QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
☒ | Accelerated filer | ☐ | ||||||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||||||||
Emerging growth company | ||||||||||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ☐ |
Description | Page | |||||||
Glossary of Terms | ||||||||
PART I. FINANCIAL INFORMATION | ||||||||
(a) | ||||||||
(b) | ||||||||
(c) | ||||||||
(d) | ||||||||
(e) | ||||||||
(f) | ||||||||
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations | ||||||||
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds | ||||||||
Item 3. Defaults Upon Senior Securities - (not applicable) | ||||||||
Item 4. Mine Safety Disclosures - (not applicable) | ||||||||
Item 5. Other Information | ||||||||
GLOSSARY OF DEFINED ACRONYMS AND TERMS | |||||||||||||||||||||||||||||||||||||||||||||||
2024 Repurchase Program | The authorization, commencing on January 1, 2024 and expiring on December 31, 2024, to repurchase up to $125 million of the Corporation's common stock; under this authorization, up to $25 million of the $125 million authorization may be used to repurchase the Corporation's preferred stock and outstanding subordinated notes | ||||||||||||||||||||||||||||||||||||||||||||||
ACL | Allowance for credit losses | ||||||||||||||||||||||||||||||||||||||||||||||
Acquisition Date | April 26, 2024, the date of the Republic First Transaction | ||||||||||||||||||||||||||||||||||||||||||||||
AFS | Available for sale | ||||||||||||||||||||||||||||||||||||||||||||||
ALCO | Asset/Liability Management Committee | ||||||||||||||||||||||||||||||||||||||||||||||
AOCI | Accumulated other comprehensive (loss) income | ||||||||||||||||||||||||||||||||||||||||||||||
ASC | Accounting Standards Codification | ||||||||||||||||||||||||||||||||||||||||||||||
ASU | Accounting Standards Update | ||||||||||||||||||||||||||||||||||||||||||||||
BHCA | Bank Holding Company Act of 1956, as amended | ||||||||||||||||||||||||||||||||||||||||||||||
Blue Owl Agreement | Agreement for Purchase and Sale of Real Property with certain affiliates of Blue Owl Capital Inc. | ||||||||||||||||||||||||||||||||||||||||||||||
bp or bps | Basis point(s) | ||||||||||||||||||||||||||||||||||||||||||||||
Capital Rules | Regulatory capital requirements applicable to the Corporation and Fulton Bank | ||||||||||||||||||||||||||||||||||||||||||||||
CDI | Core deposit intangible | ||||||||||||||||||||||||||||||||||||||||||||||
CECL Day 1 Provision | Initial provision for credit losses required on non-PCD Loans acquired in the Republic First Transaction | ||||||||||||||||||||||||||||||||||||||||||||||
Corporation, Company, we, our or us | Fulton Financial Corporation | ||||||||||||||||||||||||||||||||||||||||||||||
Directors' Plan | Amended and Restated 2023 Director Equity Plan | ||||||||||||||||||||||||||||||||||||||||||||||
Dodd-Frank Act | Dodd-Frank Wall Street Reform and Consumer Protection Act | ||||||||||||||||||||||||||||||||||||||||||||||
Employee Equity Plan | 2022 Amended and Restated Equity and Cash Incentive Compensation Plan | ||||||||||||||||||||||||||||||||||||||||||||||
ETR | Effective tax rate | ||||||||||||||||||||||||||||||||||||||||||||||
Exchange Act | Securities Exchange Act of 1934, as amended | ||||||||||||||||||||||||||||||||||||||||||||||
FASB | Financial Accounting Standards Board | ||||||||||||||||||||||||||||||||||||||||||||||
FDIC | Federal Deposit Insurance Corporation | ||||||||||||||||||||||||||||||||||||||||||||||
Federal Reserve Board | Board of Governors of the Federal Reserve System | ||||||||||||||||||||||||||||||||||||||||||||||
FHLB | Federal Home Loan Bank | ||||||||||||||||||||||||||||||||||||||||||||||
FRB | Federal Reserve Bank | ||||||||||||||||||||||||||||||||||||||||||||||
FTE | Fully taxable-equivalent | ||||||||||||||||||||||||||||||||||||||||||||||
Fulton Bank or the Bank | Fulton Bank, N.A. | ||||||||||||||||||||||||||||||||||||||||||||||
GAAP | U.S. generally accepted accounting principles | ||||||||||||||||||||||||||||||||||||||||||||||
HTM | Held to maturity | ||||||||||||||||||||||||||||||||||||||||||||||
LGD | Loss given default | ||||||||||||||||||||||||||||||||||||||||||||||
LIBOR | London Interbank Offered Rate | ||||||||||||||||||||||||||||||||||||||||||||||
LTV | Loan-to-value | ||||||||||||||||||||||||||||||||||||||||||||||
Management's Discussion | Management’s Discussion and Analysis of Financial Condition and Results of Operations | ||||||||||||||||||||||||||||||||||||||||||||||
Merger | The acquisition by the Corporation of Prudential Bancorp that was completed effective as of July 1, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||
MSRs | Mortgage servicing rights | ||||||||||||||||||||||||||||||||||||||||||||||
Net loans | Loan and lease receivables (net of unearned income) | ||||||||||||||||||||||||||||||||||||||||||||||
NIM | Net interest margin | ||||||||||||||||||||||||||||||||||||||||||||||
N/M | Not meaningful | ||||||||||||||||||||||||||||||||||||||||||||||
OBS | Off-balance-sheet | ||||||||||||||||||||||||||||||||||||||||||||||
OCI | Other comprehensive income |
OREO | Other real estate owned | ||||||||||||||||||||||||||||||||||||||||||||||
PCD Loans | Loans purchased with more-than-insignificant credit deterioration | ||||||||||||||||||||||||||||||||||||||||||||||
PD | Probability of default | ||||||||||||||||||||||||||||||||||||||||||||||
Pension Plan | Defined Benefit Pension Plan | ||||||||||||||||||||||||||||||||||||||||||||||
Postretirement Plan | Postretirement Benefits Plan | ||||||||||||||||||||||||||||||||||||||||||||||
Prudential Bancorp | Prudential Bancorp, Inc. | ||||||||||||||||||||||||||||||||||||||||||||||
PSU | Performance-based restricted stock unit | ||||||||||||||||||||||||||||||||||||||||||||||
Republic First Bank | Republic First Bank, doing business as Republic Bank | ||||||||||||||||||||||||||||||||||||||||||||||
Republic First Assets and Liabilities | The assets acquired and liabilities assumed of Republic First Bank by Fulton Bank in connection with the Republic First Transaction | ||||||||||||||||||||||||||||||||||||||||||||||
Republic First Transaction | The acquisition of substantially all of the assets and assumption of substantially all of the deposits and certain liabilities of Republic First Bank by Fulton Bank from the FDIC, as receiver for Republic First Bank | ||||||||||||||||||||||||||||||||||||||||||||||
RSU | Restricted stock unit | ||||||||||||||||||||||||||||||||||||||||||||||
Sale-Leaseback Transaction | Sale of 40 financial center office locations to certain affiliates of Blue Owl Capital Inc. with concurrent agreements to lease each of the locations | ||||||||||||||||||||||||||||||||||||||||||||||
SBA | Small Business Administration | ||||||||||||||||||||||||||||||||||||||||||||||
SEC | United States Securities and Exchange Commission | ||||||||||||||||||||||||||||||||||||||||||||||
SOFR | Secured Overnight Financing Rate | ||||||||||||||||||||||||||||||||||||||||||||||
TruPS | Trust Preferred Securities |
June 30, 2024 | December 31, 2023 | ||||||||||
(unaudited) | |||||||||||
ASSETS | |||||||||||
Cash and due from banks | $ | $ | |||||||||
Interest-bearing deposits with other banks | |||||||||||
Cash and cash equivalents | |||||||||||
FRB and FHLB stock | |||||||||||
Loans held for sale | |||||||||||
Investment securities | |||||||||||
AFS, at estimated fair value | |||||||||||
HTM, at amortized cost | |||||||||||
Net loans | |||||||||||
Less: ACL - loans | ( | ( | |||||||||
Loans, net | |||||||||||
Net premises and equipment | |||||||||||
Accrued interest receivable | |||||||||||
Goodwill and net intangible assets | |||||||||||
Other assets | |||||||||||
Total Assets | $ | $ | |||||||||
LIABILITIES | |||||||||||
Deposits: | |||||||||||
Noninterest-bearing | $ | $ | |||||||||
Interest-bearing | |||||||||||
Total Deposits | |||||||||||
Borrowings: | |||||||||||
Federal funds purchased | |||||||||||
Federal Home Loan Bank advances | |||||||||||
Senior debt and subordinated debt | |||||||||||
Other borrowings | |||||||||||
Total Borrowings | |||||||||||
Accrued interest payable | |||||||||||
Other liabilities | |||||||||||
Total Liabilities | |||||||||||
SHAREHOLDERS' EQUITY | |||||||||||
Preferred stock, no par value, | |||||||||||
Common stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Treasury stock, at cost, | ( | ( | |||||||||
Total Shareholders' Equity | |||||||||||
Total Liabilities and Shareholders' Equity | $ | $ | |||||||||
See Notes to Consolidated Financial Statements |
(dollars in thousands, except per-share data) | Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Interest Income | |||||||||||||||||||||||
Loans, including fees | $ | $ | $ | $ | |||||||||||||||||||
Investment securities | |||||||||||||||||||||||
Other interest income | |||||||||||||||||||||||
Total Interest Income | |||||||||||||||||||||||
Interest Expense | |||||||||||||||||||||||
Deposits | |||||||||||||||||||||||
Federal funds purchased | |||||||||||||||||||||||
Federal Home Loan Bank advances | |||||||||||||||||||||||
Senior debt and subordinated debt | |||||||||||||||||||||||
Other borrowings and interest-bearing liabilities | |||||||||||||||||||||||
Total Interest Expense | |||||||||||||||||||||||
Net Interest Income | |||||||||||||||||||||||
Provision for credit losses | |||||||||||||||||||||||
Net Interest Income After Provision for Credit Losses | |||||||||||||||||||||||
Non-Interest Income | |||||||||||||||||||||||
Wealth management | |||||||||||||||||||||||
Commercial banking | |||||||||||||||||||||||
Consumer banking | |||||||||||||||||||||||
Mortgage banking | |||||||||||||||||||||||
Gain on acquisition, net of tax | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Non-Interest Income Before Investment Securities (Losses) Gains, Net | |||||||||||||||||||||||
Investment securities (losses) gains, net | ( | ( | ( | ||||||||||||||||||||
Total Non-Interest Income | |||||||||||||||||||||||
Non-Interest Expense | |||||||||||||||||||||||
Salaries and employee benefits | |||||||||||||||||||||||
Data processing and software | |||||||||||||||||||||||
Net occupancy | |||||||||||||||||||||||
Other outside services | |||||||||||||||||||||||
FDIC insurance | |||||||||||||||||||||||
Intangible amortization | |||||||||||||||||||||||
Equipment | |||||||||||||||||||||||
Professional fees | |||||||||||||||||||||||
Marketing | |||||||||||||||||||||||
Acquisition-related expenses | |||||||||||||||||||||||
Other | ( | ||||||||||||||||||||||
Total Non-Interest Expense | |||||||||||||||||||||||
Income Before Income Taxes | |||||||||||||||||||||||
Income taxes | |||||||||||||||||||||||
Net Income | |||||||||||||||||||||||
