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: | January 26, 2017 | By: | /s/Randall T. Conte | |
Randall T. Conte | ||||
Vice President and Chief Financial Officer | ||||
(Principal Financial Officer) |
99 | MB Financial Inc.’s January 26, 2017 press release announcing its fourth quarter and annual 2016 results of operations. |
MB Financial, Inc. | ||||
800 West Madison Street | ||||
Chicago, Illinois 60607 | ||||
(847) 653-7375 | ||||
NASDAQ: MBFI |
Year Ended | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
4Q16 | 3Q16 | 4Q15 | 2016 | 2015 | |||||||||||||||||
Net income - as reported | $ | 47,191 | $ | 44,419 | $ | 43,607 | $ | 174,136 | $ | 158,948 | |||||||||||
Non-core items | 7,062 | 15,363 | (4,183 | ) | 28,214 | 5,769 | |||||||||||||||
Income tax expense on non-core items (1) | 2,406 | 7,867 | (1,140 | ) | 11,853 | 2,809 | |||||||||||||||
Non-core items, net of tax | 4,656 | 7,496 | (3,043 | ) | 16,361 | 2,960 | |||||||||||||||
Operating earnings | 51,847 | 51,915 | 40,564 | 190,497 | 161,908 | ||||||||||||||||
Dividends on preferred shares | 2,005 | 2,004 | 2,000 | 8,009 | 8,000 | ||||||||||||||||
Operating earnings available to common stockholders | $ | 49,842 | $ | 49,911 | $ | 38,564 | $ | 182,488 | $ | 153,908 | |||||||||||
Diluted operating earnings per common share | $ | 0.59 | $ | 0.63 | $ | 0.52 | $ | 2.34 | $ | 2.06 | |||||||||||
Weighted average common shares outstanding for diluted operating earnings per common share | 84,674,181 | 78,683,170 | 73,953,165 | 77,976,121 | 74,849,030 |
(1) | Both the third quarter of 2016 and the year ended December 31, 2016 include an adjustment for the $1.8 million income tax benefit resulting from the adoption of new stock-based compensation guidance. |
• | Net interest income on a fully tax equivalent basis increased by $14.4 million, or 10.5%, in the fourth quarter of 2016 compared to the prior quarter. This increase is due to a full quarter of American Chartered Bancorp, Inc. ("American Chartered") being presented as well as organic loan growth. |
• | Our net interest margin on a fully tax equivalent basis, excluding accretion on loans acquired in the Taylor Capital Group, Inc. ("Taylor Capital") and American Chartered mergers ("bank mergers"), decreased three basis points from the prior quarter primarily due to higher borrowing costs. |
• | Our core non-interest income decreased $14.4 million, or 13.4%, to $93.3 million compared to the prior quarter primarily due to a decrease in mortgage banking revenue which was a result of lower origination and servicing fees. Mortgage origination fees declined due to fewer rate lock commitments during the quarter as a result of higher interest rates and lower gain on sale margin. Servicing fees declined due to changes in the fair value of our mortgage servicing rights asset, net of related hedges, driven by interest rate volatility during the quarter. |
• | Our core non-interest expense increased $4.8 million, or 3.1%, to $159.1 million compared to the prior quarter primarily due to higher salaries and employee benefits, occupancy and equipment, and computer services and telecommunication expenses driven by the inclusion of a full quarter of American Chartered expenses. |
• | Net interest income on a fully tax equivalent basis increased by $53.8 million, or 10.9%, in 2016 compared to the prior year primarily due to organic loan growth as well as the impact of the American Chartered merger. |
• | Our net interest margin on a fully tax equivalent basis, excluding accretion on loans acquired in bank mergers, decreased four basis points in 2016 compared to the prior year primarily due to a decrease in average yields earned on investment securities and an increase in cost of deposits and borrowings. |
• | Our core non-interest income for 2016 increased by $51.6 million, or 16.0%, to $373.9 million compared to 2015 primarily due to higher mortgage banking revenue and trust and asset management fees. |
• | Our core non-interest expense increased by $62.1 million, or 11.7%, from 2015 to $590.6 million for 2016 primarily due to higher salaries and employee benefits, occupancy and equipment, computer services and telecommunication, and other operating expenses. |
12/31/2016 | 9/30/2016 | Change in Legacy Loan Balances from 9/30/2016 to 12/31/2016 | |||||||||||||||||||||||||||||
Legacy | American Chartered (1) | Total | Legacy | American Chartered (1) | Total | Amount | Percent | ||||||||||||||||||||||||
Commercial-related loans: | |||||||||||||||||||||||||||||||
Commercial | $ | 3,752,392 | $ | 594,114 | $ | 4,346,506 | $ | 3,745,486 | $ | 640,326 | $ | 4,385,812 | $ | 6,906 | +0.2 | % | |||||||||||||||
Commercial loans collateralized by assignment of lease payments (lease loans) | 2,002,976 | — | 2,002,976 | 1,873,380 | — | 1,873,380 | 129,596 | +6.9 | % | ||||||||||||||||||||||
Commercial real estate | 2,892,692 | 895,324 | 3,788,016 | 2,849,270 | 945,531 | 3,794,801 | 43,422 | +1.5 | % | ||||||||||||||||||||||
Construction real estate | 501,060 | 17,502 | 518,562 | 415,171 | 35,852 | 451,023 | 85,889 | +20.7 | % | ||||||||||||||||||||||
Total commercial-related loans | 9,149,120 | 1,506,940 | 10,656,060 | 8,883,307 | 1,621,709 | 10,505,016 | 265,813 | +3.0 | % | ||||||||||||||||||||||
Other loans: | |||||||||||||||||||||||||||||||
Residential real estate | 896,700 | 164,128 | 1,060,828 | 823,374 | 175,453 | 998,827 | 73,326 | +8.9 | % | ||||||||||||||||||||||
Indirect vehicle | 541,680 | — | 541,680 | 522,271 | — | 522,271 | 19,409 | +3.7 | % | ||||||||||||||||||||||
Home equity | 187,162 | 79,215 | 266,377 | 188,861 | 86,427 | 275,288 | (1,699 | ) | -0.9 | % | |||||||||||||||||||||
Consumer | 80,122 | 659 | 80,781 | 77,013 | 943 | 77,956 | 3,109 | +4.0 | % | ||||||||||||||||||||||
Total other loans | 1,705,664 | 244,002 | 1,949,666 | 1,611,519 | 262,823 | 1,874,342 | 94,145 | +5.8 | % | ||||||||||||||||||||||
Total loans, excluding purchased credit-impaired | 10,854,784 | 1,750,942 | 12,605,726 | 10,494,826 | 1,884,532 | 12,379,358 | 359,958 | +3.4 | % | ||||||||||||||||||||||
Purchased credit-impaired | 122,156 | 40,921 | 163,077 | 137,025 | 24,313 | 161,338 | (14,869 | ) | -10.9 | % | |||||||||||||||||||||
Total loans | $ | 10,976,940 | $ | 1,791,863 | $ | 12,768,803 | $ | 10,631,851 | $ | 1,908,845 | $ | 12,540,696 | $ | 345,089 | +3.2 | % |
(1) | American Chartered loans refer to the loans acquired in the American Chartered merger, including those that have been renewed subsequent to the merger. |
12/31/2016 | Change in Legacy Loan Balances from 12/31/2015 to 12/31/2016 | ||||||||||||||||||||||
Legacy | American Chartered (1) | Total | 12/31/2015 | Amount | Percent | ||||||||||||||||||
Commercial-related loans: | |||||||||||||||||||||||
Commercial | $ | 3,752,392 | $ | 594,114 | $ | 4,346,506 | $ | 3,616,286 | $ | 136,106 | +3.8 | % | |||||||||||
Commercial loans collateralized by assignment of lease payments (lease loans) | 2,002,976 | — | 2,002,976 | 1,779,072 | 223,904 | +12.6 | % | ||||||||||||||||
Commercial real estate | 2,892,692 | 895,324 | 3,788,016 | 2,695,676 | 197,016 | +7.3 | % | ||||||||||||||||
Construction real estate | 501,060 | 17,502 | 518,562 | 252,060 | 249,000 | +98.8 | % | ||||||||||||||||
Total commercial-related loans | 9,149,120 | 1,506,940 | 10,656,060 | 8,343,094 | 806,026 | +9.7 | % | ||||||||||||||||
Other loans: | |||||||||||||||||||||||
Residential real estate | 896,700 | 164,128 | 1,060,828 | 628,169 | 268,531 | +42.7 | % | ||||||||||||||||
Indirect vehicle | 541,680 | — | 541,680 | 384,095 | 157,585 | +41.0 | % | ||||||||||||||||
Home equity | 187,162 | 79,215 | 266,377 | 216,573 | (29,411 | ) | -13.6 | % | |||||||||||||||
Consumer | 80,122 | 659 | 80,781 | 80,661 | (539 | ) | -0.7 | % | |||||||||||||||
Total other loans | 1,705,664 | 244,002 | 1,949,666 | 1,309,498 | 396,166 | +30.3 | % | ||||||||||||||||
Total loans, excluding purchased credit-impaired | 10,854,784 | 1,750,942 | 12,605,726 | 9,652,592 | 1,202,192 | +12.5 | % | ||||||||||||||||
Purchased credit-impaired | 122,156 | 40,921 | 163,077 | 141,406 | (19,250 | ) | -13.6 | % | |||||||||||||||
Total loans | $ | 10,976,940 | $ | 1,791,863 | $ | 12,768,803 | $ | 9,793,998 | $ | 1,182,942 | +12.1 | % |
(1) | American Chartered loans refer to the loans acquired in the American Chartered merger, including those that have been renewed subsequent to the merger. |
12/31/2016 | 9/30/2016 | Change in Legacy Deposit Balances from 9/30/2016 to 12/31/2016 | |||||||||||||||||||||||||||||
Legacy | American Chartered (1) | Total | Legacy | American Chartered (1) | Total | Amount | Percent | ||||||||||||||||||||||||
Low cost deposits: | |||||||||||||||||||||||||||||||
Non-interest bearing deposits | $ | 5,137,605 | $ | 1,270,564 | $ | 6,408,169 | $ | 5,055,261 | $ | 1,355,073 | $ | 6,410,334 | $ | 82,344 | +1.6 | % | |||||||||||||||
Money market, NOW and interest bearing deposits | 3,861,222 | 681,782 | 4,543,004 | 3,896,438 | 763,969 | 4,660,407 | (35,216 | ) | -0.9 | % | |||||||||||||||||||||
Savings deposits | 1,024,368 | 111,624 | 1,135,992 | 1,030,834 | 117,066 | 1,147,900 | (6,466 | ) | -0.6 | % | |||||||||||||||||||||
Total low cost deposits | 10,023,195 | 2,063,970 | 12,087,165 | 9,982,533 | 2,236,108 | 12,218,641 | 40,662 | +0.4 | % | ||||||||||||||||||||||
Certificates of deposit: | |||||||||||||||||||||||||||||||
Certificates of deposit | 1,079,405 | 145,697 | 1,225,102 | 1,145,303 | 152,883 | 1,298,186 | (65,898 | ) | -5.8 | % | |||||||||||||||||||||
Brokered certificates of deposit | 774,802 | 23,379 | 798,181 | 738,960 | 23,479 | 762,439 | 35,842 | +4.9 | % | ||||||||||||||||||||||
Total certificates of deposit | 1,854,207 | 169,076 | 2,023,283 | 1,884,263 | 176,362 | 2,060,625 | (30,056 | ) | -1.6 | % | |||||||||||||||||||||
Total deposits | $ | 11,877,402 | $ | 2,233,046 | $ | 14,110,448 | $ | 11,866,796 | $ | 2,412,470 | $ | 14,279,266 | $ | 10,606 | +0.1 | % |
(1) | American Chartered deposits refer to deposits assumed in the American Chartered merger. |
12/31/2016 | Change in Legacy Deposit Balances from 12/31/2015 to 12/31/2016 | ||||||||||||||||||||||
Legacy | American Chartered (1) | Total | 12/31/2015 | Amount | Percent | ||||||||||||||||||
Low cost deposits: | |||||||||||||||||||||||
Non-interest bearing deposits | $ | 5,137,605 | $ | 1,270,564 | $ | 6,408,169 | $ | 4,627,184 | $ | 510,421 | +11.0 | % | |||||||||||
Money market, NOW and interest bearing deposits | 3,861,222 | 681,782 | 4,543,004 | 4,144,633 | (283,411 | ) | -6.8 | % | |||||||||||||||
Savings deposits | 1,024,368 | 111,624 | 1,135,992 | 974,555 | 49,813 | +5.1 | % | ||||||||||||||||
Total low cost deposits | 10,023,195 | 2,063,970 | 12,087,165 | 9,746,372 | 276,823 | +2.8 | % | ||||||||||||||||
Certificates of deposit: | |||||||||||||||||||||||
Certificates of deposit | 1,079,405 | 145,697 | 1,225,102 | 1,244,292 | (164,887 | ) | -13.3 | % | |||||||||||||||
Brokered certificates of deposit | 774,802 | 23,379 | 798,181 | 514,551 | 260,251 | +50.6 | % | ||||||||||||||||
Total certificates of deposit | 1,854,207 | 169,076 | 2,023,283 | 1,758,843 | 95,364 | +5.4 | % | ||||||||||||||||
Total deposits | $ | 11,877,402 | $ | 2,233,046 | $ | 14,110,448 | $ | 11,505,215 | $ | 372,187 | +3.2 | % |
(1) | American Chartered deposits refer to deposits assumed in the American Chartered merger. |
• | Our provision for credit losses decreased by $3.9 million in the fourth quarter of 2016 compared to the third quarter of 2016 and decreased by $1.8 million during the year ended December 31, 2016 compared to the prior year. The decrease from the prior quarter was primarily due to improvement of a potential problem loan at our leasing segment. |
