,058,191 | ||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 16,162,861 | $ | 14,687,441 | ||||||||||||||||||
Net interest income/interest rate spread (4) | $ | 394,202 | 3.59 | % | $ | 363,610 | 3.70 | % | ||||||||||||||
Taxable equivalent adjustment | 21,525 | 19,773 | ||||||||||||||||||||
Net interest income, as reported | $ | 372,677 | $ | 343,837 | ||||||||||||||||||
Net interest margin (5) | 3.55 | % | 3.62 | % | ||||||||||||||||||
Tax equivalent effect | 0.21 | % | 0.21 | % | ||||||||||||||||||
Net interest margin on a fully tax equivalent basis (5) | 3.76 | % | 3.83 | % |
(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. |
3Q16 | 2Q16 | 3Q15 | |||||||||||||||||||||||||||||||
Average Balance | Interest | Yield | Average Balance | Interest | Yield | Average Balance | Interest | Yield | |||||||||||||||||||||||||
Loan yield excluding acquisition accounting discount accretion on bank merger loans: | |||||||||||||||||||||||||||||||||
Total loans, as reported | $ | 11,071,267 | $ | 115,979 | 4.17 | % | $ | 10,062,187 | $ | 108,138 | 4.32 | % | $ | 9,185,419 | $ | 96,182 | 4.15 | % | |||||||||||||||
Less acquisition accounting discount accretion on non-PCI loans | (34,315 | ) | 4,114 | (27,123 | ) | 5,390 | (43,899 | ) | 5,875 | ||||||||||||||||||||||||
Less acquisition accounting discount accretion on PCI loans | (23,110 | ) | 2,046 | (23,272 | ) | 2,312 | (31,745 | ) | 1,533 | ||||||||||||||||||||||||
Total loans, excluding acquisition accounting discount accretion on bank merger loans | $ | 11,128,692 | $ | 109,819 | 3.93 | % | $ | 10,112,582 | $ | 100,436 | 3.99 | % | $ | 9,261,063 | $ | 88,774 | 3.80 | % | |||||||||||||||
Net interest margin on a fully tax equivalent basis, excluding acquisition accounting discount accretion on bank merger loans: | |||||||||||||||||||||||||||||||||
Total interest earning assets, as reported | $ | 14,921,719 | $ | 137,893 | 3.68 | % | $ | 13,696,433 | $ | 129,810 | 3.81 | % | $ | 13,065,798 | $ | 122,988 | 3.73 | % | |||||||||||||||
Less acquisition accounting discount accretion on non-PCI loans | (34,315 | ) | 4,114 | (27,123 | ) | 5,390 | (43,899 | ) | 5,875 | ||||||||||||||||||||||||
Less acquisition accounting discount accretion on PCI loans | (23,110 | ) | 2,046 | (23,272 | ) | 2,312 | (31,745 | ) | 1,533 | ||||||||||||||||||||||||
Total interest earning assets/net interest margin on a fully tax equivalent basis, excluding acquisition accounting discount accretion on bank merger loans | $ | 14,979,144 | $ | 131,733 | 3.50 | % | $ | 13,746,828 | $ | 122,108 | 3.57 | % | $ | 13,141,442 | $ | 115,580 | 3.49 | % |
Nine Months Ended September 30, | ||||||||||||||||||||||
2016 | 2015 | |||||||||||||||||||||
Average Balance | Interest | Yield | Average Balance | Interest | Yield | |||||||||||||||||
Loan yield excluding acquisition accounting discount accretion on bank merger loans: | ||||||||||||||||||||||
Total loans, as reported | $ | 10,304,741 | $ | 327,052 | 4.24 | % | $ | 9,015,726 | $ | 287,991 | 4.27 | % | ||||||||||
Less acquisition accounting discount accretion on non-PCI loans | (32,056 | ) | 14,455 | (50,627 | ) | 20,815 | ||||||||||||||||
Less acquisition accounting discount accretion on PCI loans | (24,206 | ) | 6,761 | (33,772 | ) | 3,121 | ||||||||||||||||
Total loans, excluding acquisition accounting discount accretion on bank merger loans | $ | 10,361,003 | $ | 305,836 | 3.94 | % | $ | 9,100,125 | $ | 264,055 | 3.88 | % | ||||||||||
Net interest margin on a fully tax equivalent basis, excluding acquisition accounting discount accretion on bank merger loans: | ||||||||||||||||||||||
Total interest earning assets, as reported | $ | 14,020,755 | $ | 394,202 | 3.76 | % | $ | 12,683,163 | $ | 363,610 | 3.83 | % | ||||||||||
Less acquisition accounting discount accretion on non-PCI loans | (32,056 | ) | 14,455 | (50,627 | ) | 20,815 | ||||||||||||||||
Less acquisition accounting discount accretion on PCI loans | (24,206 | ) | 6,761 | (33,772 | ) | 3,121 | ||||||||||||||||
Total interest earning assets/net interest margin on a fully tax equivalent basis, excluding acquisition accounting discount accretion on bank merger loans | $ | 14,077,017 | $ | 372,986 | 3.54 | % | $ | 12,767,562 | $ | 339,674 | 3.56 | % |