Preferred stock dividends | ( | ( | ( | ( | |||||||||||||||||||
Net Income Available to Common Shareholders | $ | $ | $ | $ | |||||||||||||||||||
PER SHARE: | |||||||||||||||||||||||
Net income available to common shareholders (basic) | $ | $ | $ | $ | |||||||||||||||||||
Net income available to common shareholders (diluted) | |||||||||||||||||||||||
Cash dividends | |||||||||||||||||||||||
See Notes to Consolidated Financial Statements |
Three months ended June 30 | Six months ended June 30 | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Net Income | $ | $ | $ | $ | |||||||||||||||||||
Other Comprehensive Income (Loss), net of tax: | |||||||||||||||||||||||
Unrealized gains (losses) on AFS investment securities | |||||||||||||||||||||||
Net unrealized holding gains (losses) | ( | ( | ( | ||||||||||||||||||||
Reclassification adjustment for securities net change realized in net income | ( | ||||||||||||||||||||||
Amortization of net unrealized gains on AFS securities transferred to HTM | |||||||||||||||||||||||
Net unrealized gains (losses) on AFS investment securities | ( | ( | |||||||||||||||||||||
Unrealized gains (losses) on interest rate derivatives used in cash flow hedges | |||||||||||||||||||||||
Net unrealized holding gains (losses) | ( | ( | |||||||||||||||||||||
Reclassification adjustment for net change realized in net income | |||||||||||||||||||||||
Net unrealized gains on interest rate derivatives used in cash flow hedges | |||||||||||||||||||||||
Defined benefit pension plan and postretirement benefits | |||||||||||||||||||||||
Amortization of net unrecognized pension and postretirement items | ( | ( | |||||||||||||||||||||
Other Comprehensive Income (Loss), net of tax | ( | ||||||||||||||||||||||
Total Comprehensive Income | $ | $ | $ | $ | |||||||||||||||||||
See Notes to Consolidated Financial Statements |
Preferred Stock | Common Stock | Additional | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total | |||||||||||||||||||||||||||||||||||||||||||||||
Shares Outstanding | Amount | Shares Outstanding | Amount | Paid-in Capital | |||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended June 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2024 | $ | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued(1) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividend reinvestment activity | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation awards (repurchases) | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock dividend | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock dividends - $ | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2024 | $ | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||||||||
Three months ended June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2023 | $ | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued(2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividend reinvestment activity | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation awards (repurchases) | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock dividend | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock dividends - $ | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2023 | $ | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||||||||
Six months ended June 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2023 | $ | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued(1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividend reinvestment activity | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation awards (repurchases) | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition of treasury stock | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock dividend | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock dividends - $ | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2024 | $ | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||||||||
Six months ended June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | $ | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued(2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividend reinvestment activity | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation awards (repurchases) | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition of treasury stock | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock dividend | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock dividends - $ | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2023 | $ | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||||||||
See Notes to Consolidated Financial Statements |
(dollars in thousands) | Six months ended June 30 | ||||||||||
2024 | 2023 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Provision for credit losses | |||||||||||
Depreciation and amortization of premises and equipment | |||||||||||
Net amortization of investment securities premiums | |||||||||||
Investment securities losses (gains), net | ( | ||||||||||
Gain on sales of mortgage loans held for sale | ( | ( | |||||||||
Proceeds from sales of mortgage loans held for sale | |||||||||||
Originations of mortgage loans held for sale | ( | ( | |||||||||
Intangible amortization | |||||||||||
Amortization of issuance costs and discounts on long-term borrowings | |||||||||||
Gain on acquisition, net of tax | ( | ||||||||||
Loss on disposal of premises and equipment | |||||||||||
Gain on Sale-Leaseback Transaction | ( | ||||||||||
Stock-based compensation | |||||||||||
Net change in deferred federal income tax | |||||||||||
Net change in accrued salaries and benefits | ( | ( | |||||||||
Net change in life insurance cash surrender value | ( | ( | |||||||||
Other changes, net | |||||||||||
Total adjustments | |||||||||||
Net cash provided by operating activities | |||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Proceeds from sales of AFS securities | |||||||||||
Proceeds from principal repayments and maturities of AFS securities | |||||||||||
Proceeds from principal repayments and maturities of HTM securities | |||||||||||
Purchase of AFS securities | ( | ( | |||||||||
Net change in FRB and FHLB stock | ( | ||||||||||
Net change in loans | ( | ( | |||||||||
Net purchases of premises and equipment | ( | ( | |||||||||
Settlement of bank-owned life insurance | |||||||||||
Proceeds from Sale-Leaseback Transaction | |||||||||||
Net cash received for acquisition | |||||||||||
Net change in tax credit investments | ( | ( | |||||||||
Net cash provided (used) by investing activities | ( | ||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Net change in demand and savings deposits | ( | ( | |||||||||
Net change in time deposits and brokered deposits | ( | ||||||||||
Net change in other borrowings | ( | ( | |||||||||
Net proceeds from issuance of common stock | |||||||||||
Dividends paid | ( | ( | |||||||||
Acquisition of treasury stock | ( | ( | |||||||||
Net cash (used) provided by financing activities | ( | ||||||||||
Net increase (decrease) in Cash and Cash Equivalents | ( | ||||||||||
Cash and Cash Equivalents at Beginning of Period | |||||||||||
Cash and Cash Equivalents at End of Period | $ | $ | |||||||||
Supplemental Disclosures of Cash Flow Information: | |||||||||||
Cash paid during the period for: | |||||||||||
Interest | $ | $ | |||||||||
Income taxes | |||||||||||
Supplemental Schedule of Certain Noncash Activities: | |||||||||||
Business Combination | |||||||||||
Fair value of tangible assets acquired | $ | $ | |||||||||
Intangible assets | |||||||||||
Liabilities assumed | |||||||||||
PCD Loans credit discount | |||||||||||
See Notes to Consolidated Financial Statements |
Estimated Fair Value | ||||||||
Cash payment received from FDIC | $ | |||||||
Assets acquired: | ||||||||
Cash and due from banks | ||||||||
Investment securities | ||||||||
Loans | ||||||||
Premises and equipment | ||||||||
CDI | ||||||||
FHLB Stock | ||||||||
Accrued interest receivable | ||||||||
Other assets | ||||||||
Total assets | ||||||||
Liabilities assumed: | ||||||||
Deposits | ||||||||
Borrowings | ||||||||
Other liabilities | ||||||||
Total liabilities | ||||||||
Net assets acquired: | ( | |||||||
Gain on acquisition, before income taxes | $ | |||||||
Gain on acquisition, net of income taxes | $ | |||||||
April 26, 2024 | ||||||||||||||
Unpaid Principal Balance | Estimated Fair Value | |||||||||||||
(dollars in thousands) | ||||||||||||||
Real estate - commercial mortgage | $ | $ | ||||||||||||
Commercial and industrial | ||||||||||||||
Real-estate - residential mortgage | ||||||||||||||
Real-estate - home equity | ||||||||||||||
Real-estate - construction | ||||||||||||||
Consumer | ||||||||||||||
Total acquired loans | $ | $ |
April 26, 2024 | ||||||||
(dollars in thousands) | ||||||||
Book balance of loans with deteriorated credit quality at acquisition | $ | |||||||
Fair value of loans with deteriorated credit quality at acquisition | ||||||||
Fair value discount | ||||||||
PCD Loans credit discount | ( | |||||||
Non-credit discount | $ |
Three months ended June 30, 2024 | ||||||||
(dollars in thousands) | ||||||||
Salaries and employee benefits | $ | |||||||
Professional fees | ||||||||
Charitable donation | Charitable donation | |||||||
Other | ||||||||
$ |
June 30, 2024 | |||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||||||||||
Available for Sale | (dollars in thousands) | ||||||||||||||||||||||
State and municipal securities | $ | $ | $ | ( | $ | ||||||||||||||||||
Corporate debt securities | ( | ||||||||||||||||||||||
Collateralized mortgage obligations | ( | ||||||||||||||||||||||
Residential mortgage-backed securities | ( | ||||||||||||||||||||||
Commercial mortgage-backed securities | ( | ||||||||||||||||||||||
Total | $ | $ | $ | ( | $ | ||||||||||||||||||
Held to Maturity | |||||||||||||||||||||||
Residential mortgage-backed securities | $ | $ | $ | ( | $ | ||||||||||||||||||
Commercial mortgage-backed securities | ( | ||||||||||||||||||||||
Total | $ | $ | $ | ( | $ |
December 31, 2023 | |||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||||||||||
Available for Sale | (dollars in thousands) | ||||||||||||||||||||||
U.S. Government securities | $ | $ | $ | ( | $ | ||||||||||||||||||
U.S. Government-sponsored agency securities | ( | ||||||||||||||||||||||
State and municipal securities | ( | ||||||||||||||||||||||
Corporate debt securities | ( | ||||||||||||||||||||||
Collateralized mortgage obligations | ( | ||||||||||||||||||||||
Residential mortgage-backed securities | ( | ||||||||||||||||||||||
Commercial mortgage-backed securities | ( | ||||||||||||||||||||||
Total | $ | $ | $ | ( | $ | ||||||||||||||||||