• | Net loan charge-offs during the quarter were 0.10% of loans (annualized) compared to 0.09% (annualized) in the third quarter of 2016 and were 0.09% for the year ended December 31, 2016 compared to 0.04% for the year ended December 31, 2015. |
• | Non-accrual loans and non-performing assets decreased by $3.2 million (-6.1%) and $1.5 million (-1.7%), respectively, from September 30, 2016. Compared to a year ago, non-accrual loans decreased by $49.1 million (-50.1%) and non-performing assets decreased by $50.3 million (-36.9%). |
• | Potential problem loans increased by $33.0 million (+29.5%) from September 30, 2016 and increased by $4.6 million (+3.3%) from December 31, 2015. |
• | Our non-performing loans to total loans ratio was 0.46% at December 31, 2016, 0.43% at September 30, 2016 and 1.07% at December 31, 2015. |
Change from 3Q16 to 4Q16 | Change from 4Q15 to 4Q16 | Year Ended | Change from 2015 to 2016 | |||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||
4Q16 | 3Q16 | 4Q15 | 2016 | 2015 | ||||||||||||||||||||||||||
Net interest income - fully tax equivalent | $ | 152,304 | $ | 137,893 | +10.5 | % | $ | 129,076 | +18.0 | % | $ | 546,507 | $ | 492,686 | +10.9 | % | ||||||||||||||
Net interest income - fully tax equivalent, excluding acquisition accounting discount accretion on bank merger loans | 144,741 | 131,733 | +9.9 | % | 119,373 | +21.3 | % | 517,728 | 459,047 | +12.8 | % | |||||||||||||||||||
Net interest margin - fully tax equivalent | 3.67 | % | 3.68 | % | -0.01 | % | 3.86 | % | -0.19 | % | 3.73 | % | 3.84 | % | -0.11 | % | ||||||||||||||
Net interest margin - fully tax equivalent, excluding acquisition accounting discount accretion on bank merger loans | 3.47 | % | 3.50 | % | -0.03 | % | 3.56 | % | -0.09 | % | 3.52 | % | 3.56 | % | -0.04 | % |
Year Ended | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
4Q16 | 3Q16 | 2Q16 | 1Q16 | 4Q15 | 2016 | 2015 | |||||||||||||||||||||||
Core non-interest income: | |||||||||||||||||||||||||||||
Key fee initiatives: | |||||||||||||||||||||||||||||
Mortgage banking revenue | $ | 32,277 | $ | 49,095 | $ | 39,615 | $ | 27,482 | $ | 26,542 | $ | 148,469 | $ | 117,426 | |||||||||||||||
Lease financing revenue, net | 19,868 | 18,864 | 15,708 | 19,046 | 15,937 | 73,486 | 76,581 | ||||||||||||||||||||||
Commercial deposit and treasury management fees | 14,237 | 12,957 | 11,548 | 11,878 | 11,711 | 50,620 | 45,283 | ||||||||||||||||||||||
Trust and asset management fees | 8,442 | 8,244 | 8,236 | 7,950 | 6,077 | 32,872 | 23,545 | ||||||||||||||||||||||
Card fees | 4,340 | 4,161 | 4,045 | 3,525 | 3,651 | 16,071 | 15,322 | ||||||||||||||||||||||
Capital markets and international banking service fees | 4,021 | 3,313 | 2,771 | 3,227 | 2,355 | 13,332 | 8,148 | ||||||||||||||||||||||
Total key fee initiatives | 83,185 | 96,634 | 81,923 | 73,108 | 66,273 | 334,850 | 286,305 | ||||||||||||||||||||||
Consumer and other deposit service fees | 3,563 | 3,559 | 3,161 | 3,025 | 3,440 | 13,308 | 13,282 | ||||||||||||||||||||||
Brokerage fees | 887 | 1,294 | 1,315 | 1,158 | 1,252 | 4,654 | 5,754 | ||||||||||||||||||||||
Loan service fees | 1,952 | 1,792 | 1,961 | 1,752 | 1,890 | 7,457 | 6,259 | ||||||||||||||||||||||
Increase in cash surrender value of life insurance | 1,316 | 1,055 | 850 | 854 | 864 | 4,075 | 3,391 | ||||||||||||||||||||||
Other operating income | 2,350 | 3,337 | 2,043 | 1,836 | 1,344 | 9,566 | 7,274 | ||||||||||||||||||||||
Total core non-interest income | 93,253 | 107,671 | 91,253 | 81,733 | 75,063 | 373,910 | 322,265 | ||||||||||||||||||||||
Non-core non-interest income: | |||||||||||||||||||||||||||||
Net gain (loss) on investment securities | 178 | — | 269 | — | (3 | ) | 447 | (176 | ) | ||||||||||||||||||||
Net (loss) gain on disposal of other assets | (749 | ) | 5 | (2 | ) | (48 | ) | — | (794 | ) | (2 | ) | |||||||||||||||||
Increase in market value of assets held in trust for deferred compensation (1) | 141 | 711 | 480 | 8 | 565 | 1,340 | 6 | ||||||||||||||||||||||
Total non-core non-interest income | (430 | ) | 716 | 747 | (40 | ) | 562 | 993 | (172 | ) | |||||||||||||||||||
Total non-interest income | $ | 92,823 | $ | 108,387 | $ | 92,000 | $ | 81,693 | $ | 75,625 | $ | 374,903 | $ | 322,093 |
(1) | Resides in other operating income in the consolidated statements of operations. |
• | Mortgage banking revenue decreased as a result of lower origination and servicing fees. Mortgage origination fees declined due to fewer rate lock commitments during the quarter as a result of higher interest rates and lower gain on sale margin. Servicing fees declined due to changes in the fair value of our mortgage servicing rights asset, net of related hedges also driven by the volatile interest rate environment in the fourth quarter of 2016. |
• | Lease financing revenue increased primarily due to higher residual gains and an increase in operating lease revenue. |
• | Commercial deposit and treasury management fees increased due to the increased customer base as a result of the American Chartered merger. |
• | Capital markets and international banking services fees increased due to higher swap and M&A advisory fees partly offset by lower syndication fees. |
• | Other operating income decreased due to lower earnings from investments in Small Business Investment Companies. |
• | Mortgage banking revenue increased due to higher gain on sale margin and higher mortgage servicing fees. |
• | Leasing revenues decreased due to lower residual gains partly offset by higher 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, M&A advisory and syndication fees. |
• | Other operating income increased due to higher earnings from investments in Small Business Investment Companies. |
Year Ended | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
4Q16 | 3Q16 | 2Q16 | 1Q16 | 4Q15 | 2016 | 2015 | |||||||||||||||||||||||
Core non-interest expense: (1) | |||||||||||||||||||||||||||||
Salaries and employee benefits expense: | |||||||||||||||||||||||||||||
Salaries | $ | 58,823 | $ | 55,088 | $ | 51,383 | $ | 48,809 | $ | 48,433 | $ | 214,103 | $ | 189,570 | |||||||||||||||
Commissions | 12,036 | 12,318 | 10,822 | 10,348 | 9,794 | 45,524 | 45,564 | ||||||||||||||||||||||
Bonus and stock-based compensation | 12,167 | 12,980 | 12,871 | 8,657 | 9,950 | 46,675 | 39,932 | ||||||||||||||||||||||
Health and accident insurance | 5,951 | 6,377 | 6,079 | 5,599 | 4,646 | 24,006 | 21,075 | ||||||||||||||||||||||
Other salaries and benefits (2) | 15,072 | 15,320 | 13,045 | 12,089 | 11,533 | 55,526 | 47,560 | ||||||||||||||||||||||
Total salaries and employee benefits expense | 104,049 | 102,083 | 94,200 | 85,502 | 84,356 | 385,834 | 343,701 | ||||||||||||||||||||||
Occupancy and equipment expense | 15,594 | 14,662 | 13,407 | 13,260 | 12,935 | 56,923 | 50,235 | ||||||||||||||||||||||
Computer services and telecommunication expense | 11,019 | 9,731 | 9,266 | 8,750 | 8,548 | 38,766 | 34,147 | ||||||||||||||||||||||
Advertising and marketing expense | 3,039 | 3,031 | 2,923 | 2,855 | 2,549 | 11,848 | 10,070 | ||||||||||||||||||||||
Professional and legal expense | 2,351 | 2,779 | 3,220 | 2,492 | 2,715 | 10,842 | 8,593 | ||||||||||||||||||||||
Other intangible amortization expense | 2,388 | 1,674 | 1,617 | 1,626 | 1,546 | 7,305 | 6,115 | ||||||||||||||||||||||
Net loss (gain) recognized on other real estate owned (A) | 182 | (890 | ) | (297 | ) | (637 | ) | (256 | ) | (1,642 | ) | 1,814 | |||||||||||||||||
Net (gain) loss recognized on other real estate owned related to FDIC transactions (A) | (1,164 | ) | (18 | ) | 312 | 154 | (549 | ) | (716 | ) | (845 | ) | |||||||||||||||||
Other real estate expense, net (A) | 192 | 187 | 243 | 137 | 76 | 759 | 499 | ||||||||||||||||||||||
Other operating expenses | 21,478 | 21,067 | 19,814 | 18,366 | 18,932 | 80,725 | 74,228 | ||||||||||||||||||||||
Total core non-interest expense | 159,128 | 154,306 | 144,705 | 132,505 | 130,852 | 590,644 | 528,557 | ||||||||||||||||||||||
Non-core non-interest expense: (1) | |||||||||||||||||||||||||||||
Merger related and repositioning expenses (B) | 6,491 | 11,368 | 2,566 | 3,287 | (4,186 | ) | 23,712 | 5,506 | |||||||||||||||||||||
Branch exit and facilities impairment charges | — | — | 155 | — | — | 155 | — | ||||||||||||||||||||||
Prepayment fees on interest bearing liabilities | — | — | — | — | — | — | 85 | ||||||||||||||||||||||
Contribution to MB Financial Charitable Foundation (C) | — | 4,000 | — | — | — | 4,000 | — | ||||||||||||||||||||||
Increase in market value of assets held in trust for deferred compensation (D) | 141 | 711 | 480 | 8 | 565 | 1,340 | 6 | ||||||||||||||||||||||
Total non-core non-interest expense | 6,632 | 16,079 | 3,201 | 3,295 | (3,621 | ) | 29,207 | 5,597 | |||||||||||||||||||||
Total non-interest expense | $ | 165,760 | $ | 170,385 | $ | 147,906 | $ | 135,800 | $ | 127,231 | $ | 619,851 | $ | 534,154 |
(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 for a full quarter. |
• | Occupancy and equipment expense increased due to the additional offices acquired through the American Chartered merger for a full quarter. |
• | Computer services and telecommunication expense increased due to investments in systems as well as the increase in customer activity as a result of the American Chartered merger. |
• | Professional and legal expense decreased due to lower legal expense. |
• | Other intangible amortization expense was higher due to the core deposit intangible recorded as a result of the American Chartered merger. |
• | Salaries and employee benefits expense increased due to the following: |
• | Salaries increased due to new hires, annual pay increases effective in the beginning of the second quarter and increased staff from the American Chartered merger and the acquisition of MSA. |
• | Bonus and stock-based compensation increased primarily due to an increase in bonus expense based on company performance in 2016 as well as the increase in staff. |
• | Other salaries and benefits expense increased due to increased temporary help in our IT, mortgage and other support areas as well as higher 401(k) match and profit sharing contribution expense and payroll taxes as a result of the increase in staff. |
• | Occupancy and equipment expense increased due to higher depreciation, property tax and rental operating expenses as a result of the acquisition of MSA and the American Chartered merger as well as new offices opened at our Mortgage Banking Segment. |
• | Computer services and telecommunication expense increased due to higher processing costs as a result of increased customer base and investments in systems. |
• | Advertising and marketing expense increased due to increased brand awareness advertising. |
• | Professional and legal expense increased due to increased litigation and consulting fees. |
• | Other intangible amortization expense was higher due to the customer and core deposit intangibles recorded as a result of the acquisition of MSA and the American Chartered merger, respectively. |
• | 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). |
Year Ended | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
4Q16 | 3Q16 | 2Q16 | 1Q16 | 4Q15 | 2016 | 2015 | |||||||||||||||||||||||
Merger related and repositioning expenses: | |||||||||||||||||||||||||||||
Salaries and employee benefits | $ | 4,238 | $ | 8,684 | $ | 324 | $ | 81 | $ | (212 | ) | $ | 13,327 | $ | (176 | ) | |||||||||||||
Occupancy and equipment expense | 95 | 104 | 8 | — | — | 207 | 275 | ||||||||||||||||||||||
Computer services and telecommunication expense | 781 | 3,105 | 511 | 305 | (103 | ) | 4,702 | 306 | |||||||||||||||||||||
Advertising and marketing expense | 6 | 53 | 41 | 23 | 2 | 123 | 2 | ||||||||||||||||||||||
