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Mergers and Acquisitions (Tables)
 9 Months Ended
Sep. 30, 2016
Business Combinations [Abstract]  
Summary of assets acquired and liabilities assumed
(Dollars in thousands)
 
 
Consideration paid:
 
 
Stock
 
$
1,504,811

Cash
 
107,638

Total consideration
 
1,612,449

 
 
 
Fair value of identifiable assets acquired:
 
 
Cash and cash equivalents
 
433,352

Investment securities:
 
 
Available-for-sale
 
808,894

Held-to-maturity
 
1,657

Loans held-for-sale
 
244,916

Loans
 
4,882,864

Premises and equipment
 
38,793

Loan servicing rights
 
42,462

Other intangible assets
 
12,399

Interest receivable and other assets
 
397,660

Total identifiable assets acquired
 
6,862,997

 
 
 
Fair value of liabilities assumed:
 
 
Noninterest-bearing deposits
 
1,236,902

Interest-bearing deposits
 
4,057,968

Interest payable and other liabilities
 
99,176

Securities sold under agreements to repurchase with customers
 
19,704

Short-term borrowings
 
387,500

Long-term borrowings
 
299,597

Total liabilities assumed
 
6,100,847

 
 
 
Fair value of net identifiable assets acquired
 
762,150

Goodwill resulting from acquisition
 
$
850,299
Information regarding acquired loans accounted for under ASC 310-30
Information regarding loans accounted for under ASC 310-30 at the merger date is as follows:
(Dollars in thousands)
 
 
Accounted for under ASC 310-30:
 
 
Contractual cash flows
 
$
5,968,950

Contractual cash flows not expected to be collected (nonaccretable difference)
 
223,959

Expected cash flows
 
5,744,991

Interest component of expected cash flows (accretable yield)
 
862,127

Fair value at acquisition
 
$
4,882,864
Pro forma financial information
The following unaudited pro forma financial information presents the consolidated results of operation of the Corporation and Talmer as if the merger had occurred as of January 1, 2015 with pro forma adjustments to give effect to any change in interest income due to the accretion of the discount (premium) associated with the fair value adjustments to acquired loans, any change in interest expense due to estimated premium amortization/discount accretion associated with the fair value adjustments to acquired time deposits and borrowings and other debt and the amortization of the core deposit intangible that would have resulted had the deposits been acquired as of January 1, 2015.

Dollars in thousands
For the three months ended,
 
September 30, 2016
 
September 30, 2015
Net interest and other income
$
176,102

 
$
163,933

Net Income
9,320

 
38,849

Earnings per share:

 

Basic
$
0.13

 
$
0.55

Diluted
0.13

 
0.55


Dollars in thousands
For the nine months ended,
 
September 30, 2016
 
September 30, 2015
Net interest and other income
$
504,831

 
$
460,791

Net Income
84,808

 
93,764

Earnings per share:

 

Basic
$
1.20

 
$
1.39

Diluted
1.19

 
1.37
Activity for accretable yield includes contractually due interest of acquired loans
Activity for the accretable yield, which includes contractually due interest for acquired loans that have been renewed or extended since the date of acquisition and continue to be accounted for in loan pools in accordance with ASC 310-30, follows:
(Dollars in thousands)
 
Talmer
 
Lake Michigan
 
Monarch
 
North-western
 
OAK
 
Total
Three Months Ended September 30, 2016
 
 
 
 
Balance at beginning of period
 
$
—

 
$
125,343

 
$
30,859

 
$
73,746

 
$
26,592

 
$
256,540

Addition attributable to acquisitions
 
862,127

 
—

 
—

 
—

 
—

 
862,127

Additions (reductions)(1)
 
—

 
6,565

 
114

 
526

 
19

 
7,224

Accretion recognized in interest income
 
(17,415
)
 
(7,968
)
 
(1,322
)
 
(3,890
)
 
(3,423
)
 
(34,018
)
Balance at end of period
 
$
844,712

 
$
123,940

 
$
29,651

 
$
70,382

 
$
23,188

 
$
1,091,873

 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2015
 
 
 
 
 
 
 
 
 
 
 
 
Balance at beginning of period
 
$
—

 
$
188,310

 
$
35,805

 
$
91,758

 
$
32,175

 
$
348,048

Additions attributable to acquisitions
 
—

 
—

 
—

 
—

 
—

 
—

Additions (reductions) (1)
 
—

 
(747
)
 
(351
)
 
(1,337
)
 
1,202

 
(1,233
)
Accretion recognized in interest income
 
—

 
(10,704
)
 
(2,085
)
 
(4,376
)
 
(2,825
)
 
(19,990
)
Balance at end of period
 
$
—

 
$
176,859

 
$
33,369

 
$
86,045

 
$
30,552

 
$
326,825

(1) Represents additions of estimated contractual interest expected to be collected from acquired loans being renewed or extended, less reductions in contractual interest resulting from the early payoff of acquired loans.
(Dollars in thousands)
 
Talmer
 
Lake Michigan
 
Monarch
 
North-western
 
OAK
 
Total
Nine Months Ended September 30, 2016
 
 
 
 
Balance at beginning of period
 
$
—

 
$
152,999

 
$
34,558

 
$
82,623

 
$
28,077

 
$
298,257

Addition attributable to acquisitions
 
862,127

 
—

 
—

 
—

 
—

 
862,127

Additions (reductions)(1)
 
—

 
(3,800
)
 
(749
)
 
(5,322
)
 
(182
)
 
(10,053
)
Accretion recognized in interest income
 
(17,415
)
 
(25,259
)
 
(4,158
)
 
(11,919
)
 
(9,707
)
 
(68,458
)
Reclassification from nonaccretable difference
 
—

 
—

 
—

 
5,000

 
5,000

 
10,000

Balance at end of period
 
$
844,712

 
$
123,940

 
$
29,651

 
$
70,382

 
$
23,188

 
$
1,091,873

 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2015
 
 
 
 
 
 
 
 
 
 
 
 
Balance at beginning of period
 
$
—

 
$
—

 
$
—

 
$
104,675

 
$
33,286

 
$
137,961

Additions attributable to acquisitions
 
—

 
190,246

 
37,914

 
—

 
—

 
228,160

Additions (reductions) (1)
 
—

 
803

 
(1,492
)
 
(4,196
)
 
6,417

 
1,532

Accretion recognized in interest income
 
—

 
(14,190
)
 
(3,053
)
 
(14,434
)
 
(9,151
)
 
(40,828
)
Balance at end of period
 
$
—

 
$
176,859

 
$
33,369

 
$
86,045

 
$
30,552

 
$
326,825

(1) Represents additions of estimated contractual interest expected to be collected from acquired loans being renewed or extended, less reductions in contractual interest resulting from the early payoff of acquired loans.