Held to Maturity | |||||||||||||||||||||||
Residential mortgage-backed securities | $ | $ | $ | ( | $ | ||||||||||||||||||
Commercial mortgage-backed securities | ( | ||||||||||||||||||||||
Total | $ | $ | $ | ( | $ |
June 30, 2024 | ||||||||||||||||||||||||||
Available for Sale | Held to Maturity | |||||||||||||||||||||||||
Amortized Cost | Estimated Fair Value | Amortized Cost | Estimated Fair Value | |||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||
Due in one year or less | $ | $ | $ | $ | ||||||||||||||||||||||
Due from one year to five years | ||||||||||||||||||||||||||
Due from five years to ten years | ||||||||||||||||||||||||||
Due after ten years | ||||||||||||||||||||||||||
Residential mortgage-backed securities(1) | ||||||||||||||||||||||||||
Commercial mortgage-backed securities(1) | ||||||||||||||||||||||||||
Collateralized mortgage obligations(1) | ||||||||||||||||||||||||||
Total | $ | $ | $ | $ |
Gross Realized Gains | Gross Realized Losses | Net Gains (Losses) | |||||||||||||||
Three months ended | (dollars in thousands) | ||||||||||||||||
June 30, 2024 | $ | $ | ( | $ | ( | ||||||||||||
June 30, 2023 | ( | ( | |||||||||||||||
Six months ended | |||||||||||||||||
June 30, 2024 | $ | $ | ( | $ | ( | ||||||||||||
June 30, 2023 | ( |
June 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||||||||||||||||||||||||
Number of Securities | Estimated Fair Value | Unrealized Losses | Number of Securities | Estimated Fair Value | Unrealized Losses | Estimated Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||||||||||||
Available for Sale | (dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||
State and municipal securities | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||||||||||
Corporate debt securities | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Total available for sale | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||||||||||
Held to Maturity | |||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | $ | $ | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Total held to maturity | $ | $ | $ | $ | ( | $ | $ | ( |
December 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||||||||||||||||||||||||
Number of Securities | Estimated Fair Value | Unrealized Losses | Number of Securities | Estimated Fair Value | Unrealized Losses | Estimated Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||||||||||||
Available for Sale | (dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||
U.S. Government Securities | $ | $ | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||||||||||||||
U.S. Government-sponsored agency securities | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
State and municipal securities | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Corporate debt securities | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Total available for sale | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||||||||||
Held to Maturity | |||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | $ | $ | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Total held to maturity | $ | $ | $ | $ | ( | $ | $ | ( |
June 30, 2024 | December 31, 2023 | ||||||||||
(dollars in thousands) | |||||||||||
Real estate - commercial mortgage | $ | $ | |||||||||
Commercial and industrial(1) | |||||||||||
Real-estate - residential mortgage | |||||||||||
Real-estate - home equity | |||||||||||
Real-estate - construction | |||||||||||
Consumer | |||||||||||
Leases and other loans(2) | |||||||||||
Net loans | $ | $ |
June 30, 2024 | December 31, 2023 | ||||||||||
(dollars in thousands) | |||||||||||
ACL - loans | $ | $ | |||||||||
Reserve for OBS credit exposures(1) | $ | $ |
Three months ended June 30 | Six months ended June 30 | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Balance at beginning of period | $ | $ | $ | ||||||||||||||||||||
CECL Day 1 Provision(1) | |||||||||||||||||||||||
Initial PCD allowance for credit losses | |||||||||||||||||||||||
Loans charged off | ( | ( | ( | ( | |||||||||||||||||||
Recoveries of loans previously charged off | |||||||||||||||||||||||
Net loans (charged off) recovered | ( | ( | ( | ( | |||||||||||||||||||
Provision for credit losses(1) (2) | |||||||||||||||||||||||
Balance at end of period | $ | $ | $ | $ | |||||||||||||||||||
Provision for OBS credit exposures(1) | $ | ( | $ | ( | $ | ( | $ | ||||||||||||||||
Reserve for OBS credit exposures | $ | $ | $ | $ |
Real Estate Commercial Mortgage | Commercial and Industrial | Real Estate Residential Mortgage | Consumer and Home Equity | Real Estate Construction | Leases and other loans | Total | |||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||
Three months ended June 30, 2024 | |||||||||||||||||||||||||||||||||||||||||
March 31, 2024 | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
CECL Day 1 Provision(1) | |||||||||||||||||||||||||||||||||||||||||
Initial PCD allowance for credit losses | |||||||||||||||||||||||||||||||||||||||||
Loans charged off | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Recoveries of loans previously charged off | |||||||||||||||||||||||||||||||||||||||||
Net loans (charged off) recovered | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||
Provision for loan losses(1) (2) | ( | ( | |||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2024 | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Three months ended June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||
March 31, 2023 | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Loans charged off | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Recoveries of loans previously charged off | |||||||||||||||||||||||||||||||||||||||||
Net loans (charged off) recovered | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Provision for loan and lease losses(1) (2) | ( | ( | |||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2023 | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Six months ended June 30, 2024 | |||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2023 | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
CECL Day 1 Provision(1) | |||||||||||||||||||||||||||||||||||||||||
Initial PCD allowance for credit losses | |||||||||||||||||||||||||||||||||||||||||
Loans charged off | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Recoveries of loans previously charged off | |||||||||||||||||||||||||||||||||||||||||
Net loans (charged off) recovered | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Provision for loan losses(1) (2) | ( | ||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2024 | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Six months ended June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Loans charged off | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Recoveries of loans previously charged off | |||||||||||||||||||||||||||||||||||||||||
Net loans (charged off) recovered | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||
Provision for loan losses(1)(2) | ( | ||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2023 | $ | $ | $ | $ | $ | $ | $ |
June 30, 2024 | December 31, 2023 | ||||||||||||||||||||||||||||||||||
With a Related Allowance | Without a Related Allowance | Total | With a Related Allowance | Without a Related Allowance | Total | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Real estate - commercial mortgage | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||||||||
Real estate - residential mortgage | |||||||||||||||||||||||||||||||||||
Real estate - home equity | |||||||||||||||||||||||||||||||||||
Real estate - construction | |||||||||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||||
Leases and other loans | |||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ |
June 30, 2024 | ||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||
Term Loans Amortized Cost Basis by Origination Year | Revolving Loans | Revolving Loans converted to Term Loans | ||||||||||||||||||||||||||||||
Amortized | Amortized | |||||||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | Prior | Cost Basis | Cost Basis | Total | ||||||||||||||||||||||||
Real estate - commercial mortgage | ||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
Special Mention | ||||||||||||||||||||||||||||||||
Substandard or Lower | ||||||||||||||||||||||||||||||||
Total real estate - commercial mortgage | ||||||||||||||||||||||||||||||||
Real estate - commercial mortgage | ||||||||||||||||||||||||||||||||
Current period gross charge-offs | ( | ( | ( | ( | ||||||||||||||||||||||||||||
Commercial and industrial | ||||||||||||||||||||||||||||||||
Pass | ||||||||||||||||||||||||||||||||
Special Mention | ||||||||||||||||||||||||||||||||
Substandard or Lower | ||||||||||||||||||||||||||||||||
Total commercial and industrial | ||||||||||||||||||||||||||||||||
Commercial and industrial | ||||||||||||||||||||||||||||||||
Current period gross charge-offs | ( | ( | ( | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||
Real estate - construction(1) | ||||||||||||||||||||||||||||||||
Pass | ||||||||||||||||||||||||||||||||
Special Mention | ||||||||||||||||||||||||||||||||
Substandard or Lower | ||||||||||||||||||||||||||||||||
Total real estate - construction | ||||||||||||||||||||||||||||||||
Real estate - construction(1) | ||||||||||||||||||||||||||||||||
Current period gross charge-offs | ||||||||||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||
Pass | ||||||||||||||||||||||||||||||||
Special Mention | ||||||||||||||||||||||||||||||||
Substandard or Lower | ||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ |
December 31, 2023 | ||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||
Term Loans Amortized Cost Basis by Origination Year | Revolving Loans | Revolving Loans converted to Term Loans | ||||||||||||||||||||||||||||||
Amortized | Amortized | |||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | Prior | Cost Basis | Cost Basis | Total | ||||||||||||||||||||||||
Real estate - commercial mortgage | ||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
Special Mention | ||||||||||||||||||||||||||||||||
Substandard or Lower | ||||||||||||||||||||||||||||||||
Total real estate - commercial mortgage | ||||||||||||||||||||||||||||||||
Real estate - commercial mortgage | ||||||||||||||||||||||||||||||||
Current period gross charge-offs | ( | ( | ( | |||||||||||||||||||||||||||||
Commercial and industrial | ||||||||||||||||||||||||||||||||
Pass | ||||||||||||||||||||||||||||||||
Special Mention | ||||||||||||||||||||||||||||||||
Substandard or Lower | ||||||||||||||||||||||||||||||||
Total commercial and industrial | ||||||||||||||||||||||||||||||||
Commercial and industrial | ||||||||||||||||||||||||||||||||