Professional and legal expense | 158 | 1,681 | 101 | 97 | 1,454 | 2,037 | 2,460 | ||||||||||||||||||||||
Branch exit and facilities impairment charges | — | (2,908 | ) | — | 44 | 616 | (2,864 | ) | 8,515 | ||||||||||||||||||||
Contingent consideration expense - Celtic acquisition (1) | 1,000 | — | — | 2,703 | — | 3,703 | — | ||||||||||||||||||||||
Other operating expenses | 213 | 649 | 1,581 | 34 | (5,943 | ) | 2,477 | (5,876 | ) | ||||||||||||||||||||
Total merger related and repositioning expenses | $ | 6,491 | $ | 11,368 | $ | 2,566 | $ | 3,287 | $ | (4,186 | ) | $ | 23,712 | $ | 5,506 |
(1) | Resides in other operating expenses in the consolidated statements of operations. |
Year Ended | ||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||
4Q16 | 3Q16 | 2Q16 | 1Q16 | 4Q15 | 2016 | 2015 | ||||||||||||||||||||||
Net interest income | $ | 133,688 | $ | 119,685 | $ | 112,152 | $ | 109,608 | $ | 111,691 | $ | 475,133 | $ | 424,883 | ||||||||||||||
Provision for credit losses | 4,193 | 4,394 | 2,995 | 7,001 | 6,654 | 18,583 | 19,436 | |||||||||||||||||||||
Net interest income after provision for credit losses | 129,495 | 115,291 | 109,157 | 102,607 | 105,037 | 456,550 | 405,447 | |||||||||||||||||||||
Non-interest income: | ||||||||||||||||||||||||||||
Mortgage origination fees | — | — | — | — | — | — | — | |||||||||||||||||||||
Mortgage servicing fees | — | — | — | — | — | — | — | |||||||||||||||||||||
Lease financing revenue, net | 1,050 | 890 | 789 | 679 | 1,180 | 3,408 | 2,750 | |||||||||||||||||||||
Other non-interest income | 40,354 | 38,927 | 35,144 | 34,369 | 31,772 | 148,794 | 125,132 | |||||||||||||||||||||
Total non-interest income | 41,404 | 39,817 | 35,933 | 35,048 | 32,952 | 152,202 | 127,882 | |||||||||||||||||||||
Non-interest expense: | ||||||||||||||||||||||||||||
Salaries and employee benefits expense: | ||||||||||||||||||||||||||||
Salaries | 42,797 | 38,575 | 35,951 | 34,527 | 34,840 | 151,850 | 135,905 | |||||||||||||||||||||
Commissions | 1,090 | 1,172 | 1,424 | 1,396 | 1,503 | 5,082 | 4,932 | |||||||||||||||||||||
Bonus and stock-based compensation | 9,535 | 10,553 | 10,852 | 6,476 | 7,838 | 37,416 | 32,480 | |||||||||||||||||||||
Health and accident insurance | 3,579 | 4,045 | 3,816 | 3,461 | 2,765 | 14,901 | 13,316 | |||||||||||||||||||||
Other salaries and benefits (1) | 10,341 | 9,612 | 8,171 | 7,542 | 7,144 | 35,666 | 29,412 | |||||||||||||||||||||
Total salaries and employee benefits expense | 67,342 | 63,957 | 60,214 | 53,402 | 54,090 | 244,915 | 216,045 | |||||||||||||||||||||
Occupancy and equipment expense | 12,765 | 11,724 | 10,561 | 10,430 | 10,344 | 45,480 | 40,512 | |||||||||||||||||||||
Computer services and telecommunication expense | 8,813 | 7,418 | 6,945 | 6,446 | 6,200 | 29,622 | 24,983 | |||||||||||||||||||||
Professional and legal expense | 1,281 | 1,566 | 2,385 | 1,486 | 1,709 | 6,718 | 4,784 | |||||||||||||||||||||
Other operating expenses | 17,430 | 16,467 | 16,587 | 15,570 | 15,757 | 66,054 | 63,806 | |||||||||||||||||||||
Total non-interest expense | 107,631 | 101,132 | 96,692 | 87,334 | 88,100 | 392,789 | 350,130 | |||||||||||||||||||||
Income before income taxes | 63,268 | 53,976 | 48,398 | 50,321 | 49,889 | 215,963 | 183,199 | |||||||||||||||||||||
Income tax expense | 19,422 | 16,287 | 14,353 | 14,927 | 14,998 | 64,989 | 54,456 | |||||||||||||||||||||
Net income | $ | 43,846 | $ | 37,689 | $ | 34,045 | $ | 35,394 | $ | 34,891 | $ | 150,974 | $ | 128,743 |
(1) | Includes payroll taxes, 401(k) and profit sharing contributions, overtime and temporary help expenses. |
Year Ended | ||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||
4Q16 | 3Q16 | 2Q16 | 1Q16 | 4Q15 | 2016 | 2015 | ||||||||||||||||||||||
Net interest income | $ | 2,413 | $ | 2,168 | $ | 2,411 | $ | 2,423 | $ | 2,714 | $ | 9,415 | $ | 11,475 | ||||||||||||||
Provision for credit losses | (1,750 | ) | 1,964 | (356 | ) | 437 | — | 295 | 1,598 | |||||||||||||||||||
Net interest income after provision for credit losses | 4,163 | 204 | 2,767 | 1,986 | 2,714 | 9,120 | 9,877 | |||||||||||||||||||||
Non-interest income: | ||||||||||||||||||||||||||||
Mortgage origination fees | — | — | — | — | — | — | — | |||||||||||||||||||||
Mortgage servicing fees | — | — | — | — | — | — | — | |||||||||||||||||||||
Lease financing revenue, net | 19,005 | 17,974 | 14,919 | 18,367 | 14,757 | 70,265 | 73,831 | |||||||||||||||||||||
Other non-interest income | 754 | 785 | 786 | 839 | 802 | 3,164 | 3,112 | |||||||||||||||||||||
Total non-interest income | 19,759 | 18,759 | 15,705 | 19,206 | 15,559 | 73,429 | 76,943 | |||||||||||||||||||||
Non-interest expense: | ||||||||||||||||||||||||||||
Salaries and employee benefits expense: | ||||||||||||||||||||||||||||
Salaries | 3,081 | 3,555 | 3,344 | 2,832 | 2,286 | 12,812 | 10,211 | |||||||||||||||||||||
Commissions | 2,768 | 2,592 | 2,172 | 3,936 | 3,047 | 11,468 | 15,298 | |||||||||||||||||||||
Bonus and stock-based compensation | 1,516 | 950 | 829 | 872 | 1,052 | 4,167 | 3,735 | |||||||||||||||||||||
Health and accident insurance | 376 | 376 | 376 | 335 | 312 | 1,463 | 1,287 | |||||||||||||||||||||
Other salaries and benefits (1) | 941 | 934 | 886 | 1,108 | 777 | 3,869 | 3,193 | |||||||||||||||||||||
Total salaries and employee benefits expense | 8,682 | 8,407 | 7,607 | 9,083 | 7,474 | 33,779 | 33,724 | |||||||||||||||||||||
Occupancy and equipment expense | 929 | 966 | 947 | 895 | 855 | 3,737 | 3,355 | |||||||||||||||||||||
Computer services and telecommunication expense | 483 | 432 | 431 | 363 | 340 | 1,709 | 1,244 | |||||||||||||||||||||
Professional and legal expense | 652 | 802 | 414 | 409 | 328 | 2,277 | 1,172 | |||||||||||||||||||||
Other operating expenses | 1,714 | 1,997 | 1,716 | 1,447 | 1,501 | 6,874 | 5,869 | |||||||||||||||||||||
Total non-interest expense | 12,460 | 12,604 | 11,115 | 12,197 | 10,498 | 48,376 | 45,364 | |||||||||||||||||||||
Income before income taxes | 11,462 | 6,359 | 7,357 | 8,995 | 7,775 | 34,173 | 41,456 | |||||||||||||||||||||
Income tax expense | 4,653 | 2,484 | 2,879 | 3,509 | 3,037 | 13,525 | 16,255 | |||||||||||||||||||||
Net income | $ | 6,809 | $ | 3,875 | $ | 4,478 | $ | 5,486 | $ | 4,738 | $ | 20,648 | $ | 25,201 |
(1) | Includes payroll taxes, 401(k) and profit sharing contributions, overtime and temporary help expenses. |
Year Ended | ||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||
4Q16 | 3Q16 | 2Q16 | 1Q16 | 4Q15 | 2016 | 2015 | ||||||||||||||||||||||
Net interest income | $ | 9,113 | $ | 8,918 | $ | 8,039 | $ | 7,273 | $ | 7,364 | $ | 33,343 | $ | 29,248 | ||||||||||||||
Provision for credit losses | 179 | 191 | 190 | 125 | 104 | 685 | 352 | |||||||||||||||||||||
Net interest income after provision for credit losses | 8,934 | 8,727 | 7,849 | 7,148 | 7,260 | 32,658 | 28,896 | |||||||||||||||||||||
Non-interest income: | ||||||||||||||||||||||||||||
Mortgage origination fees | 29,317 | 39,962 | 31,417 | 16,894 | 17,596 | 117,590 | 94,703 | |||||||||||||||||||||
Mortgage servicing fees | 2,960 | 9,133 | 8,198 | 10,588 | 8,946 | 30,879 | 22,723 | |||||||||||||||||||||
Lease financing revenue, net | — | — | — | — | — | — | — | |||||||||||||||||||||
Other non-interest income | — | — | — | (3 | ) | 10 | (3 | ) | 14 | |||||||||||||||||||
Total non-interest income | 32,277 | 49,095 | 39,615 | 27,479 | 26,552 | 148,466 | 117,440 | |||||||||||||||||||||
Non-interest expense: | ||||||||||||||||||||||||||||
Salaries and employee benefits expense: | ||||||||||||||||||||||||||||
Salaries | 12,945 | 12,958 | 12,088 | 11,450 | 11,307 | 49,441 | 43,454 | |||||||||||||||||||||
Commissions | 8,178 | 8,554 | 7,226 | 5,016 | 5,244 | 28,974 | 25,334 | |||||||||||||||||||||
Bonus and stock-based compensation | 1,116 | 1,477 | 1,190 | 1,309 | 1,060 | 5,092 | 3,717 | |||||||||||||||||||||
Health and accident insurance | 1,996 | 1,956 | 1,887 | 1,803 | 1,569 | 7,642 | 6,472 | |||||||||||||||||||||
Other salaries and benefits (1) | 3,790 | 4,774 | 3,988 | 3,439 | 3,612 | 15,991 | 14,955 | |||||||||||||||||||||
Total salaries and employee benefits expense | 28,025 | 29,719 | 26,379 | 23,017 | 22,792 | 107,140 | 93,932 | |||||||||||||||||||||
Occupancy and equipment expense | 1,900 | 1,972 | 1,899 | 1,935 | 1,736 | 7,706 | 6,368 | |||||||||||||||||||||
Computer services and telecommunication expense | 1,910 | 1,881 | 1,890 | 1,941 | 2,008 | 7,622 | 7,920 | |||||||||||||||||||||
Professional and legal expense | 418 | 411 | 421 | 597 | 678 | 1,847 | 2,637 | |||||||||||||||||||||
Other operating expenses | 6,971 | 6,587 | 6,309 | 5,484 | 5,040 | 25,351 | 22,206 | |||||||||||||||||||||
Total non-interest expense | 39,224 | 40,570 | 36,898 | 32,974 | 32,254 | 149,666 | 133,063 | |||||||||||||||||||||
Income before income taxes | 1,987 | 17,252 | 10,566 | 1,653 | 1,558 | 31,458 | 13,273 | |||||||||||||||||||||
Income tax expense | 795 | 6,901 | 4,226 | 661 | 623 | 12,583 | 5,309 | |||||||||||||||||||||
Net income | $ | 1,192 | $ | 10,351 | $ | 6,340 | $ | 992 | $ | 935 | $ | 18,875 | $ | 7,964 |
(1) | Includes payroll taxes, 401(k) and profit sharing contributions, overtime and temporary help expenses. |
Year Ended | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
4Q16 | 3Q16 | 2Q16 | 1Q16 | 4Q15 | 2016 | 2015 | |||||||||||||||||||||||
Origination volume | $ | 2,054,406 | $ | 1,976,377 | $ | 1,709,044 | $ | 1,328,804 | $ | 1,437,057 | $ | 7,068,631 | $ | 7,016,733 | |||||||||||||||
Refinance | 56 | % | 48 | % | 42 | % | 49 | % | 42 | % | 49 | % | 45 | % | |||||||||||||||
Purchase | 44 | 52 | 58 | 51 | 58 | 51 | 55 | ||||||||||||||||||||||
Origination volume by channel: | |||||||||||||||||||||||||||||
Retail | 21 | % | 22 | % | 23 | % | 19 | % | 18 | % | 21 | % | 18 | % | |||||||||||||||
Third party | 79 | 78 | 77 | 81 | 82 | 79 | 82 | ||||||||||||||||||||||
Mortgage servicing book (unpaid principal balance of loans serviced for others) at period end | $ | 19,683,073 | $ | 18,477,648 | $ | 17,739,626 | $ | 16,911,325 | $ | 16,218,613 | $ | 19,683,073 | $ | 16,218,613 | |||||||||||||||
Mortgage servicing rights, recorded at fair value, at period end | 238,011 | 154,730 | 134,969 | 145,800 | 168,162 | 238,011 | 168,162 | ||||||||||||||||||||||
Notional value of rate lock commitments, at period end | 543,900 | 1,201,100 | 981,000 | 823,000 | 622,906 | 543,900 | 622,906 |
12/31/2016 | 9/30/2016 | 6/30/2016 | 3/31/2016 | 12/31/2015 | |||||||||||||||||||||||||||||||
Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||||||||||||||||||
Commercial related loans: | |||||||||||||||||||||||||||||||||||
Commercial | $ | 4,346,506 | 34 | % | $ | 4,385,812 | 35 | % | $ | 3,561,500 | 35 | % | $ | 3,509,604 | 36 | % | $ | 3,616,286 | 37 | % | |||||||||||||||
Commercial loans collateralized by assignment of lease payments (lease loans) | 2,002,976 | 16 | 1,873,380 | 15 | 1,794,465 | 18 | 1,774,104 | 18 | 1,779,072 | 18 | |||||||||||||||||||||||||
Commercial real estate | 3,788,016 | 29 | 3,794,801 | 30 | 2,827,720 | 28 | 2,831,814 | 28 | 2,695,676 | 27 | |||||||||||||||||||||||||
Construction real estate | 518,562 | 4 | 451,023 | 4 | 357,807 | 3 | 310,278 | 3 | 252,060 | 3 | |||||||||||||||||||||||||
Total commercial related loans | 10,656,060 | 83 | 10,505,016 | 84 | 8,541,492 | 84 | 8,425,800 | 85 | 8,343,094 | 85 | |||||||||||||||||||||||||
Other loans: | |||||||||||||||||||||||||||||||||||
Residential real estate | 1,060,828 | 8 | 998,827 | 8 | 753,707 | 7 | 677,791 | 7 | 628,169 | 6 | |||||||||||||||||||||||||
Indirect vehicle | 541,680 | 4 | 522,271 | 4 | 491,480 | 5 | 432,915 | 4 | 384,095 | 4 | |||||||||||||||||||||||||
Home equity | 266,377 | 2 | 275,288 | 2 | 198,622 | 2 | 207,079 | 2 | 216,573 | 2 | |||||||||||||||||||||||||