Current period gross charge-offs | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||
Real estate - construction(1) | ||||||||||||||||||||||||||||||||
Pass | ||||||||||||||||||||||||||||||||
Special Mention | ||||||||||||||||||||||||||||||||
Substandard or Lower | ||||||||||||||||||||||||||||||||
Total real estate - construction | ||||||||||||||||||||||||||||||||
Real estate - construction(1) | ||||||||||||||||||||||||||||||||
Current period gross charge-offs | ||||||||||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||
Pass | ||||||||||||||||||||||||||||||||
Special Mention | ||||||||||||||||||||||||||||||||
Substandard or Lower | ||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ |
June 30, 2024 | ||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||
Term Loans Amortized Cost Basis by Origination Year | Revolving Loans | Revolving Loans converted to Term Loans | ||||||||||||||||||||||||||||||
Amortized | Amortized | |||||||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | Prior | Cost Basis | Cost Basis | Total | ||||||||||||||||||||||||
Real estate - residential mortgage | ||||||||||||||||||||||||||||||||
Performing | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
Nonperforming | ||||||||||||||||||||||||||||||||
Total real estate - residential mortgage | ||||||||||||||||||||||||||||||||
Real estate - residential mortgage | ||||||||||||||||||||||||||||||||
Current period gross charge-offs | ( | ( | ( | |||||||||||||||||||||||||||||
Consumer and real estate - home equity | ||||||||||||||||||||||||||||||||
Performing | ||||||||||||||||||||||||||||||||
Nonperforming | ||||||||||||||||||||||||||||||||
Total consumer and real estate - home equity | ||||||||||||||||||||||||||||||||
Consumer and real estate - home equity | ||||||||||||||||||||||||||||||||
Current period gross charge-offs | ( | ( | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||
Leases and other loans | ||||||||||||||||||||||||||||||||
Performing | ||||||||||||||||||||||||||||||||
Nonperforming | ||||||||||||||||||||||||||||||||
Leases and other loans | ||||||||||||||||||||||||||||||||
Leases and other loans | ||||||||||||||||||||||||||||||||
Current period gross charge-offs | ( | ( | ( | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||
Construction - other | ||||||||||||||||||||||||||||||||
Performing | ||||||||||||||||||||||||||||||||
Nonperforming | ||||||||||||||||||||||||||||||||
Total construction - other | ||||||||||||||||||||||||||||||||
Construction - other | ||||||||||||||||||||||||||||||||
Current period gross charge-offs | ||||||||||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||
Performing | ||||||||||||||||||||||||||||||||
Nonperforming | ||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ |
December 31, 2023 | ||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||
Term Loans Amortized Cost Basis by Origination Year | Revolving Loans | Revolving Loans converted to Term Loans | ||||||||||||||||||||||||||||||
Amortized | Amortized | |||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | Prior | Cost Basis | Cost Basis | Total | ||||||||||||||||||||||||
Real estate - residential mortgage | ||||||||||||||||||||||||||||||||
Performing | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
Nonperforming | ||||||||||||||||||||||||||||||||
Total real estate - residential mortgage | ||||||||||||||||||||||||||||||||
Real estate - residential mortgage | ||||||||||||||||||||||||||||||||
Current period gross charge-offs | ( | ( | ||||||||||||||||||||||||||||||
Consumer and Real estate - home equity | ||||||||||||||||||||||||||||||||
Performing | ||||||||||||||||||||||||||||||||
Nonperforming | ||||||||||||||||||||||||||||||||
Total consumer and real estate - home equity | ||||||||||||||||||||||||||||||||
Consumer and Real estate - home equity | ||||||||||||||||||||||||||||||||
Current period gross charge-offs | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||
Leases and other loans | ||||||||||||||||||||||||||||||||
Performing | ||||||||||||||||||||||||||||||||
Nonperforming | ||||||||||||||||||||||||||||||||
Leases and other loans | ||||||||||||||||||||||||||||||||
Leases and other loans | ||||||||||||||||||||||||||||||||
Current period gross charge-offs | ( | ( | ( | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||
Construction - other | ||||||||||||||||||||||||||||||||
Performing | ||||||||||||||||||||||||||||||||
Nonperforming | ||||||||||||||||||||||||||||||||
Total construction - other | ||||||||||||||||||||||||||||||||
Construction - other | ||||||||||||||||||||||||||||||||
Current period gross charge-offs | ||||||||||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||
Performing | ||||||||||||||||||||||||||||||||
Nonperforming | ||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ |
June 30, 2024 | December 31, 2023 | ||||||||||
(dollars in thousands) | |||||||||||
Non-accrual loans | $ | $ | |||||||||
Loans 90 days or more past due and still accruing | |||||||||||
Total non-performing loans | |||||||||||
OREO(1) | |||||||||||
Total non-performing assets | $ | $ |
30-59 | 60-89 | ≥ 90 Days | |||||||||||||||||||||||||||||||||
Days Past | Days Past | Past Due | Non- | ||||||||||||||||||||||||||||||||
Due | Due | and Accruing | Accrual | Current | Total | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
June 30, 2024 | |||||||||||||||||||||||||||||||||||
Real estate - commercial mortgage | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Commercial and industrial(1) | |||||||||||||||||||||||||||||||||||
Real estate - residential mortgage | |||||||||||||||||||||||||||||||||||
Real estate - home equity | |||||||||||||||||||||||||||||||||||
Real estate - construction | |||||||||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||||
Leases and other loans(1) | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
30-59 Days Past Due | 60-89 Days Past Due | ≥ 90 Days Past Due and Accruing | Non- accrual | Current | Total | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
December 31, 2023 | |||||||||||||||||||||||||||||||||||
Real estate - commercial mortgage | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Commercial and industrial(1) | |||||||||||||||||||||||||||||||||||
Real estate - residential mortgage | |||||||||||||||||||||||||||||||||||
Real estate - home equity | |||||||||||||||||||||||||||||||||||
Real estate - construction | |||||||||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||||
Leases and other loans(1) | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
Term Extension | ||||||||||||||||||||
2024 | 2023 | |||||||||||||||||||
Amortization Cost Basis | % of Class of Financing Receivable | Amortization Cost Basis | % of Class of Financing Receivable | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Three months ended June 30 | ||||||||||||||||||||
Real estate - commercial mortgage | $ | % | $ | % | ||||||||||||||||
Commercial and industrial | ||||||||||||||||||||
Real estate - residential mortgage | ||||||||||||||||||||
Real estate - home equity | ||||||||||||||||||||
Total | $ | $ | ||||||||||||||||||
Six months ended June 30 | ||||||||||||||||||||
Real estate - commercial mortgage | $ | % | $ | % | ||||||||||||||||
Commercial and industrial | ||||||||||||||||||||
Real estate - residential mortgage | ||||||||||||||||||||
Real estate - home equity | ||||||||||||||||||||
Real estate - construction | ||||||||||||||||||||
Total | $ | $ |
Interest Rate Reduction and Term Extension | ||||||||||||||||||||
2024 | 2023 | |||||||||||||||||||
Amortized Cost Basis | % of Class of Financing Receivable | Amortized Cost Basis | % of Class of Financing Receivable | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Three months ended June 30 | ||||||||||||||||||||
Real estate - residential mortgage | $ | % | $ | % | ||||||||||||||||
Total | $ | $ | ||||||||||||||||||
Six months ended June 30 | ||||||||||||||||||||
Real estate - residential mortgage | $ | % | $ | % | ||||||||||||||||
Total | $ | $ | ||||||||||||||||||
Term Extension | |||||||||||||||||||||||
Financial Effect | |||||||||||||||||||||||
Three months ended June 30, 2024 | |||||||||||||||||||||||
Real estate - commercial mortgage | Added a weighted-average | ||||||||||||||||||||||
Real estate - residential mortgage | Added a weighted-average | ||||||||||||||||||||||
Real estate - home equity | Added a weighted-average | ||||||||||||||||||||||
Three months ended June 30, 2023 | |||||||||||||||||||||||
Real estate - commercial mortgage | Added a weighted-average | ||||||||||||||||||||||
Real estate - residential mortgage | Added a weighted-average | ||||||||||||||||||||||
Six months ended June 30, 2024 | |||||||||||||||||||||||
Real estate - commercial mortgage | Added a weighted-average | ||||||||||||||||||||||
Real estate - residential mortgage | Added a weighted-average | ||||||||||||||||||||||
Real estate - home equity | Added a weighted-average | ||||||||||||||||||||||
Real estate - construction | Added a weighted-average | ||||||||||||||||||||||
Six months ended June 30, 2023 | |||||||||||||||||||||||
Real estate - commercial mortgage | Added a weighted-average | ||||||||||||||||||||||
Commercial and industrial | Added a weighted-average | ||||||||||||||||||||||
Real estate - residential mortgage | Added a weighted-average | ||||||||||||||||||||||
Interest Rate Reduction(1) | |||||
Financial Effect | |||||
Three months ended June 30, 2024 | |||||
Real estate - residential mortgage | Reduced weighted-average interest rate from | ||||
Six months ended June 30, 2024 | |||||
Real estate - residential mortgage | Reduced weighted-average interest rate from | ||||
30-89 | 90+ | Total | |||||||||||||||||||||
Days Past | Past Due | Past | |||||||||||||||||||||
Current | Due | and Accruing | Due | ||||||||||||||||||||
June 30, 2024 | (dollars in thousands) | ||||||||||||||||||||||
Real estate - commercial mortgage | $ | $ | $ | $ | |||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||
Real estate - residential mortgage | |||||||||||||||||||||||
Real estate - home equity | |||||||||||||||||||||||
Real estate - construction | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Three months ended June 30 | Six months ended June 30 | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Amortized cost: | |||||||||||||||||||||||
Balance at beginning of period | $ | $ | $ | $ | |||||||||||||||||||
Originations of MSRs | |||||||||||||||||||||||
Amortization | ( | ( | ( | ( | |||||||||||||||||||
Balance at end of period | $ | $ | $ | $ | |||||||||||||||||||
Estimated fair value of MSRs at end of period | $ | $ | $ | $ |
June 30, 2024 | December 31, 2023 | ||||||||||||||||||||||
Notional Amount | Asset (Liability) Fair Value | Notional Amount | Asset (Liability) Fair Value | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Interest Rate Locks with Customers | |||||||||||||||||||||||
Positive fair values | $ | $ | $ | $ | |||||||||||||||||||
Negative fair values | ( | ( | |||||||||||||||||||||
Forward Commitments | |||||||||||||||||||||||
Positive fair values | |||||||||||||||||||||||
Negative fair values | ( | ( | |||||||||||||||||||||
Interest Rate Derivatives with Customers | |||||||||||||||||||||||
Positive fair values | |||||||||||||||||||||||
Negative fair values | ( | ( | |||||||||||||||||||||
Interest Rate Derivatives with Dealer Counterparties(1) | |||||||||||||||||||||||
Positive fair values | |||||||||||||||||||||||
Negative fair values | ( | ( | |||||||||||||||||||||
Interest Rate Derivatives used in Cash Flow Hedges | |||||||||||||||||||||||
Positive fair values | |||||||||||||||||||||||
Negative fair values | ( | ||||||||||||||||||||||
Foreign Exchange Contracts with Customers | |||||||||||||||||||||||
Positive fair values | |||||||||||||||||||||||
Negative fair values | ( | ( | |||||||||||||||||||||
Foreign Exchange Contracts with Correspondent Banks | |||||||||||||||||||||||
Positive fair values | |||||||||||||||||||||||
Negative fair values | ( | ( | |||||||||||||||||||||
Amount of Gain (Loss) Recognized in OCI on Derivative | Amount of Gain (Loss) Recognized in OCI Included Component | Amount of Gain (Loss) Recognized in OCI Excluded Component | Location of Gain (Loss) Recognized from AOCI into Income | Amount of Gain (Loss) Reclassified from AOCI into Income | Amount of Gain (Loss) Reclassified from AOCI into Income Included Component | Amount of Gain (Loss) Reclassified from AOCI into Income Excluded Component | |||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||
Three months ended June 30, 2024 | |||||||||||||||||||||||||||||||||||||||||
Interest Rate Products | $ | ( | $ | ( | $ | Interest Income | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||
Interest Rate Products | Interest Expense | ||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||
Three months ended June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||
Interest Rate Products | $ | ( | $ | ( | Interest Income | $ | ( | $ | ( | ||||||||||||||||||||||||||||||||
Total | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||||||||||||||
Six months ended June 30, 2024 | |||||||||||||||||||||||||||||||||||||||||
Interest Rate Products | ( | ( | Interest Income | ( | ( | ||||||||||||||||||||||||||||||||||||
Interest Rate Products | Interest Expense | ||||||||||||||||||||||||||||||||||||||||
Total | ( | ( | |||||||||||||||||||||||||||||||||||||||
Six months ended June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||
Interest Rate Products | Interest Income | ( | ( |
Consolidated Statements of Income Classification | |||||||||||||||||||||||
2024 | 2023 | ||||||||||||||||||||||
Interest Income | Interest Expense | Interest Income | Interest Expense | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Three months ended June 30 | |||||||||||||||||||||||
Total amounts of income line items presented in the consolidated statements of income in which the effects of fair value or cash flow hedges are recorded | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Interest contracts: | |||||||||||||||||||||||
Amount of gain (loss) reclassified from AOCI into income | ( | ( | |||||||||||||||||||||
Amount of gain or (loss) reclassified from AOCI into income as a result that a forecasted transaction is no longer probable of occurring | — | — | — | — | |||||||||||||||||||
Amount of gain (loss) reclassified from AOCI into income - included component | ( | ( | |||||||||||||||||||||
Amount of gain (loss) reclassified from AOCI into income - excluded component | |||||||||||||||||||||||
Six months ended June 30 | |||||||||||||||||||||||
Total amounts of income line items presented in the consolidated statements of income in which the effects of fair value or cash flow hedges are recorded | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Interest contracts: | |||||||||||||||||||||||
Amount of gain (loss) reclassified from AOCI into income | ( | ( | |||||||||||||||||||||
Amount of gain or (loss) reclassified from AOCI into income as a result that a forecasted transaction is no longer probable of occurring | — | — | — | — | |||||||||||||||||||
Amount of gain (loss) reclassified from AOCI into income - included component | ( | ( | |||||||||||||||||||||
Amount of gain (loss) reclassified from AOCI into income - excluded component |
Consolidated Statements of Income Classification | Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||
Mortgage banking derivatives(1) | Mortgage banking income | $ | ( | $ | $ | $ | |||||||||||||||||||||||
Interest rate derivatives | Other income | ||||||||||||||||||||||||||||
Foreign exchange contracts | Other income | ||||||||||||||||||||||||||||
Net fair value gains (losses) on derivative financial instruments | $ | $ | $ | $ |
June 30, 2024 | December 31, 2023 | ||||||||||
(dollars in thousands) | |||||||||||
Amortized cost(1) | $ | $ | |||||||||
Fair value |
Gross Amounts | Gross Amounts Not Offset | ||||||||||||||||||||||
Recognized | on the Consolidated | ||||||||||||||||||||||
on the | Balance Sheets | ||||||||||||||||||||||
Consolidated | Financial | Cash | Net | ||||||||||||||||||||
Balance Sheets | Instruments(1) | Collateral(2) | Amount | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
June 30, 2024 | |||||||||||||||||||||||
Interest rate derivative assets | $ | $ | ( | $ | $ | ||||||||||||||||||
Foreign exchange derivative assets with correspondent banks | ( | ||||||||||||||||||||||
Total | $ | $ | ( | $ | $ | ||||||||||||||||||
Interest rate derivative liabilities | $ | $ | ( | $ | ( | $ | |||||||||||||||||
Foreign exchange derivative liabilities with correspondent banks | ( | ||||||||||||||||||||||
Total | $ | $ | ( | $ | ( | $ | |||||||||||||||||
December 31, 2023 | |||||||||||||||||||||||
Interest rate derivative assets | $ | $ | ( | $ | $ | ||||||||||||||||||
Foreign exchange derivative assets with correspondent banks | ( | ||||||||||||||||||||||
Total | $ | $ | ( | $ | $ | ||||||||||||||||||
Interest rate derivative liabilities | $ | $ | ( | $ | ( | $ | |||||||||||||||||
Foreign exchange derivative liabilities with correspondent banks | ( | ( | |||||||||||||||||||||
Total | $ | $ | ( | $ | ( | $ |
Before-Tax Amount | Tax Effect | Net of Tax Amount | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
Three months ended June 30, 2024 | |||||||||||||||||
Net unrealized gain on securities | $ | ( | $ | $ | ( | ||||||||||||
Reclassification adjustment for securities net change included in net income(1) | ( | ||||||||||||||||
Amortization of net unrealized gains on AFS securities transferred to HTM(1) | ( | ||||||||||||||||
Net unrealized holding gains arising during the period on interest rate derivatives used in cash flow hedges | ( | ||||||||||||||||
Reclassification adjustment for net change realized in net income on interest rate derivatives used in cash flow hedges | ( | ||||||||||||||||
Amortization of net unrecognized pension and postretirement items(2) | ( | ( | |||||||||||||||
Total Other Comprehensive Income | $ | $ | ( | $ | |||||||||||||
Three months ended June 30, 2023 | |||||||||||||||||
Net unrealized losses on securities | $ | ( | $ | $ | ( | ||||||||||||
Reclassification adjustment for securities net change included in net income(3) | ( | ( | |||||||||||||||
Amortization of net unrealized gains on AFS securities transferred to HTM(1) | ( | ||||||||||||||||
Net unrealized holding losses arising during the period on interest rate derivatives used in cash flow hedges | ( | ( | |||||||||||||||
Reclassification adjustment for net change realized in net income on interest rate derivatives used in cash flow hedges | ( | ||||||||||||||||
Amortization of net unrecognized pension and postretirement items(2) | ( | ||||||||||||||||
Total Other Comprehensive Loss | $ | ( | $ | $ | ( | ||||||||||||
Six months ended June 30, 2024 | |||||||||||||||||
Unrealized gain on securities | $ | ( | $ | $ | ( | ||||||||||||
Reclassification adjustment for securities net change included in net income(3) | ( | ||||||||||||||||
Amortization of net unrealized gains on AFS securities transferred to HTM(1) | ( | ||||||||||||||||
Net unrealized holding gains arising during the period on interest rate derivatives used in cash flow hedges | ( | ||||||||||||||||
Reclassification adjustment for net change realized in net income on interest rate swaps used in cash flow hedges | ( | ||||||||||||||||
Amortization of net unrecognized pension and postretirement item(2) | ( | ( | |||||||||||||||
Total Other Comprehensive Income | $ | $ | ( | $ | |||||||||||||
Six months ended June 30, 2023 | |||||||||||||||||
Unrealized gain on securities | $ | $ | ( | $ | |||||||||||||
Reclassification adjustment for securities net change included in net income(3) | ( | ||||||||||||||||
Amortization of net unrealized gains on AFS securities transferred to HTM(1) | ( | ||||||||||||||||
Net unrealized holding losses arising during the period on interest rate derivatives used in cash flow hedges | ( | ( | |||||||||||||||
Reclassification adjustment for change realized in net income on interest rate swaps used in cash flow hedges | ( | ||||||||||||||||
Amortization of net unrecognized pension and postretirement items(2) | ( | ||||||||||||||||
Total Other Comprehensive Income | $ | $ | ( | $ |
Unrealized Gains (Losses) on Investment Securities | Net Unrealized Gain (Loss) on Interest Rate Derivatives used in Cash Flow Hedges | Unrecognized Pension and Postretirement Plan Income (Costs) | Total | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Three months ended June 30, 2024 | |||||||||||||||||||||||
Balance at March 31, 2024 | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
OCI before reclassifications | ( | ( | |||||||||||||||||||||
Amounts reclassified from AOCI | ( | ||||||||||||||||||||||
Amortization of net unrealized gains on AFS securities transferred to HTM | |||||||||||||||||||||||
Balance at June 30, 2024 | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Three months ended June 30, 2023 | |||||||||||||||||||||||
Balance at March 31, 2023 | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
OCI before reclassifications | ( | ( | ( | ||||||||||||||||||||
Amounts reclassified from AOCI | ( | ||||||||||||||||||||||
Amortization of net unrealized losses on AFS securities transferred to HTM | |||||||||||||||||||||||