Consumer | 80,781 | 1 | 77,956 | 1 | 75,775 | 1 | 77,318 | 1 | 80,661 | 1 | |||||||||||||||||||||||||
Total other loans | 1,949,666 | 15 | 1,874,342 | 15 | 1,519,584 | 15 | 1,395,103 | 14 | 1,309,498 | 13 | |||||||||||||||||||||||||
Total loans, excluding purchased credit-impaired loans | 12,605,726 | 98 | 12,379,358 | 99 | 10,061,076 | 99 | 9,820,903 | 99 | 9,652,592 | 98 | |||||||||||||||||||||||||
Purchased credit-impaired loans | 163,077 | 2 | 161,338 | 1 | 136,811 | 1 | 140,445 | 1 | 141,406 | 2 | |||||||||||||||||||||||||
Total loans | $ | 12,768,803 | 100 | % | $ | 12,540,696 | 100 | % | $ | 10,197,887 | 100 | % | $ | 9,961,348 | 100 | % | $ | 9,793,998 | 100 | % | |||||||||||||||
Change from prior quarter | +1.8 | % | +23.0 | % | +2.4 | % | +1.7 | % | +4.3 | % | |||||||||||||||||||||||||
Change from same quarter one year ago | +30.4 | % | +33.6 | % | +12.1 | % | +11.7 | % | +7.8 | % |
4Q16 | 3Q16 | 2Q16 | 1Q16 | 4Q15 | |||||||||||||||||||||||||||||||
Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||||||||||||||||||
Commercial-related loans: | |||||||||||||||||||||||||||||||||||
Commercial | $ | 4,274,398 | 35 | % | $ | 3,850,588 | 35 | % | $ | 3,522,641 | 35 | % | $ | 3,531,441 | 36 | % | $ | 3,492,161 | 37 | % | |||||||||||||||
Commercial loans collateralized by assignment of lease payments (lease loans) | 1,896,486 | 15 | 1,825,505 | 16 | 1,777,763 | 18 | 1,754,558 | 18 | 1,708,404 | 18 | |||||||||||||||||||||||||
Commercial real estate | 3,775,599 | 30 | 3,183,131 | 29 | 2,821,516 | 28 | 2,734,148 | 28 | 2,627,004 | 28 | |||||||||||||||||||||||||
Construction real estate | 486,861 | 4 | 397,480 | 4 | 351,079 | 3 | 276,797 | 3 | 274,188 | 2 | |||||||||||||||||||||||||
Total commercial-related loans | 10,433,344 | 84 | 9,256,704 | 84 | 8,472,999 | 84 | 8,296,944 | 85 | 8,101,757 | 85 | |||||||||||||||||||||||||
Other loans: | |||||||||||||||||||||||||||||||||||
Residential real estate | 1,031,152 | 8 | 862,393 | 7 | 710,384 | 7 | 640,231 | 7 | 612,275 | 6 | |||||||||||||||||||||||||
Indirect vehicle | 532,782 | 4 | 507,772 | 5 | 462,053 | 5 | 404,473 | 4 | 365,744 | 4 | |||||||||||||||||||||||||
Home equity | 273,694 | 2 | 231,399 | 2 | 202,228 | 2 | 210,678 | 2 | 219,440 | 2 | |||||||||||||||||||||||||
Consumer | 80,113 | 1 | 77,451 | 1 | 78,108 | 1 | 80,569 | 1 | 83,869 | 1 | |||||||||||||||||||||||||
Total other loans | 1,917,741 | 15 | 1,679,015 | 15 | 1,452,773 | 15 | 1,335,951 | 14 | 1,281,328 | 13 | |||||||||||||||||||||||||
Total loans, excluding purchased credit-impaired loans | 12,351,085 | 99 | 10,935,719 | 99 | 9,925,772 | 99 | 9,632,895 | 99 | 9,383,085 | 98 | |||||||||||||||||||||||||
Purchased credit-impaired loans | 152,509 | 1 | 135,548 | 1 | 136,415 | 1 | 139,451 | 1 | 154,562 | 2 | |||||||||||||||||||||||||
Total loans | $ | 12,503,594 | 100 | % | $ | 11,071,267 | 100 | % | $ | 10,062,187 | 100 | % | $ | 9,772,346 | 100 | % | $ | 9,537,647 | 100 | % | |||||||||||||||
Change from prior quarter | +12.9 | % | +10.0 | % | +3.0 | % | +2.5 | % | +3.8 | % | |||||||||||||||||||||||||
Change from same quarter one year ago | +31.1 | % | +20.5 | % | +12.2 | % | +9.9 | % | +6.2 | % |
12/31/2016 | 9/30/2016 | 6/30/2016 | 3/31/2016 | 12/31/2015 | ||||||||||||||||
Non-performing loans: | ||||||||||||||||||||
Non-accrual loans (1) | $ | 48,974 | $ | 52,135 | $ | 67,544 | $ | 93,602 | $ | 98,065 | ||||||||||
Loans 90 days or more past due, still accruing interest | 10,378 | 1,774 | 7,190 | 1,112 | 6,596 | |||||||||||||||
Total non-performing loans | 59,352 | 53,909 | 74,734 | 94,714 | 104,661 | |||||||||||||||
Other real estate owned | 26,279 | 33,105 | 27,663 | 28,309 | 31,553 | |||||||||||||||
Repossessed assets | 322 | 453 | 459 | 187 | 81 | |||||||||||||||
Total non-performing assets | $ | 85,953 | $ | 87,467 | $ | 102,856 | $ | 123,210 | $ | 136,295 | ||||||||||
Potential problem loans (2) | $ | 144,544 | $ | 111,594 | $ | 99,782 | $ | 110,193 | $ | 139,941 | ||||||||||
Purchased credit-impaired loans | $ | 163,077 | $ | 161,338 | $ | 136,811 | $ | 140,445 | $ | 141,406 | ||||||||||
Total non-performing, potential problem and purchased credit-impaired loans | $ | 366,973 | $ | 326,841 | $ | 311,327 | $ | 345,352 | $ | 386,008 | ||||||||||
Total allowance for loan and lease losses | $ | 139,366 | $ | 139,528 | $ | 135,614 | $ | 134,493 | $ | 128,140 | ||||||||||
Accruing restructured loans (3) | 32,687 | 28,561 | 26,715 | 27,269 | 26,991 | |||||||||||||||
Total non-performing loans to total loans | 0.46 | % | 0.43 | % | 0.73 | % | 0.95 | % | 1.07 | % | ||||||||||
Total non-performing assets to total assets | 0.45 | 0.45 | 0.64 | 0.79 | 0.87 | |||||||||||||||
Allowance for loan and lease losses to non-performing loans | 234.81 | 258.82 | 181.46 | 142.00 | 122.43 |
(1) | Includes $27.1 million, $23.4 million, $28.9 million, $24.0 million and $23.6 million of restructured loans on non-accrual status at December 31, 2016, September 30, 2016, June 30, 2016, March 31, 2016 and December 31, 2015, respectively. |
(2) | We define potential problem loans as loans rated substandard that do not meet the definition of a non-performing loan. Potential problem loans carry a higher probability of default and require additional attention by management. |
(3) | Accruing restructured loans consist of loans that have been modified and are performing in accordance with those modified terms as of the dates indicated. |
12/31/2016 | 9/30/2016 | 6/30/2016 | 3/31/2016 | 12/31/2015 | ||||||||||||||||
Commercial and lease | $ | 15,189 | $ | 14,898 | $ | 29,509 | $ | 28,590 | $ | 37,076 | ||||||||||
Commercial real estate | 11,767 | 4,655 | 7,163 | 27,786 | 29,073 | |||||||||||||||
Consumer related | 32,396 | 34,356 | 38,062 | 38,338 | 38,512 | |||||||||||||||
Total non-performing loans | $ | 59,352 | $ | 53,909 | $ | 74,734 | $ | 94,714 | $ | 104,661 |
12/31/2016 | 9/30/2016 | 6/30/2016 | 3/31/2016 | 12/31/2015 | ||||||||||||||||
Balance at the beginning of quarter | $ | 33,105 | $ | 27,663 | $ | 28,309 | $ | 31,553 | $ | 29,587 | ||||||||||
Transfers in at fair value less estimated costs to sell | 1,191 | 929 | 1,367 | 1,270 | 5,964 | |||||||||||||||
Acquired from business combination | — | 4,148 | — | — | — | |||||||||||||||
Capitalized other real estate owned costs | — | 96 | — | — | — | |||||||||||||||
Fair value adjustments | (2,834 | ) | 865 | 70 | 45 | (721 | ) | |||||||||||||
Net gains on sales of other real estate owned | 2,652 | 25 | 227 | 592 | 977 | |||||||||||||||
Cash received upon disposition | (7,835 | ) | (621 | ) | (2,310 | ) | (5,151 | ) | (4,254 | ) | ||||||||||
Balance at the end of quarter | $ | 26,279 | $ | 33,105 | $ | 27,663 | $ | 28,309 | $ | 31,553 |
Year Ended | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
4Q16 | 3Q16 | 2Q16 | 1Q16 | 4Q15 | 2016 | 2015 | |||||||||||||||||||||||
Allowance for credit losses, balance at the beginning of period | $ | 142,399 | $ | 138,333 | $ | 137,732 | $ | 131,508 | $ | 128,038 | $ | 131,508 | $ | 114,057 | |||||||||||||||
Provision for credit losses | 2,622 | 6,549 | 2,829 | 7,563 | 6,758 | 19,563 | 21,386 | ||||||||||||||||||||||
Charge-offs: | |||||||||||||||||||||||||||||
Commercial | — | 1,341 | 72 | 713 | 710 | 2,126 | 2,993 | ||||||||||||||||||||||
Commercial loans collateralized by assignment of lease payments (lease loans) | 3,452 | 367 | 2,347 | 574 | 685 | 6,740 | 2,765 | ||||||||||||||||||||||
Commercial real estate | 250 | 529 | 1,720 | 352 | 1,251 | 2,851 | 3,563 | ||||||||||||||||||||||
Construction real estate | 442 | 7 | 144 | — | 23 | 593 | 34 | ||||||||||||||||||||||
Residential real estate | 222 | 290 | 476 | 368 | 261 | 1,356 | 1,450 | ||||||||||||||||||||||
Home equity | 429 | 376 | 619 | 238 | 407 | 1,662 | 1,485 | ||||||||||||||||||||||
Indirect vehicle | 1,085 | 838 | 651 | 931 | 898 | 3,505 | 2,980 | ||||||||||||||||||||||
Consumer | 562 | 409 | 395 | 412 | 550 | 1,778 | 1,941 | ||||||||||||||||||||||
Total charge-offs | 6,442 | 4,157 | 6,424 | 3,588 | 4,785 | 20,611 | 17,211 | ||||||||||||||||||||||
Recoveries: | |||||||||||||||||||||||||||||
Commercial | 437 | 665 | 952 | 380 | 235 | 2,434 | 1,749 | ||||||||||||||||||||||
Commercial loans collateralized by assignment of lease payments (lease loans) | 30 | 3 | 467 | 50 | 12 | 550 | 1,112 | ||||||||||||||||||||||
Commercial real estate | 968 | 324 | 1,843 | 594 | 385 | 3,729 | 6,723 | ||||||||||||||||||||||
Construction real estate | 48 | 50 | 17 | 27 | 19 | 142 | 272 | ||||||||||||||||||||||
Residential real estate | 1,059 | 45 | 82 | 24 | 98 | 1,210 | 515 | ||||||||||||||||||||||
Home equity | 180 | 65 | 193 | 318 | 132 | 756 | 579 | ||||||||||||||||||||||
Indirect vehicle | 437 | 436 | 501 | 463 | 499 | 1,837 | 1,853 | ||||||||||||||||||||||
Consumer | 104 | 86 | 141 | 393 | 117 | 724 | 473 | ||||||||||||||||||||||
Total recoveries | 3,263 | 1,674 | 4,196 | 2,249 | 1,497 | 11,382 | 13,276 | ||||||||||||||||||||||
Total net charge-offs | 3,179 | 2,483 | 2,228 | 1,339 | 3,288 | 9,229 | 3,935 | ||||||||||||||||||||||
Allowance for credit losses, balance at the end of the period | 141,842 | 142,399 | 138,333 | 137,732 | 131,508 | 141,842 | 131,508 | ||||||||||||||||||||||
Allowance for unfunded credit commitments | (2,476 | ) | (2,871 | ) | (2,719 | ) | (3,239 | ) | (3,368 | ) | (2,476 | ) | (3,368 | ) | |||||||||||||||
Allowance for loan and lease losses, balance at the end of the period | $ | 139,366 | $ | 139,528 | $ | 135,614 | $ | 134,493 | $ | 128,140 | $ | 139,366 | $ | 128,140 | |||||||||||||||
Total loans, excluding loans held for sale | $ | 12,768,803 | $ | 12,540,696 | $ | 10,197,887 | $ | 9,961,348 | $ | 9,793,998 | $ | 12,768,803 | $ | 9,793,998 | |||||||||||||||
Average loans, excluding loans held for sale | 12,503,594 | 11,071,267 | 10,062,187 | 9,772,346 | 9,537,647 | 10,857,460 | 9,147,279 | ||||||||||||||||||||||
Allowance for loan and lease losses to total loans, excluding loans held for sale | 1.09 | % | 1.11 | % | 1.33 | % | 1.35 | % | 1.31 | % | 1.09 | % | 1.31 | % | |||||||||||||||
Net loan charge-offs to average loans, excluding loans held for sale (annualized) | 0.10 | 0.09 | 0.09 | 0.06 | 0.14 | 0.09 | 0.04 |
12/31/2016 | 9/30/2016 | 6/30/2016 | 3/31/2016 | 12/31/2015 | ||||||||||||||||
Commercial related loans: | ||||||||||||||||||||
General reserve | $ | 120,489 | $ | 112,653 | $ | 108,972 | $ | 98,001 | $ | 94,164 | ||||||||||
Specific reserve | 3,243 | 9,698 | 12,205 | 20,995 | 16,173 | |||||||||||||||
Consumer related reserve | 15,634 | 17,177 | 14,437 | 15,497 | 17,803 | |||||||||||||||
Total allowance for loan and lease losses | $ | 139,366 | $ | 139,528 | $ | 135,614 | $ | 134,493 | $ | 128,140 |
• | 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 | $ | 11,130 | $ | 13,924 | $ | 49,356 | $ | 74,410 | ||||||||
Purchases | 15,746 | 4,281 | (7,904 | ) | 12,123 | |||||||||||
Recoveries | 1,295 | — | — | 1,295 | ||||||||||||
Accretion | — | (2,709 | ) | (4,854 | ) | (7,563 | ) | |||||||||
Transfer | (554 | ) | 554 | — | — | |||||||||||
Balance at end of period | $ | 27,617 | $ | 16,050 | $ | 36,598 | $ | 80,265 |
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 |
12/31/2016 | 9/30/2016 | 6/30/2016 | 3/31/2016 | 12/31/2015 | ||||||||||||||||
Securities available for sale: | ||||||||||||||||||||
Fair value | ||||||||||||||||||||
Government sponsored agencies and enterprises | $ | 23,415 | $ | 53,968 | $ | 54,457 | $ | 64,762 | $ | 64,611 | ||||||||||
States and political subdivisions | 391,365 | 410,737 | 400,948 | 398,024 | 396,367 | |||||||||||||||
Mortgage-backed securities | 1,076,692 | 1,173,330 | 785,367 | 834,559 | 893,656 | |||||||||||||||
Corporate bonds | 193,895 | 210,193 | 225,525 | 224,530 | 219,628 | |||||||||||||||
Equity securities | 10,828 | 11,128 | 11,098 | 10,969 | 10,761 | |||||||||||||||