Balance at June 30, 2023 | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Six months ended June 30, 2024 | |||||||||||||||||||||||
Balance at December 31, 2023 | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
OCI before reclassifications | ( | ( | |||||||||||||||||||||
Amounts reclassified from AOCI | ( | ||||||||||||||||||||||
Amortization of net unrealized gains on AFS securities transferred to HTM | |||||||||||||||||||||||
Balance at June 30, 2024 | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Six months ended June 30, 2023 | |||||||||||||||||||||||
Balance at December 31, 2022 | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
OCI before reclassifications | ( | ( | |||||||||||||||||||||
Amounts reclassified from AOCI | |||||||||||||||||||||||
Amortization of net unrealized losses on AFS securities transferred to HTM | |||||||||||||||||||||||
Balance at June 30, 2023 | $ | ( | $ | ( | $ | ( | $ | ( |
June 30, 2024 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Loans held for sale | $ | $ | $ | $ | |||||||||||||||||||
Available for sale investment securities: | |||||||||||||||||||||||
State and municipal securities | |||||||||||||||||||||||
Corporate debt securities | |||||||||||||||||||||||
Collateralized mortgage obligations | |||||||||||||||||||||||
Residential mortgage-backed securities | |||||||||||||||||||||||
Commercial mortgage-backed securities | |||||||||||||||||||||||
Total available for sale investment securities | |||||||||||||||||||||||
Other assets: | |||||||||||||||||||||||
Investments held in Rabbi Trust | |||||||||||||||||||||||
Derivative assets | |||||||||||||||||||||||
Total assets | $ | $ | $ | $ | |||||||||||||||||||
Other liabilities: | |||||||||||||||||||||||
Deferred compensation liabilities | $ | $ | $ | $ | |||||||||||||||||||
Derivative liabilities | |||||||||||||||||||||||
Total liabilities | $ | $ | $ | $ |
December 31, 2023 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Loans held for sale | $ | $ | $ | $ | |||||||||||||||||||
Available for sale investment securities: | |||||||||||||||||||||||
U.S. Government securities | |||||||||||||||||||||||
U.S. Government sponsored agency securities | |||||||||||||||||||||||
State and municipal securities | |||||||||||||||||||||||
Corporate debt securities | |||||||||||||||||||||||
Collateralized mortgage obligations | |||||||||||||||||||||||
Residential mortgage-backed securities | |||||||||||||||||||||||
Commercial mortgage-backed securities | |||||||||||||||||||||||
Total available for sale investment securities | |||||||||||||||||||||||
Other assets: | |||||||||||||||||||||||
Investments held in Rabbi Trust | |||||||||||||||||||||||
Derivative assets | |||||||||||||||||||||||
Total assets | $ | $ | $ | $ | |||||||||||||||||||
Other liabilities: | |||||||||||||||||||||||
Deferred compensation liabilities | $ | $ | $ | $ | |||||||||||||||||||
Derivative liabilities | |||||||||||||||||||||||
Total liabilities | $ | $ | $ | $ |
June 30, 2024 | December 31, 2023 | ||||||||||
(dollars in thousands) | |||||||||||
Loans, net | $ | $ | |||||||||
OREO | |||||||||||
MSRs(1) | |||||||||||
Total assets | $ | $ |
June 30, 2024 | |||||||||||||||||
Estimated Fair Value | |||||||||||||||||
Carrying Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(dollars in thousands) | |||||||||||||||||
FINANCIAL ASSETS | |||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | $ | ||||||||||||
FRB and FHLB stock | |||||||||||||||||
Loans held for sale | |||||||||||||||||
AFS securities | |||||||||||||||||
HTM securities | |||||||||||||||||
Loans, net | |||||||||||||||||
Accrued interest receivable | |||||||||||||||||
Other assets | |||||||||||||||||
FINANCIAL LIABILITIES | |||||||||||||||||
Demand and savings deposits | $ | $ | $ | $ | $ | ||||||||||||
Brokered deposits | |||||||||||||||||
Time deposits | |||||||||||||||||
Accrued interest payable | |||||||||||||||||
Federal Home Loan Bank advances | |||||||||||||||||
Senior debt and subordinated debt | |||||||||||||||||
Other borrowings | |||||||||||||||||
Other liabilities |
December 31, 2023 | |||||||||||||||||
Estimated Fair Value | |||||||||||||||||
Carrying Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(dollars in thousands) | |||||||||||||||||
FINANCIAL ASSETS | |||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | $ | ||||||||||||
FRB and FHLB stock | |||||||||||||||||
Loans held for sale | |||||||||||||||||
AFS securities | |||||||||||||||||
HTM securities | |||||||||||||||||
Loans, net | |||||||||||||||||
Accrued interest receivable | |||||||||||||||||
Other assets | |||||||||||||||||
FINANCIAL LIABILITIES | |||||||||||||||||
Demand and savings deposits | $ | $ | $ | $ | $ | ||||||||||||
Brokered deposits | |||||||||||||||||
Time deposits | |||||||||||||||||
Accrued interest payable | |||||||||||||||||
Federal funds purchased | |||||||||||||||||
Federal Home Loan Bank advances | |||||||||||||||||
Senior debt and subordinated debt | |||||||||||||||||
Other borrowings | |||||||||||||||||
Other liabilities |
Assets | Liabilities | |||||||
Cash and cash equivalents | Demand and savings deposits | |||||||
Accrued interest receivable | Other borrowings | |||||||
Accrued interest payable |
Three months ended June 30 | Six months ended June 30 | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Weighted average shares outstanding (basic) | |||||||||||||||||||||||
Impact of common stock equivalents | |||||||||||||||||||||||
Weighted average shares outstanding (diluted) | |||||||||||||||||||||||
Per share: | |||||||||||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||||||||||
Diluted |
Three months ended June 30 | Six months ended June 30 | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Compensation expense | $ | $ | $ | $ | |||||||||||||||||||
Tax benefit | ( | ( | ( | ( | |||||||||||||||||||
Total stock-based compensation, net of tax | $ | $ | $ | $ |
Three months ended June 30 | Six months ended June 30 | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Interest cost | $ | $ | $ | $ | |||||||||||||||||||
Expected return on plan assets | ( | ( | ( | ( | |||||||||||||||||||
Net amortization and deferral | |||||||||||||||||||||||
Net periodic pension cost | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Three months ended June 30 | Six months ended June 30 | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Interest cost | $ | $ | $ | $ | |||||||||||||||||||
Net accretion and deferral | ( | ( | ( | ( | |||||||||||||||||||
Net periodic benefit | $ | ( | $ | ( | $ | ( | $ | ( |
Three months ended June 30 | Six months ended June 30 | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Operating lease expense | $ | $ | $ | $ | |||||||||||||||||||
Variable lease expense | |||||||||||||||||||||||
Sublease income | ( | ( | ( | ( | |||||||||||||||||||
Total lease expense | $ | $ | $ | $ | |||||||||||||||||||
Operating Leases | Balance Sheet Classification | June 30, 2024 | December 31, 2023 | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
ROU assets | Other assets | $ | $ | |||||||||||||||||
Lease liabilities | Other liabilities | $ | $ | |||||||||||||||||
Weighted average remaining lease term | ||||||||||||||||||||
Weighted average discount rate | % | % |
Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities | $ | $ | $ | $ | ||||||||||||||||
ROU assets obtained in exchange for lease obligations |
Year | Operating Leases | ||||
Remaining in 2024 | $ | ||||
2025 | |||||
2026 | |||||
2027 | |||||
2028 | |||||
Thereafter | |||||
Total lease payments | |||||
Less: imputed interest | ( | ||||
Present value of lease liabilities | $ |
June 30, 2024 | December 31, 2023 | ||||||||||
(dollars in thousands) | |||||||||||
Commitments to extend credit | $ | $ | |||||||||
Standby letters of credit | |||||||||||
Commercial letters of credit |
Three months ended June 30 | Six months ended June 30 | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
(dollars in thousands, except per share data) | |||||||||||||||||||||||
Net income | $ | 94,975 | $ | 79,607 | $ | 156,916 | $ | 147,920 | |||||||||||||||
Net income available to common shareholders | 92,413 | 77,045 | 151,792 | 142,796 | |||||||||||||||||||
Net income available to common shareholders (diluted) | 0.52 | 0.46 | 0.89 | 0.85 | |||||||||||||||||||
Operating net income available to common shareholders per share(1) | 0.47 | 0.47 | 0.87 | 0.86 | |||||||||||||||||||
Return on average assets, annualized | 1.24 | % | 1.17 | % | 1.08 | % | 1.10 | % | |||||||||||||||
Operating return on average assets, annualized(1) | 1.11 | % | 1.18 | % | 1.06 | % | 1.11 | % | |||||||||||||||
Return on average common shareholders' equity, annualized | 13.47 | % | 12.59 | % | 11.45 | % | 11.81 | % | |||||||||||||||
Operating return on average common shareholders' equity (tangible), annualized(1) | 15.56 | % | 16.52 | % | 14.40 | % | 15.50 | % | |||||||||||||||
Net interest margin(2) | 3.43 | % | 3.40 | % | 3.37 | % | 3.46 | % | |||||||||||||||
Efficiency ratio(1) | 62.6 | % | 60.1 | % | 62.9 | % | 59.3 | % | |||||||||||||||
Non-performing assets to total assets | 0.55 | % | 0.55 | % | 0.55 | % | 0.55 | % | |||||||||||||||
Net charge-offs (recoveries) to average loans | 0.19 | % | 0.04 | % | 0.18 | % | 0.15 | % |
Three months ended June 30 | Six months ended June 30 | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
(dollars in thousands, except per share data and share data) | |||||||||||||||||||||||
Operating net income available to common shareholders | |||||||||||||||||||||||
Net income available to common shareholders | $ | 92,413 | $ | 77,045 | $ | 151,792 | $ | 142,796 | |||||||||||||||
Plus: Core deposit intangible amortization | 4,556 | 912 | 4,997 | 1,426 | |||||||||||||||||||
Plus: Acquisition-related expense | 13,803 | — | 13,803 | — | |||||||||||||||||||
Plus: CECL Day 1 Provision | 23,444 | — | 23,444 | — | |||||||||||||||||||
Less: Non-PCD Loans credit-related interest income from acquisition | (571) | — | (571) | — | |||||||||||||||||||
Less: Interest rate derivative transition valuation(1) | (137) | — | (288) | — | |||||||||||||||||||
Less: Gain on acquisition, net of tax | (47,392) | — | (47,392) | — | |||||||||||||||||||
Plus: Loss on securities restructuring | 20,282 | — | 20,282 | — | |||||||||||||||||||
Plus: FDIC special assessment | — | — | 956 | — | |||||||||||||||||||
Less: Gain on Sale-Leaseback Transaction | (20,266) | — | (20,266) | — | |||||||||||||||||||
Plus: FultonFirst implementation and asset disposals | 6,323 | — | 12,652 | — | |||||||||||||||||||
Less: Tax impact of adjustments | (9,961) | (192) | (11,552) | (299) | |||||||||||||||||||