Total fair value | $ | 1,696,195 | $ | 1,859,356 | $ | 1,477,395 | $ | 1,532,844 | $ | 1,585,023 | ||||||||||
Amortized cost | ||||||||||||||||||||
Government sponsored agencies and enterprises | $ | 23,267 | $ | 53,456 | $ | 53,674 | $ | 63,600 | $ | 63,805 | ||||||||||
States and political subdivisions | 376,541 | 383,041 | 369,816 | 371,006 | 373,285 | |||||||||||||||
Mortgage-backed securities | 1,080,693 | 1,160,796 | 769,109 | 820,825 | 888,325 | |||||||||||||||
Corporate bonds | 193,164 | 208,940 | 224,730 | 225,657 | 222,784 | |||||||||||||||
Equity securities | 11,000 | 10,932 | 10,872 | 10,814 | 10,757 | |||||||||||||||
Total amortized cost | $ | 1,684,665 | $ | 1,817,165 | $ | 1,428,201 | $ | 1,491,902 | $ | 1,558,956 | ||||||||||
Unrealized gain (loss) | ||||||||||||||||||||
Government sponsored agencies and enterprises | $ | 148 | $ | 512 | $ | 783 | $ | 1,162 | $ | 806 | ||||||||||
States and political subdivisions | 14,824 | 27,696 | 31,132 | 27,018 | 23,082 | |||||||||||||||
Mortgage-backed securities | (4,001 | ) | 12,534 | 16,258 | 13,734 | 5,331 | ||||||||||||||
Corporate bonds | 731 | 1,253 | 795 | (1,127 | ) | (3,156 | ) | |||||||||||||
Equity securities | (172 | ) | 196 | 226 | 155 | 4 | ||||||||||||||
Total unrealized gain | $ | 11,530 | $ | 42,191 | $ | 49,194 | $ | 40,942 | $ | 26,067 | ||||||||||
Securities held to maturity, at cost: | ||||||||||||||||||||
States and political subdivisions | $ | 910,608 | $ | 939,491 | $ | 960,784 | $ | 986,340 | $ | 1,016,519 | ||||||||||
Mortgage-backed securities | 159,142 | 175,771 | 190,631 | 205,570 | 214,291 | |||||||||||||||
Total amortized cost | $ | 1,069,750 | $ | 1,115,262 | $ | 1,151,415 | $ | 1,191,910 | $ | 1,230,810 |
12/31/2016 | 9/30/2016 | 6/30/2016 | 3/31/2016 | 12/31/2015 | |||||||||||||||||||||||||||||||
Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||||||||||||||||||
Low cost deposits: | |||||||||||||||||||||||||||||||||||
Non-interest bearing deposits | $ | 6,408,169 | 46 | % | $ | 6,410,334 | 45 | % | $ | 4,775,364 | 42 | % | $ | 4,667,410 | 40 | % | $ | 4,627,184 | 40 | % | |||||||||||||||
Money market, NOW and interest bearing deposits | 4,543,004 | 32 | 4,660,407 | 33 | 3,771,111 | 33 | 4,048,054 | 35 | 4,144,633 | 36 | |||||||||||||||||||||||||
Savings deposits | 1,135,992 | 8 | 1,147,900 | 8 | 1,021,845 | 9 | 991,300 | 9 | 974,555 | 8 | |||||||||||||||||||||||||
Total low cost deposits | 12,087,165 | 86 | 12,218,641 | 86 | 9,568,320 | 84 | 9,706,764 | 84 | 9,746,372 | 84 | |||||||||||||||||||||||||
Certificates of deposit: | |||||||||||||||||||||||||||||||||||
Certificates of deposit | 1,225,102 | 9 | 1,298,186 | 9 | 1,220,562 | 11 | 1,255,457 | 11 | 1,244,292 | 11 | |||||||||||||||||||||||||
Brokered certificates of deposit | 798,181 | 5 | 762,439 | 5 | 647,214 | 5 | 571,605 | 5 | 514,551 | 5 | |||||||||||||||||||||||||
Total certificates of deposit | 2,023,283 | 14 | 2,060,625 | 14 | 1,867,776 | 16 | 1,827,062 | 16 | 1,758,843 | 16 | |||||||||||||||||||||||||
Total deposits | $ | 14,110,448 | 100 | % | $ | 14,279,266 | 100 | % | $ | 11,436,096 | 100 | % | $ | 11,533,826 | 100 | % | $ | 11,505,215 | 100 | % | |||||||||||||||
Change from prior quarter | -1.2 | % | +24.9 | % | -0.8 | % | +0.2 | % | +2.2 | % | |||||||||||||||||||||||||
Change from same quarter one year ago | +22.6 | % | +26.9 | % | +5.3 | % | +4.7 | % | +4.7 | % |
4Q16 | 3Q16 | 2Q16 | 1Q16 | 4Q15 | |||||||||||||||||||||||||||||||
Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||||||||||||||||||
Low cost deposits: | |||||||||||||||||||||||||||||||||||
Non-interest bearing deposits | $ | 6,454,025 | 45 | % | $ | 5,524,043 | 43 | % | $ | 4,806,692 | 42 | % | $ | 4,606,008 | 40 | % | $ | 4,617,076 | 40 | % | |||||||||||||||
Money market, NOW and interest bearing deposits | 4,628,698 | 33 | 4,161,913 | 33 | 3,836,134 | 33 | 4,109,150 | 36 | 4,214,099 | 37 | |||||||||||||||||||||||||
Savings deposits | 1,140,926 | 8 | 1,080,609 | 8 | 1,006,902 | 9 | 984,019 | 9 | 959,049 | 8 | |||||||||||||||||||||||||
Total low cost deposits | 12,223,649 | 86 | 10,766,565 | 84 | 9,649,728 | 84 | 9,699,177 | 85 | 9,790,224 | 85 | |||||||||||||||||||||||||
Certificates of deposit: | |||||||||||||||||||||||||||||||||||
Certificates of deposit | 1,263,675 | 9 | 1,257,959 | 10 | 1,237,198 | 11 | 1,237,971 | 11 | 1,245,947 | 11 | |||||||||||||||||||||||||
Brokered certificates of deposit | 779,411 | 5 | 702,030 | 6 | 598,702 | 5 | 534,910 | 4 | 492,839 | 4 | |||||||||||||||||||||||||
Total certificates of deposit | 2,043,086 | 14 | 1,959,989 | 16 | 1,835,900 | 16 | 1,772,881 | 15 | 1,738,786 | 15 | |||||||||||||||||||||||||
Total deposits | $ | 14,266,735 | 100 | % | $ | 12,726,554 | 100 | % | $ | 11,485,628 | 100 | % | $ | 11,472,058 | 100 | % | $ | 11,529,010 | 100 | % | |||||||||||||||
Change from prior quarter | +12.1 | % | +10.8 | % | +0.1 | % | -0.5 | % | +2.5 | % | |||||||||||||||||||||||||
Change from same quarter one year ago | +23.7 | % | +13.2 | % | +5.4 | % | +4.4 | % | +2.9 | % |
(Dollars in thousands) | 12/31/2016 | 9/30/2016 | 6/30/2016 | 3/31/2016 | 12/31/2015 | |||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and due from banks | $ | 364,783 | $ | 351,009 | $ | 303,037 | $ | 271,732 | $ | 307,869 | ||||||||||
Interest earning deposits with banks | 98,686 | 125,250 | 123,086 | 113,785 | 73,572 | |||||||||||||||
Total cash and cash equivalents | 463,469 | 476,259 | 426,123 | 385,517 | 381,441 | |||||||||||||||
Investment securities: | ||||||||||||||||||||
Securities available for sale, at fair value | 1,696,195 | 1,859,356 | 1,477,395 | 1,532,844 | 1,585,023 | |||||||||||||||
Securities held to maturity, at amortized cost | 1,069,750 | 1,115,262 | 1,151,415 | 1,191,910 | 1,230,810 | |||||||||||||||
Non-marketable securities - FHLB and FRB Stock | 143,276 | 146,209 | 130,232 | 121,750 | 114,233 | |||||||||||||||
Total investment securities | 2,909,221 | 3,120,827 | 2,759,042 | 2,846,504 | 2,930,066 | |||||||||||||||
Loans held for sale | 716,883 | 899,412 | 843,379 | 632,196 | 744,727 | |||||||||||||||
Loans: | ||||||||||||||||||||
Total loans, excluding purchased credit-impaired loans | 12,605,726 | 12,379,358 | 10,061,076 | 9,820,903 | 9,652,592 | |||||||||||||||
Purchased credit-impaired loans | 163,077 | 161,338 | 136,811 | 140,445 | 141,406 | |||||||||||||||
Total loans | 12,768,803 | 12,540,696 | 10,197,887 | 9,961,348 | 9,793,998 | |||||||||||||||
Less: Allowance for loan and lease losses | 139,366 | 139,528 | 135,614 | 134,493 | 128,140 | |||||||||||||||
Net loans | 12,629,437 | 12,401,168 | 10,062,273 | 9,826,855 | 9,665,858 | |||||||||||||||
Lease investments, net | 311,327 | 277,647 | 233,320 | 216,046 | 211,687 | |||||||||||||||
Premises and equipment, net | 293,910 | 283,112 | 243,319 | 238,578 | 236,013 | |||||||||||||||
Cash surrender value of life insurance | 200,945 | 199,628 | 138,657 | 137,807 | 136,953 | |||||||||||||||
Goodwill | 1,001,038 | 993,799 | 725,039 | 725,068 | 725,070 | |||||||||||||||
Other intangibles | 62,959 | 65,395 | 41,569 | 43,186 | 44,812 | |||||||||||||||
Mortgage servicing rights, at fair value | 238,011 | 154,730 | 134,969 | 145,800 | 168,162 | |||||||||||||||
Other real estate owned, net | 26,279 | 33,105 | 27,663 | 28,309 | 31,553 | |||||||||||||||
Other real estate owned related to FDIC transactions | 5,006 | 5,177 | 8,356 | 10,397 | 10,717 | |||||||||||||||
Other assets | 443,832 | 431,623 | 352,081 | 339,390 | 297,948 | |||||||||||||||
Total assets | $ | 19,302,317 | $ | 19,341,882 | $ | 15,995,790 | $ | 15,575,653 | $ | 15,585,007 | ||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||
Liabilities | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Non-interest bearing | $ | 6,408,169 | $ | 6,410,334 | $ | 4,775,364 | $ | 4,667,410 | $ | 4,627,184 | ||||||||||
Interest bearing | 7,702,279 | 7,868,932 | 6,660,732 | 6,866,416 | 6,878,031 | |||||||||||||||
Total deposits | 14,110,448 | 14,279,266 | 11,436,096 | 11,533,826 | 11,505,215 | |||||||||||||||
Short-term borrowings | 1,569,288 | 1,496,319 | 1,246,994 | 884,101 | 1,005,737 | |||||||||||||||
Long-term borrowings | 311,790 | 311,645 | 518,545 | 439,615 | 400,274 | |||||||||||||||
Junior subordinated notes issued to capital trusts | 210,668 | 209,159 | 185,925 | 185,820 | 186,164 | |||||||||||||||
Accrued expenses and other liabilities | 520,914 | 482,085 | 451,695 | 409,406 | 400,333 | |||||||||||||||
Total liabilities | 16,723,108 | 16,778,474 | 13,839,255 | 13,452,768 | 13,497,723 | |||||||||||||||
Stockholders' Equity | ||||||||||||||||||||
Preferred stock | 115,572 | 116,507 | 115,280 | 115,280 | 115,280 | |||||||||||||||
Common stock | 856 | 855 | 757 | 756 | 756 | |||||||||||||||
Additional paid-in capital | 1,678,826 | 1,674,341 | 1,288,777 | 1,284,438 | 1,280,870 | |||||||||||||||
Retained earnings | 838,892 | 809,769 | 783,468 | 756,272 | 731,812 | |||||||||||||||
Accumulated other comprehensive income | 5,190 | 23,763 | 28,731 | 24,687 | 15,777 | |||||||||||||||
Treasury stock | (60,384 | ) | (62,084 | ) | (60,732 | ) | (59,863 | ) | (58,504 | ) | ||||||||||
Controlling interest stockholders' equity | 2,578,952 | 2,563,151 | 2,156,281 | 2,121,570 | 2,085,991 | |||||||||||||||
Noncontrolling interest | 257 | 257 | 254 | 1,315 | 1,293 | |||||||||||||||
Total stockholders' equity | 2,579,209 | 2,563,408 | 2,156,535 | 2,122,885 | 2,087,284 | |||||||||||||||
Total liabilities and stockholders' equity | $ | 19,302,317 | $ | 19,341,882 | $ | 15,995,790 | $ | 15,575,653 | $ | 15,585,007 |
Year Ended | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
(Dollars in thousands, except per share data) | 4Q16 | 3Q16 | 2Q16 | 1Q16 | 4Q15 | 2016 | 2015 | ||||||||||||||||||||||
Interest income: | |||||||||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||
Taxable | $ | 134,048 | $ | 118,675 | $ | 110,231 | $ | 104,923 | $ | 106,137 | $ | 467,877 | $ | 404,324 | |||||||||||||||
Nontaxable | 2,947 | 2,846 | 2,741 | 2,586 | 2,602 | 11,120 | 9,318 | ||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||||||
Taxable | 9,362 | 8,844 | 7,799 | 9,566 | 9,708 | 35,571 | 39,299 | ||||||||||||||||||||||
Nontaxable | 10,220 | 10,382 | 10,644 | 10,776 | 10,969 | 42,022 | 40,974 | ||||||||||||||||||||||
Federal funds sold | — | — | — | — | 1 | — | 1 | ||||||||||||||||||||||
Other interest earning accounts | 157 | 164 | 125 | 141 | 110 | 587 | 318 | ||||||||||||||||||||||
Total interest income | 156,734 | 140,911 | 131,540 | 127,992 | 129,527 | 557,177 | 494,234 | ||||||||||||||||||||||
Interest expense: | |||||||||||||||||||||||||||||
Deposits | 7,324 | 6,681 | 5,952 | 5,622 | 5,357 | 25,579 | 19,658 | ||||||||||||||||||||||
Short-term borrowings | 1,472 | 1,092 | 910 | 721 | 385 | 4,195 | 1,412 | ||||||||||||||||||||||
Long-term borrowings and junior subordinated notes | 2,724 | 2,367 | 2,076 | 2,345 | 2,016 | 9,512 | 7,558 | ||||||||||||||||||||||
Total interest expense | 11,520 | 10,140 | 8,938 | 8,688 | 7,758 | 39,286 | 28,628 | ||||||||||||||||||||||
Net interest income | 145,214 | 130,771 | 122,602 | 119,304 | 121,769 | 517,891 | 465,606 | ||||||||||||||||||||||
Provision for credit losses | 2,622 | 6,549 | 2,829 | 7,563 | 6,758 | 19,563 | 21,386 | ||||||||||||||||||||||
Net interest income after provision for credit losses | 142,592 | 124,222 | 119,773 | 111,741 | 115,011 | 498,328 | 444,220 | ||||||||||||||||||||||
Non-interest income: | |||||||||||||||||||||||||||||
Mortgage banking revenue | 32,277 | 49,095 | 39,615 | 27,482 | 26,542 | 148,469 | 117,426 | ||||||||||||||||||||||
Lease financing revenue, net | 19,868 | 18,864 | 15,708 | 19,046 | 15,937 | 73,486 | 76,581 | ||||||||||||||||||||||