Operating net income available to common shareholders (numerator) | $ | 82,494 | $ | 77,765 | $ | 147,857 | $ | 143,923 | |||||||||||||||
Weighted average shares (diluted) (denominator) | 176,934 | 167,191 | 170,769 | 167,809 | |||||||||||||||||||
Operating net income available to common shareholders, per share (diluted) | $ | 0.47 | $ | 0.47 | $ | 0.87 | $ | 0.86 | |||||||||||||||
Three months ended June 30 | Six months ended June 30 | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Operating return on average assets(2) | |||||||||||||||||||||||
Net income | $ | 94,975 | $ | 79,607 | $ | 156,916 | $ | 147,920 | |||||||||||||||
Plus: Core deposit intangible amortization | 4,556 | 912 | 4,997 | 1,426 | |||||||||||||||||||
Plus: Acquisition-related expense | 13,803 | — | 13,803 | — | |||||||||||||||||||
Plus: CECL Day 1 Provision | 23,444 | — | 23,444 | — | |||||||||||||||||||
Less: Non-PCD Loans credit-related interest income from acquisition | (571) | — | (571) | — | |||||||||||||||||||
Less: Interest rate derivative transition valuation(1) | (137) | — | (288) | — | |||||||||||||||||||
Less: Gain on acquisition, net of tax | (47,392) | — | (47,392) | — | |||||||||||||||||||
Plus: Loss on securities restructuring | 20,282 | — | 20,282 | — | |||||||||||||||||||
Plus: FDIC special assessment | — | — | 956 | — | |||||||||||||||||||
Less: Gain on Sale-Leaseback Transaction | (20,266) | — | (20,266) | — | |||||||||||||||||||
Plus: FultonFirst implementation and asset disposals | 6,323 | — | 12,652 | — | |||||||||||||||||||
Less: Tax impact of adjustments | (9,961) | (192) | (11,552) | (299) | |||||||||||||||||||
Operating net income (numerator) | $ | 85,056 | $ | 80,327 | $ | 152,981 | $ | 149,047 | |||||||||||||||
Total average assets | 30,774,891 | 27,235,567 | 29,113,319 | 27,069,036 | |||||||||||||||||||
Less: Average net core deposit intangible | (68,234) | (6,417) | (36,836) | (6,676) | |||||||||||||||||||
Total operating average assets | $ | 30,706,657 | $ | 27,229,150 | $ | 29,076,483 | $ | 27,062,360 | |||||||||||||||
Operating return on average assets | 1.11 | % | 1.18 | % | 1.06 | % | 1.11 | % | |||||||||||||||
Operating return on average common shareholders' equity (tangible)(2) | |||||||||||||||||||||||
Net income available to common shareholders | $ | 92,413 | $ | 77,045 | $ | 151,792 | $ | 142,796 | |||||||||||||||
Plus: Intangible amortization | 4,688 | 1,072 | 5,261 | 1,746 | |||||||||||||||||||
Plus: Acquisition-related expense | 13,803 | — | 13,803 | — | |||||||||||||||||||
Plus: CECL Day 1 Provision | 23,444 | — | 23,444 | — | |||||||||||||||||||
Less: Non-PCD Loans credit-related interest income from acquisition | (571) | — | (571) | — | |||||||||||||||||||
Less: Interest rate derivative transition valuation(1) | (137) | — | (288) | — | |||||||||||||||||||
Less: Gain on acquisition, net of tax | (47,392) | — | (47,392) | — | |||||||||||||||||||
Plus: Loss on securities restructuring | 20,282 | — | 20,282 | — | |||||||||||||||||||
Plus: FDIC special assessment | — | — | 956 | — | |||||||||||||||||||
Less: Gain on Sale-Leaseback Transaction | (20,266) | — | (20,266) | — | |||||||||||||||||||
Plus: FultonFirst implementation and asset disposals | 6,323 | — | 12,652 | — | |||||||||||||||||||
Less: Tax impact of adjustments | (9,989) | (225) | (11,607) | (367) | |||||||||||||||||||
Adjusted net income available to common shareholders (numerator) | $ | 82,598 | $ | 77,892 | $ | 148,066 | $ | 144,175 | |||||||||||||||
Average shareholders' equity | 2,952,671 | $ | 2,647,464 | $ | 2,859,808 | $ | 2,630,484 | ||||||||||||||||
Less: Average preferred stock | (192,878) | (192,878) | (192,878) | (192,878) | |||||||||||||||||||
Less: Average goodwill and intangible assets | (624,471) | (563,146) | (592,432) | (562,449) | |||||||||||||||||||
Average tangible common shareholders' equity (denominator) | $ | 2,135,322 | $ | 1,891,440 | $ | 2,074,498 | $ | 1,875,157 | |||||||||||||||
Operating return on average common shareholders' equity (tangible) | 15.56 | % | 16.52 | % | 14.40 | % | 15.50 | % | |||||||||||||||
Three months ended June 30 | Six months ended June 30 | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Efficiency ratio | |||||||||||||||||||||||
Non-interest expense | $ | 199,488 | $ | 168,018 | $ | 377,087 | $ | 327,636 | |||||||||||||||
Less: Acquisition-related expense | (13,803) | — | (13,803) | — | |||||||||||||||||||
Less: Intangible amortization | (4,688) | (1,072) | (5,261) | (1,746) | |||||||||||||||||||
Less: FDIC special assessment | — | — | (956) | — | |||||||||||||||||||
Less: Gain on Sale-Leaseback Transaction | 20,266 | — | 20,266 | — | |||||||||||||||||||
Less: FultonFirst implementation and asset disposals | (6,323) | — | (12,652) | — | |||||||||||||||||||
Non-interest expense (numerator) | $ | 194,940 | $ | 166,946 | $ | 364,681 | $ | 325,890 | |||||||||||||||
Net interest income | $ | 241,720 | $ | 212,852 | $ | 448,657 | $ | 428,439 | |||||||||||||||
Tax equivalent adjustment | 4,556 | 4,405 | 9,148 | 8,819 | |||||||||||||||||||
Plus: Total non-interest income | 92,994 | 60,585 | 150,133 | 112,339 | |||||||||||||||||||
Less: Interest rate derivative transition valuation(1) | (137) | — | (288) | — | |||||||||||||||||||
Less: Non-PCD Loans credit-related interest income from acquisition | (571) | — | (571) | — | |||||||||||||||||||
Plus: Gain on acquisition, net of tax | (47,392) | — | (47,392) | — | |||||||||||||||||||
Plus: Investment securities losses (gains), net | 20,282 | 4 | 20,282 | (19) | |||||||||||||||||||
Total revenue (denominator) | $ | 311,452 | $ | 277,846 | $ | 579,969 | $ | 549,578 | |||||||||||||||
Efficiency ratio | 62.6 | % | 60.1 | % | 62.9 | % | 59.3 | % | |||||||||||||||
(1) Resulting from the reference rate transition from LIBOR to SOFR in the Corporation's commercial customer interest rate swap program. | |||||||||||||||||||||||
(2) Results are annualized. |
Three months ended June 30 | |||||||||||||||||||||||||||||||||||
2024 | 2023 | ||||||||||||||||||||||||||||||||||
Average Balance | Interest (1) | Yield/ Rate | Average Balance | Interest (1) | Yield/ Rate | ||||||||||||||||||||||||||||||
ASSETS | (dollars in thousands) | ||||||||||||||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||||||||||||||
Net loans(2) | $ | 23,345,914 | $ | 355,533 | 6.12 | % | $ | 20,866,235 | $ | 287,154 | 5.52 | % | |||||||||||||||||||||||
Investment securities(3) | 4,396,050 | 33,799 | 3.07 | 4,234,096 | 27,303 | 2.57 | |||||||||||||||||||||||||||||
Other interest-earning assets | 1,125,886 | 15,730 | 5.61 | 529,582 | 4,860 | 3.68 | |||||||||||||||||||||||||||||
Total interest-earning assets | 28,867,850 | 405,062 | 5.64 | 25,629,913 | 319,317 | 4.99 | |||||||||||||||||||||||||||||
Noninterest-earning assets: | |||||||||||||||||||||||||||||||||||
Cash and due from banks | 302,381 | 129,682 | |||||||||||||||||||||||||||||||||
Premises and equipment | 203,166 | 216,847 | |||||||||||||||||||||||||||||||||
Other assets | 1,759,138 | 1,541,657 | |||||||||||||||||||||||||||||||||
Less: ACL - loans(4) | (357,644) | (282,532) | |||||||||||||||||||||||||||||||||
Total Assets | $ | 30,774,891 | $ | 27,235,567 | |||||||||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||||
Demand deposits | $ | 7,080,302 | $ | 31,748 | 1.80 | % | $ | 5,535,669 | $ | 14,612 | 1.06 | % | |||||||||||||||||||||||
Savings and money market deposits | 7,309,141 | 44,901 | 2.47 | 6,632,572 | 29,289 | 1.77 | |||||||||||||||||||||||||||||
Brokered deposits | 1,123,328 | 15,074 | 5.40 | 954,773 | 12,135 | 5.10 | |||||||||||||||||||||||||||||
Time deposits | 3,670,158 | 39,364 | 4.31 | 2,063,038 | 13,763 | 2.68 | |||||||||||||||||||||||||||||
Total interest-bearing deposits | 19,182,929 | 131,087 | 2.75 | 15,186,052 | 69,799 | 1.84 | |||||||||||||||||||||||||||||
Borrowings and other interest-bearing liabilities | 2,441,691 | 27,699 | 4.53 | 2,790,860 | 32,261 | 4.60 | |||||||||||||||||||||||||||||
Total interest-bearing liabilities | 21,624,620 | 158,786 | 2.95 | 17,976,912 | 102,060 | 2.27 | |||||||||||||||||||||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||||||||||||||||||
Demand deposits | 5,460,025 | 6,021,091 | |||||||||||||||||||||||||||||||||
Other liabilities | 737,575 | 590,100 | |||||||||||||||||||||||||||||||||
Total Liabilities | 27,822,220 | 24,588,103 | |||||||||||||||||||||||||||||||||
Shareholders’ equity | 2,952,671 | 2,647,464 | |||||||||||||||||||||||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 30,774,891 | $ | 27,235,567 | |||||||||||||||||||||||||||||||
Net interest income/net interest margin (FTE) | 246,276 | 3.43 | % | 217,257 | 3.40 | % | |||||||||||||||||||||||||||||
Tax equivalent adjustment | (4,556) | (4,405) | |||||||||||||||||||||||||||||||||
Net interest income | $ | 241,720 | $ | 212,852 |
2024 vs. 2023 Increase (Decrease) due to change in | |||||||||||||||||
Volume | Yield/Rate | Net | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
FTE Interest income on: | |||||||||||||||||
Net loans(1) | $ | 35,713 | $ | 32,666 | $ | 68,379 | |||||||||||
Investment securities | 1,067 | 5,429 | 6,496 | ||||||||||||||
Other interest-earning assets | 7,416 | 3,454 | 10,870 | ||||||||||||||
Total interest income | $ | 44,196 | $ | 41,549 | $ | 85,745 | |||||||||||
Interest expense on: | |||||||||||||||||
Demand deposits | $ | 4,893 | $ | 12,243 | $ | 17,136 | |||||||||||
Savings and money market deposits | 3,201 | 12,411 | 15,612 | ||||||||||||||
Brokered deposits | 2,204 | 735 | 2,939 | ||||||||||||||
Time deposits | 14,377 | 11,224 | 25,601 | ||||||||||||||
Borrowings and other interest-bearing liabilities | (4,067) | (495) | (4,562) | ||||||||||||||
Total interest expense | $ | 20,608 | $ | 36,118 | $ | 56,726 |
Three months ended June 30 | |||||||||||||||||||||||||||||||||||
2024 | 2023 | Increase (Decrease) | |||||||||||||||||||||||||||||||||
Balance | Yield | Balance | Yield | $ | % | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Real estate – commercial mortgage | $ | 8,958,139 | 6.57 | % | $ | 7,775,436 | 5.93 | % | $ | 1,182,703 | 15.2 | % | |||||||||||||||||||||||
Commercial and industrial | 4,853,583 | 6.90 | 4,629,919 | 6.16 | 223,664 | 4.8 | |||||||||||||||||||||||||||||
Real estate – residential mortgage | 5,977,132 | 4.19 | 5,008,295 | 3.70 | 968,837 | 19.3 | |||||||||||||||||||||||||||||
Real estate – home equity | 1,117,367 | 7.33 | 1,066,615 | 6.93 | 50,752 | 4.8 | |||||||||||||||||||||||||||||
Real estate – construction | 1,430,057 | 7.42 | 1,306,286 | 6.68 | 123,771 | 9.5 | |||||||||||||||||||||||||||||
Consumer | 685,183 | 6.84 | 763,407 | 5.85 | (78,224) | (10.2) | |||||||||||||||||||||||||||||
Leases and other loans(1) | 324,453 | 6.05 | 316,277 | 4.48 | 8,176 | 2.6 | |||||||||||||||||||||||||||||