Commercial deposit and treasury management fees | 14,237 | 12,957 | 11,548 | 11,878 | 11,711 | 50,620 | 45,283 | ||||||||||||||||||||||
Trust and asset management fees | 8,442 | 8,244 | 8,236 | 7,950 | 6,077 | 32,872 | 23,545 | ||||||||||||||||||||||
Card fees | 4,340 | 4,161 | 4,045 | 3,525 | 3,651 | 16,071 | 15,322 | ||||||||||||||||||||||
Capital markets and international banking service fees | 4,021 | 3,313 | 2,771 | 3,227 | 2,355 | 13,332 | 8,148 | ||||||||||||||||||||||
Consumer and other deposit service fees | 3,563 | 3,559 | 3,161 | 3,025 | 3,440 | 13,308 | 13,282 | ||||||||||||||||||||||
Brokerage fees | 887 | 1,294 | 1,315 | 1,158 | 1,252 | 4,654 | 5,754 | ||||||||||||||||||||||
Loan service fees | 1,952 | 1,792 | 1,961 | 1,752 | 1,890 | 7,457 | 6,259 | ||||||||||||||||||||||
Increase in cash surrender value of life insurance | 1,316 | 1,055 | 850 | 854 | 864 | 4,075 | 3,391 | ||||||||||||||||||||||
Net gain (loss) on investment securities | 178 | — | 269 | — | (3 | ) | 447 | (176 | ) | ||||||||||||||||||||
Net (loss) gain on disposal of other assets | (749 | ) | 5 | (2 | ) | (48 | ) | — | (794 | ) | (2 | ) | |||||||||||||||||
Other operating income | 2,491 | 4,048 | 2,523 | 1,844 | 1,909 | 10,906 | 7,280 | ||||||||||||||||||||||
Total non-interest income | 92,823 | 108,387 | 92,000 | 81,693 | 75,625 | 374,903 | 322,093 | ||||||||||||||||||||||
Non-interest expense: | |||||||||||||||||||||||||||||
Salaries and employee benefits expense | 108,428 | 111,478 | 95,004 | 85,591 | 84,709 | 400,501 | 343,531 | ||||||||||||||||||||||
Occupancy and equipment expense | 15,689 | 14,766 | 13,415 | 13,260 | 12,935 | 57,130 | 50,510 | ||||||||||||||||||||||
Computer services and telecommunication expense | 11,800 | 12,836 | 9,777 | 9,055 | 8,445 | 43,468 | 34,453 | ||||||||||||||||||||||
Advertising and marketing expense | 3,045 | 3,084 | 2,964 | 2,878 | 2,551 | 11,971 | 10,072 | ||||||||||||||||||||||
Professional and legal expense | 2,509 | 4,460 | 3,321 | 2,589 | 4,169 | 12,879 | 11,053 | ||||||||||||||||||||||
Other intangible amortization expense | 2,388 | 1,674 | 1,617 | 1,626 | 1,546 | 7,305 | 6,115 | ||||||||||||||||||||||
Branch exit and facilities impairment charges | — | (2,908 | ) | 155 | 44 | 616 | (2,709 | ) | 8,515 | ||||||||||||||||||||
Net (gain) loss recognized on other real estate owned and other related expense | (790 | ) | (721 | ) | 258 | (346 | ) | (729 | ) | (1,599 | ) | 1,468 | |||||||||||||||||
Prepayment fees on interest bearing liabilities | — | — | — | — | — | — | 85 | ||||||||||||||||||||||
Other operating expenses | 22,691 | 25,716 | 21,395 | 21,103 | 12,989 | 90,905 | 68,352 | ||||||||||||||||||||||
Total non-interest expense | 165,760 | 170,385 | 147,906 | 135,800 | 127,231 | 619,851 | 534,154 | ||||||||||||||||||||||
Income before income taxes | 69,655 | 62,224 | 63,867 | 57,634 | 63,405 | 253,380 | 232,159 | ||||||||||||||||||||||
Income tax expense | 22,464 | 17,805 | 20,455 | 18,520 | 19,798 | 79,244 | 73,211 | ||||||||||||||||||||||
Net income | 47,191 | 44,419 | 43,412 | 39,114 | 43,607 | 174,136 | 158,948 | ||||||||||||||||||||||
Dividends on preferred shares | 2,005 | 2,004 | 2,000 | 2,000 | 2,000 | 8,009 | 8,000 | ||||||||||||||||||||||
Net income available to common stockholders | $ | 45,186 | $ | 42,415 | $ | 41,412 | $ | 37,114 | $ | 41,607 | $ | 166,127 | $ | 150,948 |
Year Ended | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
4Q16 | 3Q16 | 2Q16 | 1Q16 | 4Q15 | 2016 | 2015 | |||||||||||||||||||||||
Common share data: | |||||||||||||||||||||||||||||
Basic earnings per common share | $ | 0.54 | $ | 0.55 | $ | 0.56 | $ | 0.51 | $ | 0.57 | $ | 2.16 | $ | 2.03 | |||||||||||||||
Diluted earnings per common share | 0.53 | 0.54 | 0.56 | 0.50 | 0.56 | 2.13 | 2.02 | ||||||||||||||||||||||
Weighted average common shares outstanding for basic earnings per common share | 83,484,899 | 77,506,885 | 73,475,258 | 73,330,731 | 73,296,602 | 76,968,823 | 74,177,574 | ||||||||||||||||||||||
Weighted average common shares outstanding for diluted earnings per common share | 84,674,181 | 78,683,170 | 74,180,374 | 73,966,935 | 73,953,165 | 77,976,121 | 74,849,030 | ||||||||||||||||||||||
Common shares outstanding (at end of period) | 83,725,269 | 83,555,257 | 73,740,348 | 73,639,487 | 73,678,329 | 83,725,269 | 73,678,329 |
Selected Financial Data: | |||||||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
4Q16 | 3Q16 | 2Q16 | 1Q16 | 4Q15 | 2016 | 2015 | |||||||||||||||||||||||
Performance Ratios: | |||||||||||||||||||||||||||||
Annualized return on average assets | 0.98 | % | 1.02 | % | 1.11 | % | 1.02 | % | 1.13 | % | 1.03 | % | 1.07 | % | |||||||||||||||
Annualized operating return on average assets (1) | 1.07 | 1.20 | 1.15 | 1.09 | 1.06 | 1.13 | 1.09 | ||||||||||||||||||||||
Annualized return on average common equity | 7.36 | 7.67 | 8.27 | 7.52 | 8.48 | 7.69 | 7.77 | ||||||||||||||||||||||
Annualized operating return on average common equity (1) | 8.12 | 9.02 | 8.56 | 8.08 | 7.86 | 8.44 | 7.92 | ||||||||||||||||||||||
Annualized cash return on average tangible common equity (2) | 13.22 | 12.99 | 13.53 | 12.47 | 13.97 | 13.06 | 12.82 | ||||||||||||||||||||||
Annualized cash operating return on average tangible common equity (3) | 14.54 | 15.23 | 13.99 | 13.37 | 12.97 | 14.31 | 13.07 | ||||||||||||||||||||||
Net interest rate spread | 3.48 | 3.50 | 3.64 | 3.63 | 3.72 | 3.56 | 3.70 | ||||||||||||||||||||||
Cost of funds (4) | 0.28 | 0.28 | 0.27 | 0.27 | 0.24 | 0.28 | 0.23 | ||||||||||||||||||||||
Efficiency ratio (5) | 64.62 | 62.69 | 65.32 | 63.49 | 63.95 | 64.02 | 64.71 | ||||||||||||||||||||||
Annualized net non-interest expense to average assets (6) | 1.35 | 1.06 | 1.35 | 1.31 | 1.44 | 1.27 | 1.38 | ||||||||||||||||||||||
Core non-interest income to revenues (7) | 38.15 | 43.98 | 41.40 | 39.38 | 36.91 | 40.77 | 39.68 | ||||||||||||||||||||||
Net interest margin | 3.50 | 3.49 | 3.60 | 3.57 | 3.64 | 3.54 | 3.63 | ||||||||||||||||||||||
Tax equivalent effect | 0.17 | 0.19 | 0.21 | 0.22 | 0.22 | 0.19 | 0.21 | ||||||||||||||||||||||
Net interest margin - fully tax equivalent basis (8) | 3.67 | 3.68 | 3.81 | 3.79 | 3.86 | 3.73 | 3.84 | ||||||||||||||||||||||
Loans to deposits | 90.49 | 87.82 | 89.17 | 86.37 | 85.13 | 90.49 | 85.13 | ||||||||||||||||||||||
Asset Quality Ratios: | |||||||||||||||||||||||||||||
Non-performing loans (9) to total loans | 0.46 | % | 0.43 | % | 0.73 | % | 0.95 | % | 1.07 | % | 0.46 | % | 1.07 | % | |||||||||||||||
Non-performing assets (9) to total assets | 0.45 | 0.45 | 0.64 | 0.79 | 0.87 | 0.45 | 0.87 | ||||||||||||||||||||||
Allowance for loan and lease losses to non-performing loans (9) | 234.81 | 258.82 | 181.46 | 142.00 | 122.43 | 234.81 | 122.43 | ||||||||||||||||||||||
Allowance for loan and lease losses to total loans | 1.09 | 1.11 | 1.33 | 1.35 | 1.31 | 1.09 | 1.31 | ||||||||||||||||||||||
Net loan charge-offs to average loans, excluding loans held for sale (annualized) | 0.10 | 0.09 | 0.09 | 0.06 | 0.14 | 0.09 | 0.04 | ||||||||||||||||||||||
Capital Ratios: | |||||||||||||||||||||||||||||
Tangible equity to tangible assets (10) | 8.42 | % | 8.34 | % | 9.21 | % | 9.24 | % | 8.99 | % | 8.42 | % | 8.99 | % | |||||||||||||||
Tangible common equity to tangible assets (11) | 7.79 | 7.71 | 8.46 | 8.46 | 8.21 | 7.79 | 8.21 | ||||||||||||||||||||||
Tangible common equity to risk weighted assets (12) | 8.78 | 8.83 | 9.75 | 9.54 | 9.34 | 8.78 | 9.34 | ||||||||||||||||||||||
Total capital (to risk-weighted assets) (13) | 11.59 | 11.66 | 12.81 | 12.65 | 12.54 | 11.59 | 12.54 | ||||||||||||||||||||||
Tier 1 capital (to risk-weighted assets) (13) | 9.37 | 9.40 | 11.77 | 11.60 | 11.54 | 9.37 | 11.54 | ||||||||||||||||||||||
Common equity tier 1 capital (to risk-weighted assets) (13) | 8.70 | 8.71 | 9.52 | 9.33 | 9.27 | 8.70 | 9.27 | ||||||||||||||||||||||
Tier 1 capital (to average assets) (13) | 8.38 | 9.29 | 10.41 | 10.38 | 10.40 | 8.38 | 10.40 | ||||||||||||||||||||||
Per Share Data: | |||||||||||||||||||||||||||||
Book value per common share (14) | $ | 29.43 | $ | 29.28 | $ | 27.68 | $ | 27.26 | $ | 26.77 | $ | 29.43 | $ | 26.77 | |||||||||||||||
Less: goodwill and other intangible assets, net of benefit, per common share | 12.45 | 12.40 | 10.20 | 10.22 | 10.24 | 12.45 | 10.24 | ||||||||||||||||||||||
Tangible book value per common share (15) | $ | 16.98 | $ | 16.88 | $ | 17.48 | $ | 17.04 | $ | 16.53 | $ | 16.98 | $ | 16.53 | |||||||||||||||
Cash dividends per common share | $ | 0.19 | $ | 0.19 | $ | 0.19 | $ | 0.17 | $ | 0.17 | $ | 0.74 | $ | 0.65 |
(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 non-interest 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. |
12/31/2016 | 9/30/2016 | 6/30/2016 | 3/31/2016 | 12/31/2015 | ||||||||||||||||
Stockholders' equity - as reported | $ | 2,579,209 | $ | 2,563,408 | $ | 2,156,535 | $ | 2,122,885 | $ | 2,087,284 | ||||||||||
Less: goodwill | 1,001,038 | 993,799 | 725,039 | 725,068 | 725,070 | |||||||||||||||
Less: other intangible assets, net of tax benefit | 40,923 | 42,507 | 27,020 | 28,071 | 29,128 | |||||||||||||||
Tangible equity | $ | 1,537,248 | $ | 1,527,102 | $ | 1,404,476 | $ | 1,369,746 | $ | 1,333,086 |
12/31/2016 | 9/30/2016 | 6/30/2016 | 3/31/2016 | 12/31/2015 | ||||||||||||||||
Total assets - as reported | $ | 19,302,317 | $ | 19,341,882 | $ | 15,995,790 | $ | 15,575,653 | $ | 15,585,007 | ||||||||||
Less: goodwill | 1,001,038 | 993,799 | 725,039 | 725,068 | 725,070 | |||||||||||||||
Less: other intangible assets, net of tax benefit | 40,923 | 42,507 | 27,020 | 28,071 | 29,128 | |||||||||||||||
Tangible assets | $ | 18,260,356 | $ | 18,305,576 | $ | 15,243,731 | $ | 14,822,514 | $ | 14,830,809 |
12/31/2016 | 9/30/2016 | 6/30/2016 | 3/31/2016 | 12/31/2015 | ||||||||||||||||
Common stockholders' equity - as reported | $ | 2,463,637 | $ | 2,446,901 | $ | 2,041,255 | $ | 2,007,605 | $ | 1,972,004 | ||||||||||
Less: goodwill | 1,001,038 | 993,799 | 725,039 | 725,068 | 725,070 | |||||||||||||||
Less: other intangible assets, net of tax benefit | 40,923 | 42,507 | 27,020 | 28,071 | 29,128 | |||||||||||||||
Tangible common equity | $ | 1,421,676 | $ | 1,410,595 | $ | 1,289,196 | $ | 1,254,466 | $ | 1,217,806 |
Year Ended | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
4Q16 | 3Q16 | 2Q16 | 1Q16 | 4Q15 | 2016 | 2015 | |||||||||||||||||||||||
Average common stockholders' equity | $ | 2,441,809 | $ | 2,201,095 | $ | 2,014,822 | $ | 1,984,379 | $ | 1,945,772 | $ | 2,161,405 | $ | 1,943,632 | |||||||||||||||
Less: average goodwill | 994,053 | 835,894 | 725,011 | 725,070 | 711,669 | 820,526 | 711,559 | ||||||||||||||||||||||
Less: average other intangible assets, net of tax benefit | 41,471 | 32,744 | 27,437 | 28,511 | 23,826 | 32,566 | 23,743 | ||||||||||||||||||||||
Average tangible common equity | $ | 1,406,285 | $ | 1,332,457 | $ | 1,262,374 | $ | 1,230,798 | $ | 1,210,277 | $ | 1,308,313 | $ | 1,208,330 |
Year Ended | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
4Q16 | 3Q16 | 2Q16 | 1Q16 | 4Q15 | 2016 | 2015 | |||||||||||||||||||||||
Net income available to common stockholders - as reported | $ | 45,186 | $ | 42,415 | $ | 41,412 | $ | 37,114 | $ | 41,607 | $ | 166,127 | $ | 150,948 | |||||||||||||||
Add: other intangible amortization expense, net of tax benefit | 1,552 | 1,088 | 1,051 | 1,057 | 1,005 | 4,748 | 3,975 | ||||||||||||||||||||||
Net cash flow available to common stockholders | $ | 46,738 | $ | 43,503 | $ | 42,463 | $ | 38,171 | $ | 42,612 | $ | 170,875 | $ | 154,923 |
Year Ended | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
4Q16 | 3Q16 | 2Q16 | 1Q16 | 4Q15 | 2016 | 2015 | |||||||||||||||||||||||
Net income - as reported | $ | 47,191 | $ | 44,419 | $ | 43,412 | $ | 39,114 | $ | 43,607 | $ | 174,136 | $ | 158,948 | |||||||||||||||
Less non-core items: | |||||||||||||||||||||||||||||
Net gain (loss) on investment securities | 178 | — | 269 | — | (3 | ) | 447 | (176 | ) | ||||||||||||||||||||
Net (loss) gain on disposal of other assets | (749 | ) | 5 | (2 | ) | (48 | ) | — | (794 | ) | (2 | ) | |||||||||||||||||
Increase in market value of assets held in trust for deferred compensation - other operating income | 141 | 711 | 480 | 8 | 565 | 1,340 | 6 | ||||||||||||||||||||||
Merger related and repositioning expenses | (6,491 | ) | (11,368 | ) | (2,566 | ) | (3,287 | ) | 4,186 | (23,712 | ) | (5,506 | ) | ||||||||||||||||
Branch exit and facilities impairment charges | — | — | (155 | ) | — | — | (155 | ) | — | ||||||||||||||||||||
Prepayment fees on interest bearing liabilities | — | — | — | — | — | — | (85 | ) | |||||||||||||||||||||
Contribution to MB Financial Charitable Foundation | — | (4,000 | ) | — | — | — | (4,000 | ) | — | ||||||||||||||||||||
Increase in market value of assets held in trust for deferred compensation - other operating expense | (141 | ) | (711 | ) | (480 | ) | (8 | ) | (565 | ) | (1,340 | ) | (6 | ) | |||||||||||||||
Total non-core items | (7,062 | ) | (15,363 | ) | (2,454 | ) | (3,335 | ) | 4,183 | (28,214 | ) | (5,769 | ) | ||||||||||||||||
Income tax expense on non-core items | (2,406 | ) | (6,074 | ) | (1,003 | ) | (577 | ) | 1,140 | (10,060 | ) | (2,809 | ) | ||||||||||||||||
Income tax benefit resulting from adoption of new stock-based compensation guidance | — | (1,793 | ) | — | — | — | (1,793 | ) | — | ||||||||||||||||||||
Non-core items, net of tax | (4,656 | ) | (7,496 | ) | (1,451 | ) | (2,758 | ) | 3,043 | (16,361 | ) | (2,960 | ) | ||||||||||||||||
Operating earnings | 51,847 | 51,915 | 44,863 | 41,872 | 40,564 | 190,497 | 161,908 | ||||||||||||||||||||||
Dividends on preferred shares | 2,005 | 2,004 | 2,000 | 2,000 | 2,000 | 8,009 | 8,000 | ||||||||||||||||||||||
Operating earnings available to common stockholders | $ | 49,842 | $ | 49,911 | $ | 42,863 | $ | 39,872 | $ | 38,564 | $ | 182,488 | $ | 153,908 | |||||||||||||||
Diluted operating earnings per common share | $ | 0.59 | $ | 0.63 | $ | 0.58 | $ | 0.54 | $ | 0.52 | $ | 2.34 | $ | 2.06 | |||||||||||||||
Weighted average common shares outstanding for diluted operating earnings per common share | 84,674,181 | 78,683,170 | 74,180,374 | 73,966,935 | 73,953,165 | 77,976,121 | 74,849,030 |
Year Ended | ||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||
4Q16 | 3Q16 | 2Q16 | 1Q16 | 4Q15 | 2016 | 2015 | ||||||||||||||||||||||
Non-interest expense | $ | 165,760 | $ | 170,385 | $ | 147,906 | $ | 135,800 | $ | 127,231 | $ | 619,851 | $ | 534,154 | ||||||||||||||
Less merger related and repositioning expenses | 6,491 | 11,368 | 2,566 | 3,287 | (4,186 | ) | 23,712 | 5,506 | ||||||||||||||||||||
Less prepayment fees on interest bearing liabilities | — | — | — | — | — | — | 85 | |||||||||||||||||||||
Less branch exit and facilities impairment charges | — | — | 155 | — | — | 155 | — | |||||||||||||||||||||
Less contribution to MB Financial Charitable Foundation | — | 4,000 | — | — | — | 4,000 | — | |||||||||||||||||||||
Less increase in market value of assets held in trust for deferred compensation | 141 | 711 | 480 | 8 | 565 | 1,340 | 6 | |||||||||||||||||||||
Non-interest expense - as adjusted | $ | 159,128 | $ | 154,306 | $ | 144,705 | $ | 132,505 | $ | 130,852 | $ | 590,644 | $ | 528,557 | ||||||||||||||
Net interest income | $ | 145,214 | $ | 130,771 | $ | 122,602 | $ | 119,304 | $ | 121,769 | $ | 517,891 | $ | 465,606 | ||||||||||||||
Tax equivalent adjustment | 7,090 | 7,122 | 7,208 | 7,195 | 7,307 | 28,616 | 27,080 | |||||||||||||||||||||
Net interest income on a fully tax equivalent basis | 152,304 | 137,893 | 129,810 | 126,499 | 129,076 | 546,507 | 492,686 | |||||||||||||||||||||
Plus non-interest income | 92,823 | 108,387 | 92,000 | 81,693 | 75,625 | 374,903 | 322,093 | |||||||||||||||||||||
Plus tax equivalent adjustment on the increase in cash surrender value of life insurance | 709 | 568 | 458 | 460 | 465 | 2,194 | 1,826 | |||||||||||||||||||||
Less net gain (loss) on investment securities | 178 | — | 269 | — | (3 | ) | 447 | (176 | ) | |||||||||||||||||||
Less net (loss) gain on disposal of other assets | (749 | ) | 5 | (2 | ) | (48 | ) | — | (794 | ) | (2 | ) | ||||||||||||||||
Less increase in market value of assets held in trust for deferred compensation | 141 | 711 | 480 | 8 | 565 | 1,340 | 6 | |||||||||||||||||||||
Net interest income plus non-interest income - as adjusted | $ | 246,266 | $ | 246,132 | $ | 221,521 | $ | 208,692 | $ | 204,604 | $ | 922,611 | $ | 816,777 | ||||||||||||||
Efficiency ratio | 64.62 | % | 62.69 | % | 65.32 | % | 63.49 | % | 63.95 | % | 64.02 | % | 64.71 | % | ||||||||||||||
Efficiency ratio (without adjustments) | 69.64 | % | 71.24 | % | 68.92 | % | 67.56 | % | 64.46 | % | 69.43 | % | 67.81 | % |
Year Ended | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
4Q16 | 3Q16 | 2Q16 | 1Q16 | 4Q15 | 2016 | 2015 | |||||||||||||||||||||||
Non-interest expense | $ | 165,760 | $ | 170,385 | $ | 147,906 | $ | 135,800 | $ | 127,231 | $ | 619,851 | $ | 534,154 | |||||||||||||||
Less merger related and repositioning expenses | 6,491 | 11,368 | 2,566 | 3,287 | (4,186 | ) | 23,712 | 5,506 | |||||||||||||||||||||
Less prepayment fees on interest bearing liabilities | — | — | — | — | — | — | 85 | ||||||||||||||||||||||
Less branch exit and facilities impairment charges | — | — | 155 | — | — | 155 | — | ||||||||||||||||||||||
Less contribution to MB Financial Charitable Foundation | — | 4,000 | — | — | — | 4,000 | — | ||||||||||||||||||||||
Less increase in market value of assets held in trust for deferred compensation | 141 | 711 | 480 | 8 | 565 | 1,340 | 6 | ||||||||||||||||||||||
Non-interest expense - as adjusted | 159,128 | 154,306 | 144,705 | 132,505 | 130,852 | 590,644 | 528,557 | ||||||||||||||||||||||
Non-interest income | 92,823 | 108,387 | 92,000 | 81,693 | 75,625 | 374,903 | 322,093 | ||||||||||||||||||||||
Less net gain (loss) on investment securities | 178 | — | 269 | — | (3 | ) | 447 | (176 | ) | ||||||||||||||||||||
Less net (loss) gain on disposal of other assets | (749 | ) | 5 | (2 | ) | (48 | ) | — | (794 | ) | (2 | ) | |||||||||||||||||
Less increase in market value of assets held in trust for deferred compensation | 141 | 711 | 480 | 8 | 565 | 1,340 | 6 | ||||||||||||||||||||||
Non-interest income - as adjusted | 93,253 | 107,671 | 91,253 | 81,733 | 75,063 | 373,910 | 322,265 | ||||||||||||||||||||||
Less tax equivalent adjustment on the increase in cash surrender value of life insurance | 709 | 568 | 458 | 460 | 465 | 2,194 | 1,826 | ||||||||||||||||||||||
Net non-interest expense - as adjusted | $ | 65,166 | $ | 46,067 | $ | 52,994 | $ | 50,312 | $ | 55,324 | $ | 214,540 | $ | 204,466 | |||||||||||||||
Average assets | $ | 19,192,747 | $ | 17,248,431 | $ | 15,740,658 | $ | 15,487,565 | $ | 15,244,633 | $ | 16,924,472 | $ | 14,827,884 | |||||||||||||||
Annualized net non-interest expense - as adjusted to average assets | 1.35 | % | 1.06 | % | 1.35 | % | 1.31 | % | 1.44 | % | 1.27 | % | 1.38 | % | |||||||||||||||
Annualized net non-interest expense to average assets (without adjustments) | 1.51 | % | 1.43 | % | 1.43 | % | 1.41 | % | 1.34 | % | 1.45 | % | 1.43 | % |
Year Ended | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
4Q16 | 3Q16 | 2Q16 | 1Q16 | 4Q15 | 2016 | 2015 | |||||||||||||||||||||||
Non-interest income | $ | 92,823 | $ | 108,387 | $ | 92,000 | $ | 81,693 | $ | 75,625 | $ | 374,903 | $ | 322,093 | |||||||||||||||
Plus tax equivalent adjustment on the increase in cash surrender value of life insurance | 709 | 568 | 458 | 460 | 465 | 2,194 | 1,826 | ||||||||||||||||||||||
Less net gain (loss) on investment securities | 178 | — | 269 | — | (3 | ) | 447 | (176 | ) | ||||||||||||||||||||
Less net (loss) gain on disposal of other assets | (749 | ) | 5 | (2 | ) | (48 | ) | — | (794 | ) | (2 | ) | |||||||||||||||||
Less increase in market value of assets held in trust for deferred compensation | 141 | 711 | 480 | 8 | 565 | 1,340 | 6 | ||||||||||||||||||||||
Non-interest income - as adjusted | $ | 93,962 | $ | 108,239 | $ | 91,711 | $ | 82,193 | $ | 75,528 | $ | 376,104 | $ | 324,091 | |||||||||||||||
Net interest income | $ | 145,214 | $ | 130,771 | $ | 122,602 | $ | 119,304 | $ | 121,769 | $ | 517,891 | $ | 465,606 | |||||||||||||||
Tax equivalent adjustment | 7,090 | 7,122 | 7,208 | 7,195 | 7,307 | 28,616 | 27,080 | ||||||||||||||||||||||
Net interest income on a fully tax equivalent basis | 152,304 | 137,893 | 129,810 | 126,499 | 129,076 | 546,507 | 492,686 | ||||||||||||||||||||||
Plus non-interest income | 92,823 | 108,387 | 92,000 | 81,693 | 75,625 | 374,903 | 322,093 | ||||||||||||||||||||||
Plus tax equivalent adjustment on the increase in cash surrender value of life insurance | 709 | 568 | 458 | 460 | 465 | 2,194 | 1,826 | ||||||||||||||||||||||
Less net gain (loss) on investment securities | 178 | — | 269 | — | (3 | ) | 447 | (176 | ) | ||||||||||||||||||||
Less net (loss) gain on disposal of other assets | (749 | ) | 5 | (2 | ) | (48 | ) | — | (794 | ) | (2 | ) | |||||||||||||||||
Less increase in market value of assets held in trust for deferred compensation | 141 | 711 | 480 | 8 | 565 | 1,340 | 6 | ||||||||||||||||||||||
Total revenue - as adjusted and on a fully tax equivalent basis | $ | 246,266 | $ | 246,132 | $ | 221,521 | $ | 208,692 | $ | 204,604 | $ | 922,611 | $ | 816,777 | |||||||||||||||
Total revenue - unadjusted | $ | 238,037 | $ | 239,158 | $ | 214,602 | $ | 200,997 | $ | 197,394 | $ | 892,794 | $ | 787,699 | |||||||||||||||
Core non-interest income to revenues ratio | 38.15 | % | 43.98 | % | 41.40 | % | 39.38 | % | 36.91 | % | 40.77 | % | 39.68 | % | |||||||||||||||
Non-interest income to revenues ratio (without adjustments) | 39.00 | % | 45.32 | % | 42.87 | % | 40.64 | % | 38.31 | % | 41.99 | % | 40.89 | % |
4Q16 | 3Q16 | 4Q15 | ||||||||||||||||||||||||||||||||
Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | ||||||||||||||||||||||||||
Interest Earning Assets: | ||||||||||||||||||||||||||||||||||
Loans held for sale | $ | 859,254 | $ | 7,100 | 3.31 | % | $ | 835,953 | 7,074 | 3.38 | % | $ | 681,682 | $ | 6,276 | 3.68 | % | |||||||||||||||||
Loans (1) (2) (3): | ||||||||||||||||||||||||||||||||||
Commercial-related loans | ||||||||||||||||||||||||||||||||||
Commercial | 4,274,398 | 45,255 | 4.14 | 3,850,588 | 41,095 | 4.18 | 3,492,161 | 35,890 | 4.02 | |||||||||||||||||||||||||
Commercial loans collateralized by assignment of lease payments (lease loans) | 1,896,486 | 17,275 | 3.64 | 1,825,505 | 16,876 | 3.70 | 1,708,404 | 15,901 | 3.72 | |||||||||||||||||||||||||
Commercial real estate | 3,775,599 | 41,508 | 4.30 | 3,183,131 | 33,253 | 4.09 | 2,627,004 | 27,759 | 4.13 | |||||||||||||||||||||||||
Construction real estate | 486,861 | 4,592 | 3.69 | 397,480 | 3,921 | 3.86 | 274,188 | 3,736 | 5.33 | |||||||||||||||||||||||||
Total commercial related loans | 10,433,344 | 108,630 | 4.07 | 9,256,704 | 95,145 | 4.02 | 8,101,757 | 83,286 | 4.02 | |||||||||||||||||||||||||
Other loans: | ||||||||||||||||||||||||||||||||||
Real estate residential | 1,031,152 | 8,522 | 3.31 | 862,393 | 7,121 | 3.30 | 612,275 | 5,490 | 3.59 | |||||||||||||||||||||||||
Home equity | 273,694 | 2,651 | 3.85 | 231,399 | 2,252 | 3.87 | 219,440 | 2,142 | 3.87 | |||||||||||||||||||||||||
Indirect | 532,782 | 6,198 | 4.63 | 507,772 | 5,838 | 4.57 | 365,744 | 4,403 | 4.78 | |||||||||||||||||||||||||
Consumer | 80,113 | 776 | 3.86 | 77,451 | 821 | 4.21 | 83,869 | 777 | 3.67 | |||||||||||||||||||||||||
Total other loans | 1,917,741 | 18,147 | 3.76 | 1,679,015 | 16,032 | 3.80 | 1,281,328 | 12,812 | 3.97 | |||||||||||||||||||||||||
Total loans, excluding purchased credit-impaired loans | 12,351,085 | 126,777 | 4.08 | 10,935,719 | 111,177 | 4.04 | 9,383,085 | 96,098 | 4.06 | |||||||||||||||||||||||||
Purchased credit-impaired loans | 152,509 | 4,704 | 12.27 | 135,548 | 4,802 | 14.09 | 154,562 | 7,766 | 19.93 | |||||||||||||||||||||||||
Total loans | 12,503,594 | 131,481 | 4.18 | 11,071,267 | 115,979 | 4.17 | 9,537,647 | 103,864 | 4.32 | |||||||||||||||||||||||||
Taxable investment securities | 1,721,537 | 9,362 | 2.18 | 1,592,547 | 8,844 | 2.22 | 1,510,047 | 9,708 | 2.57 | |||||||||||||||||||||||||
Investment securities exempt from federal income taxes (3) | 1,304,931 | 15,724 | 4.82 | 1,318,855 | 15,972 | 4.84 | 1,383,592 | 16,875 | 4.88 | |||||||||||||||||||||||||
Federal funds sold | 36 | 0 | 1.00 | 36 | 0 | 1.00 | 100 | 1 | 1.00 | |||||||||||||||||||||||||
Other interest earning deposits | 107,311 | 157 | 0.58 | 103,061 | 164 | 0.63 | 141,891 | 110 | 0.31 | |||||||||||||||||||||||||
Total interest earning assets | $ | 16,496,663 | $ | 163,824 | 3.95 | $ | 14,921,719 | $ | 148,033 | 3.95 | $ | 13,254,959 | $ | 136,834 | 4.10 | |||||||||||||||||||
Non-interest earning assets | 2,696,084 | 2,326,712 | 1,989,674 | |||||||||||||||||||||||||||||||
Total assets | $ | 19,192,747 | $ | 17,248,431 | $ | 15,244,633 | ||||||||||||||||||||||||||||
Interest Bearing Liabilities: | ||||||||||||||||||||||||||||||||||
Core funding: | ||||||||||||||||||||||||||||||||||
Money market, NOW and interest bearing deposits | $ | 4,628,698 | $ | 2,593 | 0.22 | % | $ | 4,161,913 | $ | 2,299 | 0.22 | % | $ | 4,214,099 | $ | 1,999 | 0.19 | % | ||||||||||||||||
Savings deposits | 1,140,926 | 273 | 0.10 | 1,080,609 | 231 | 0.09 | 959,049 | 123 | 0.05 | |||||||||||||||||||||||||
Certificates of deposit | 1,263,675 | 1,728 | 0.54 | 1,257,959 | 1,633 | 0.52 | 1,245,947 | 1,431 | 0.46 | |||||||||||||||||||||||||
Customer repurchase agreements | 247,273 | 129 | 0.21 | 210,688 | 113 | 0.21 | 230,412 | 115 | 0.20 | |||||||||||||||||||||||||
Total core funding | 7,280,572 | 4,723 | 0.26 | 6,711,169 | 4,276 | 0.25 | 6,649,507 | 3,668 | 0.22 | |||||||||||||||||||||||||
Wholesale funding: | ||||||||||||||||||||||||||||||||||
Brokered certificates of deposit (includes fee expense) | 779,411 | 2,730 | 1.39 | 702,030 | 2,518 | 1.43 | 492,839 | 1,804 | 1.45 | |||||||||||||||||||||||||
Other borrowings | 1,638,605 | 4,067 | 0.97 | 1,533,344 | 3,346 | 0.85 | 1,031,301 | 2,286 | 0.87 | |||||||||||||||||||||||||
Total wholesale funding | 2,418,016 | 6,797 | 1.12 | 2,235,374 | 5,864 | 1.04 | 1,524,140 | 4,090 | 1.06 | |||||||||||||||||||||||||
Total interest bearing liabilities | $ | 9,698,588 | $ | 11,520 | 0.47 | $ | 8,946,543 | $ | 10,140 | 0.45 | $ | 8,173,647 | $ | 7,758 | 0.38 | |||||||||||||||||||
Non-interest bearing deposits | 6,454,025 | 5,524,043 | 4,617,076 | |||||||||||||||||||||||||||||||
Other non-interest bearing liabilities | 482,449 | 461,243 | 392,858 | |||||||||||||||||||||||||||||||
Stockholders' equity | 2,557,685 | 2,316,602 | 2,061,052 | |||||||||||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 19,192,747 | $ | 17,248,431 | $ | 15,244,633 | ||||||||||||||||||||||||||||
Net interest income/interest rate spread (4) | $ | 152,304 | 3.48 | % | $ | 137,893 | 3.50 | % | $ | 129,076 | 3.72 | % | ||||||||||||||||||||||
Taxable equivalent adjustment | 7,090 | 7,122 | 7,307 | |||||||||||||||||||||||||||||||
Net interest income, as reported | $ | 145,214 | $ | 130,771 | $ | 121,769 | ||||||||||||||||||||||||||||
Net interest margin (5) | 3.50 | % | 3.49 | % | 3.64 | % | ||||||||||||||||||||||||||||
Tax equivalent effect | 0.17 | % | 0.19 | % | 0.22 | % | ||||||||||||||||||||||||||||
Net interest margin on a fully tax equivalent basis (5) | 3.67 | % | 3.68 | % | 3.86 | % |
(1) | Non-accrual loans are included in average loans. |
(2) | Interest income includes amortization of deferred loan origination fees and costs. |
(3) | Non-taxable loan and investment income is presented on a fully tax equivalent basis assuming a 35% tax rate. |
(4) | Interest rate spread represents the difference between the average yield on interest earning assets and the average cost of interest bearing liabilities and is presented on a fully tax equivalent basis. |
(5) | Net interest margin represents net interest income as a percentage of average interest earning assets. |
Year Ended December 31, | ||||||||||||||||||||||
2016 | 2015 | |||||||||||||||||||||
Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | |||||||||||||||||
Interest Earning Assets: | ||||||||||||||||||||||
Loans held for sale | $ | 771,384 | $ | 26,450 | 3.43 | % | $ | 740,975 | 26,804 | 3.62 | % | |||||||||||
Loans (1) (2) (3): | ||||||||||||||||||||||
Commercial-related loans | ||||||||||||||||||||||
Commercial | 3,796,230 | 162,710 | 4.22 | 3,342,090 | 137,878 | 4.07 | ||||||||||||||||
Commercial loans collateralized by assignment of lease payments (lease loans) | 1,813,837 | 67,376 | 3.71 | 1,666,611 | 62,221 | 3.73 | ||||||||||||||||
Commercial real estate | 3,130,516 | 132,748 | 4.17 | 2,564,506 | 110,009 | 4.23 | ||||||||||||||||
Construction real estate | 378,405 | 14,852 | 3.86 | 217,181 | 12,637 | 5.74 | ||||||||||||||||
Total commercial related loans | 9,118,988 | 377,686 | 4.07 | 7,790,388 | 322,745 | 4.09 | ||||||||||||||||
Other loans: | ||||||||||||||||||||||
Real estate residential | 811,782 | 27,402 | 3.38 | 546,511 | 20,455 | 3.74 | ||||||||||||||||
Home equity | 229,626 | 8,905 | 3.88 | 231,464 | 9,209 | 3.98 | ||||||||||||||||
Indirect | 477,008 | 22,128 | 4.64 | 311,418 | 15,674 | 5.03 | ||||||||||||||||
Consumer | 79,059 | 3,158 | 3.99 | 79,416 | 3,161 | 3.98 | ||||||||||||||||
Total other loans | 1,597,475 | 61,593 | 3.86 | 1,168,809 | 48,499 | 4.15 | ||||||||||||||||
Total loans, excluding purchased credit-impaired loans | 10,716,463 | 439,279 | 4.10 | 8,959,197 | 371,244 | 4.14 | ||||||||||||||||
Purchased credit-impaired loans | 140,997 | 19,257 | 13.66 | 188,082 | 20,611 | 10.96 | ||||||||||||||||
Total loans | 10,857,460 | 458,536 | 4.22 | 9,147,279 | 391,855 | 4.28 | ||||||||||||||||
Taxable investment securities | 1,576,836 | 35,571 | 2.26 | 1,538,709 | 39,299 | 2.55 | ||||||||||||||||
Investment securities exempt from federal income taxes (3) | 1,331,323 | 64,649 | 4.86 | 1,282,909 | 63,037 | 4.91 | ||||||||||||||||
Federal funds sold | 37 | — | 1.00 | 70 | 1 | 0.99 | ||||||||||||||||
Other interest earning deposits | 106,075 | 587 | 0.55 | 117,344 | 318 | 0.27 | ||||||||||||||||
Total interest earning assets | $ | 14,643,115 | $ | 585,793 | 4.00 | $ | 12,827,286 | $ | 521,314 | 4.06 | ||||||||||||
Non-interest earning assets | 2,281,357 | 2,000,598 | ||||||||||||||||||||
Total assets | $ | 16,924,472 | $ | 14,827,884 | ||||||||||||||||||
Interest Bearing Liabilities: | ||||||||||||||||||||||
Core funding: | ||||||||||||||||||||||
Money market, NOW and interest bearing deposits | $ | 4,185,129 | $ | 9,027 | 0.22 | % | $ | 4,053,848 | $ | 7,060 | 0.17 | % | ||||||||||
Savings deposits | 1,053,429 | 837 | 0.08 | 962,221 | 502 | 0.05 | ||||||||||||||||
Certificates of deposit | 1,249,264 | 6,248 | 0.50 | 1,317,689 | 5,593 | 0.42 | ||||||||||||||||
Customer repurchase agreements | 202,673 | 420 | 0.21 | 240,737 | 452 | 0.19 | ||||||||||||||||
Total core funding | 6,690,495 | 16,532 | 0.25 | 6,574,495 | 13,607 | 0.21 | ||||||||||||||||
Wholesale funding: | ||||||||||||||||||||||
Brokered certificates of deposit (includes fee expense) | 654,238 | 9,467 | 1.45 | 452,290 | 6,503 | 1.44 | ||||||||||||||||
Other borrowings | 1,518,447 | 13,287 | 0.86 | 990,784 | 8,518 | 0.85 | ||||||||||||||||
Total wholesale funding | 2,172,685 | 22,754 | 1.05 | 1,443,074 | 15,021 | 1.04 | ||||||||||||||||
Total interest bearing liabilities | $ | 8,863,180 | $ | 39,286 | 0.44 | $ | 8,017,569 | $ | 28,628 | 0.36 | ||||||||||||
Non-interest bearing deposits | 5,351,197 | 4,381,030 | ||||||||||||||||||||
Other non-interest bearing liabilities | 433,202 | 370,373 | ||||||||||||||||||||
Stockholders' equity | 2,276,893 | 2,058,912 | ||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 16,924,472 | $ | 14,827,884 | ||||||||||||||||||
Net interest income/interest rate spread (4) | $ | 546,507 | 3.56 | % | $ | 492,686 | 3.70 | % | ||||||||||||||
Taxable equivalent adjustment | 28,616 | 27,080 | ||||||||||||||||||||
Net interest income, as reported | $ | 517,891 | $ | 465,606 | ||||||||||||||||||
Net interest margin (5) | 3.54 | % | 3.63 | % | ||||||||||||||||||
Tax equivalent effect | 0.19 | % | 0.21 | % | ||||||||||||||||||
Net interest margin on a fully tax equivalent basis (5) | 3.73 | % | 3.84 | % |
(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. |
4Q16 | 3Q16 | 4Q15 | |||||||||||||||||||||||||||||||
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 | $ | 12,503,594 | $ | 131,481 | 4.18 | % | $ | 11,071,267 | $ | 115,979 | 4.17 | % | $ | 9,537,647 | $ | 103,864 | 4.32 | % | |||||||||||||||
Less acquisition accounting discount accretion on non-PCI loans | (42,978 | ) | 4,854 | (34,315 | ) | 4,114 | (37,865 | ) | 6,193 | ||||||||||||||||||||||||
Less acquisition accounting discount accretion on PCI loans | (34,360 | ) | 2,709 | (23,110 | ) | 2,046 | (28,037 | ) | 3,510 | ||||||||||||||||||||||||
Total loans, excluding acquisition accounting discount accretion on bank merger loans | $ | 12,580,932 | $ | 123,918 | 3.92 | % | $ | 11,128,692 | $ | 109,819 | 3.93 | % | $ | 9,603,549 | $ | 94,161 | 3.89 | % | |||||||||||||||
Net interest margin on a fully tax equivalent basis, excluding acquisition accounting discount accretion on bank merger loans: | |||||||||||||||||||||||||||||||||
Total interest earning assets, as reported | $ | 16,496,663 | $ | 152,304 | 3.67 | % | $ | 14,921,719 | $ | 137,893 | 3.68 | % | $ | 13,254,959 | $ | 129,076 | 3.86 | % | |||||||||||||||
Less acquisition accounting discount accretion on non-PCI loans | (42,978 | ) | 4,854 | (34,315 | ) | 4,114 | (37,865 | ) | 6,193 | ||||||||||||||||||||||||
Less acquisition accounting discount accretion on PCI loans | (34,360 | ) | 2,709 | (23,110 | ) | 2,046 | (28,037 | ) | 3,510 | ||||||||||||||||||||||||
Total interest earning assets/net interest margin on a fully tax equivalent basis, excluding acquisition accounting discount accretion on bank merger loans | $ | 16,574,001 | $ | 144,741 | 3.47 | % | $ | 14,979,144 | $ | 131,733 | 3.50 | % | $ | 13,320,861 | $ | 119,373 | 3.56 | % |
Year Ended December 31, | ||||||||||||||||||||||
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 | $ | 10,857,460 | $ | 458,536 | 4.22 | % | $ | 9,147,279 | $ | 391,855 | 4.28 | % | ||||||||||
Less acquisition accounting discount accretion on non-PCI loans | (35,507 | ) | 19,309 | (47,410 | ) | 27,008 | ||||||||||||||||
Less acquisition accounting discount accretion on PCI loans | (26,856 | ) | 9,470 | (32,326 | ) | 6,631 | ||||||||||||||||
Total loans, excluding acquisition accounting discount accretion on bank merger loans | $ | 10,919,823 | $ | 429,757 | 3.94 | % | $ | 9,227,015 | $ | 358,216 | 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 | $ | 14,643,115 | $ | 546,507 | 3.73 | % | $ | 12,827,286 | $ | 492,686 | 3.84 | % | ||||||||||
Less acquisition accounting discount accretion on non-PCI loans | (35,507 | ) | 19,309 | (47,410 | ) | 27,008 | ||||||||||||||||
Less acquisition accounting discount accretion on PCI loans | (26,856 | ) | 9,470 | (32,326 | ) | 6,631 | ||||||||||||||||
Total interest earning assets/net interest margin on a fully tax equivalent basis, excluding acquisition accounting discount accretion on bank merger loans | $ | 14,705,478 | $ | 517,728 | 3.52 | % | $ | 12,907,022 | $ | 459,047 | 3.56 | % |