Total loans | $ | 23,345,914 | 6.12 | % | $ | 20,866,235 | 5.52 | % | $ | 2,479,679 | 11.9 | % |
Three months ended June 30 | |||||||||||||||||||||||||||||||||||
2024 | 2023 | Increase (Decrease) | |||||||||||||||||||||||||||||||||
Balance | Rate | Balance | Rate | $ | % | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Noninterest-bearing demand | $ | 5,460,025 | — | % | $ | 6,021,091 | — | % | $ | (561,066) | (9.3) | % | |||||||||||||||||||||||
Interest-bearing demand | 7,080,302 | 1.80 | 5,535,669 | 1.06 | 1,544,633 | 27.9 | |||||||||||||||||||||||||||||
Savings and money market deposits | 7,309,141 | 2.47 | 6,632,572 | 1.77 | 676,569 | 10.2 | |||||||||||||||||||||||||||||
Total demand deposits and savings and money market deposits | 19,849,468 | 1.55 | 18,189,332 | 0.97 | 1,660,136 | 9.1 | |||||||||||||||||||||||||||||
Brokered deposits | 1,123,328 | 5.40 | 954,773 | 5.10 | 168,555 | 17.7 | |||||||||||||||||||||||||||||
Time deposits | 3,670,158 | 4.31 | 2,063,038 | 2.68 | 1,607,120 | 77.9 | |||||||||||||||||||||||||||||
Total deposits | $ | 24,642,954 | 2.14 | % | $ | 21,207,143 | 1.32 | % | $ | 3,435,811 | 16.2 | % |
Three months ended June 30 | |||||||||||||||||||||||||||||||||||
2024 | 2023 | Increase (Decrease) | |||||||||||||||||||||||||||||||||
Balance | Rate | Balance | Rate | $ | % | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Federal funds purchased | $ | 32,637 | 5.97 | % | $ | 679,401 | 5.31 | % | $ | (646,764) | (95.2) | % | |||||||||||||||||||||||
Federal Home Loan Bank advances | 833,726 | 4.64 | 880,811 | 5.34 | (47,085) | (5.3) | |||||||||||||||||||||||||||||
Senior debt and subordinated debt | 535,656 | 3.96 | 539,906 | 3.96 | (4,250) | (0.8) | |||||||||||||||||||||||||||||
Other borrowings and interest-bearing liabilities(1) | 1,039,672 | 4.51 | 690,742 | 3.47 | 348,930 | 50.5 | |||||||||||||||||||||||||||||
Total borrowings and other interest-bearing liabilities | $ | 2,441,691 | 4.53 | % | $ | 2,790,860 | 4.60 | % | $ | (349,169) | (12.5) | % |
Three months ended June 30 | Increase (Decrease) | ||||||||||||||||||||||
2024 | 2023 | $ | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Wealth management | $ | 20,990 | $ | 18,678 | $ | 2,312 | 12.4 | % | |||||||||||||||
Commercial banking: | |||||||||||||||||||||||
Merchant and card | 7,798 | 7,700 | 98 | N/M | |||||||||||||||||||
Cash management | 6,966 | 5,835 | 1,131 | 19.4 | |||||||||||||||||||
Capital markets | 2,585 | 6,092 | (3,507) | (57.6) | |||||||||||||||||||
Other commercial banking | 4,061 | 3,518 | 543 | 15.4 | |||||||||||||||||||
Total commercial banking | 21,410 | 23,145 | (1,735) | (7.5) | |||||||||||||||||||
Consumer banking: | |||||||||||||||||||||||
Card | 8,305 | 6,592 | 1,713 | 26.0 | |||||||||||||||||||
Overdraft | 3,377 | 2,696 | 681 | 25.3 | |||||||||||||||||||
Other consumer banking | 2,918 | 2,432 | 486 | 20.0 | |||||||||||||||||||
Total consumer banking | 14,600 | 11,720 | 2,880 | 24.6 | |||||||||||||||||||
Mortgage banking | 3,951 | 2,940 | 1,011 | 34.4 | |||||||||||||||||||
Other | 4,933 | 4,106 | 827 | 20.1 | |||||||||||||||||||
Subtotal | 65,884 | 60,589 | 5,295 | 8.7 | |||||||||||||||||||
Gain on acquisition, net of tax | 47,392 | — | 47,392 | N/M | |||||||||||||||||||
Investment securities gains (losses), net | (20,282) | (4) | (20,278) | N/M | |||||||||||||||||||
Total Non-Interest Income | $ | 92,994 | $ | 60,585 | $ | 32,409 | 53.5 | % |
Three months ended June 30 | Increase (Decrease) | ||||||||||||||||||||||
2024 | 2023 | $ | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Salaries and employee benefits | $ | 109,466 | $ | 94,102 | $ | 15,364 | 16.3 | % | |||||||||||||||
Data processing and software | 20,357 | 16,776 | 3,581 | 21.3 | |||||||||||||||||||
Net occupancy | 17,793 | 14,374 | 3,419 | 23.8 | |||||||||||||||||||
Other outside services | 11,773 | 10,834 | 939 | 8.7 | |||||||||||||||||||
FDIC insurance | 6,696 | 4,895 | 1,801 | 36.8 | |||||||||||||||||||
Intangible amortization | 4,688 | 1,072 | 3,616 | 337.3 | |||||||||||||||||||
Equipment | 4,561 | 3,530 | 1,031 | 29.2 | |||||||||||||||||||
Professional fees | 2,571 | 1,829 | 742 | 40.6 | |||||||||||||||||||
Marketing | 2,101 | 1,655 | 446 | 26.9 | |||||||||||||||||||
Other | 19,622 | 18,951 | 671 | 3.5 | |||||||||||||||||||
Subtotal | 199,628 | 168,018 | 31,610 | 18.8 | |||||||||||||||||||
Gain on Sale-Leaseback Transaction | (20,266) | — | (20,266) | N/M | |||||||||||||||||||
Acquisition-related expenses | 13,803 | — | 13,803 | N/M | |||||||||||||||||||
FultonFirst implementation and asset disposals | 6,323 | — | 6,323 | N/M | |||||||||||||||||||
Total non-interest expense | $ | 199,488 | $ | 168,018 | $ | 31,470 | 18.7 | % |
Six months ended June 30 | |||||||||||||||||||||||||||||||||||
2024 | 2023 | ||||||||||||||||||||||||||||||||||
Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | ||||||||||||||||||||||||||||||
ASSETS | (dollars in thousands) | ||||||||||||||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||||||||||||||
Net loans(1) | $ | 22,357,972 | $ | 669,414 | 6.02 | % | $ | 20,665,779 | $ | 550,219 | 5.36 | % | |||||||||||||||||||||||
Investment securities(2) | 4,189,901 | 60,847 | 2.90 | 4,261,718 | 54,824 | 2.57 | |||||||||||||||||||||||||||||
Other interest-earning assets | 699,547 | 19,059 | 5.47 | 511,456 | 8,508 | 3.34 | |||||||||||||||||||||||||||||
Total interest-earning assets | 27,247,420 | 749,320 | 5.52 | 25,438,953 | 613,551 | 4.85 | |||||||||||||||||||||||||||||
Noninterest-earning assets: | |||||||||||||||||||||||||||||||||||
Cash and due from banks | 292,638 | 135,436 | |||||||||||||||||||||||||||||||||
Premises and equipment | 213,270 | 219,920 | |||||||||||||||||||||||||||||||||
Other assets | 1,686,941 | 1,552,669 | |||||||||||||||||||||||||||||||||
Less: ACL - loans(3) | (326,950) | (277,942) | |||||||||||||||||||||||||||||||||
Total Assets | $ | 29,113,319 | $ | 27,069,036 | |||||||||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||||
Demand deposits | $ | 6,338,513 | $ | 52,248 | 1.66 | % | $ | 5,431,696 | $ | 23,067 | 0.86 | % | |||||||||||||||||||||||
Savings and money market deposits | 6,989,186 | 83,699 | 2.41 | 6,551,470 | 49,824 | 1.53 | |||||||||||||||||||||||||||||
Brokered deposits | 1,103,356 | 29,728 | 5.42 | 698,644 | 17,308 | 5.00 | |||||||||||||||||||||||||||||
Time deposits | 3,319,249 | 68,986 | 4.18 | 1,880,970 | 21,221 | 2.28 | |||||||||||||||||||||||||||||
Total interest-bearing deposits | 17,750,304 | 234,661 | 2.66 | 14,562,780 | 111,420 | 1.54 | |||||||||||||||||||||||||||||
Borrowings and other interest-bearing liabilities | 2,525,034 | 56,854 | 4.49 | 2,928,819 | 64,873 | 4.43 | |||||||||||||||||||||||||||||
Total interest-bearing liabilities | 20,275,338 | 291,515 | 2.89 | 17,491,599 | 176,293 | 2.03 | |||||||||||||||||||||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||||||||||||||||||
Demand deposits | 5,260,550 | 6,329,701 | |||||||||||||||||||||||||||||||||
Other liabilities | 717,623 | 617,252 | |||||||||||||||||||||||||||||||||
Total Liabilities | 26,253,511 | 24,438,552 | |||||||||||||||||||||||||||||||||
Shareholders’ equity | 2,859,808 | 2,630,484 | |||||||||||||||||||||||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 29,113,319 | $ | 27,069,036 | |||||||||||||||||||||||||||||||
Net interest income/net interest margin (FTE) | 457,805 | 3.37 | % | 437,258 | 3.46 | % | |||||||||||||||||||||||||||||
Tax equivalent adjustment | (9,148) | (8,819) | |||||||||||||||||||||||||||||||||
Net interest income | $ | 448,657 | $ | 428,439 |
2024 vs. 2023 Increase (Decrease) due to change in | |||||||||||||||||
Volume | Yield/Rate | Net | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
FTE interest income on: | |||||||||||||||||
Net loans (1) | $ | 47,606 | $ | 71,589 | $ | 119,195 | |||||||||||
Investment securities | (924) | 6,947 | 6,023 | ||||||||||||||
Other interest-earning assets | 3,859 | 6,692 | 10,551 | ||||||||||||||
Total interest income | $ | 50,541 | $ | 85,228 | $ | 135,769 | |||||||||||
Interest expense on: | |||||||||||||||||
Demand deposits | $ | 4,440 | $ | 24,741 | $ | 29,181 | |||||||||||
Savings and money market deposits | 3,525 | 30,350 | 33,875 | ||||||||||||||
Brokered deposits | 10,847 | 1,573 | 12,420 | ||||||||||||||
Time deposits | 22,856 | 24,909 | 47,765 | ||||||||||||||
Borrowings and other interest-bearing liabilities | (8,893) | 874 | (8,019) | ||||||||||||||
Total interest expense | $ | 32,775 | $ | 82,447 | $ | 115,222 |
Six months ended June 30 | |||||||||||||||||||||||||||||||||||
2024 | 2023 | Increase (Decrease) | |||||||||||||||||||||||||||||||||
Balance | Yield | Balance | Yield | $ | % | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Real estate – commercial mortgage | $ | 8,562,077 | 6.46 | % | $ | 7,748,356 | 5.74 | % | $ | 813,721 | 10.5 | % | |||||||||||||||||||||||
Commercial and industrial | 4,685,383 | 6.79 | 4,598,097 | 5.97 | 87,286 | 1.9 | |||||||||||||||||||||||||||||
Real estate - residential mortgage | 5,665,518 | 4.08 | 4,900,182 | 3.64 | 765,336 | 15.6 | |||||||||||||||||||||||||||||
Real estate - home equity | 1,078,344 | 7.33 | 1,076,270 | 6.65 | 2,074 | 0.2 | |||||||||||||||||||||||||||||
Real estate – construction | 1,335,348 | 7.43 | 1,291,299 | 6.49 | 44,049 | 3.4 | |||||||||||||||||||||||||||||
Consumer | 703,353 | 6.64 | 742,445 | 5.62 | (39,092) | (5.3) | |||||||||||||||||||||||||||||
Leases and other loans (1) | 327,949 | 5.38 | 309,130 | 4.29 | 18,819 | 6.1 | |||||||||||||||||||||||||||||
Total loans | $ | 22,357,972 | 6.02 | % | $ | 20,665,779 | 5.36 | % | $ | 1,692,193 | 8.2 | % |
Six months ended June 30 | |||||||||||||||||||||||||||||||||||
2024 | 2023 | Increase (Decrease) | |||||||||||||||||||||||||||||||||
Balance | Rate | Balance | Rate | $ | % | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Noninterest-bearing demand | $ | 5,260,550 | — | % | $ | 6,329,701 | — | % | $ | (1,069,151) | (16.9) | % | |||||||||||||||||||||||
Interest-bearing demand | 6,338,513 | 1.66 | 5,431,696 | 0.86 | 906,817 | 16.7 | |||||||||||||||||||||||||||||
Savings and money market deposits | 6,989,186 | 2.41 | 6,551,470 | 1.53 | 437,716 | 6.7 | |||||||||||||||||||||||||||||
Total demand deposits and savings and money market deposits | 18,588,249 | 1.47 | 18,312,867 | 0.80 | 275,382 | 1.5 | |||||||||||||||||||||||||||||
Brokered deposits | 1,103,356 | 5.42 | 698,644 | 5.00 | 404,712 | 57.9 | |||||||||||||||||||||||||||||
Time deposits | 3,319,249 | 4.18 | 1,880,970 | 2.28 | 1,438,279 | 76.5 | |||||||||||||||||||||||||||||
Total deposits | $ | 23,010,854 | 2.05 | % | $ | 20,892,481 | 1.08 | % | $ | 2,118,373 | 10.1 | % |
Six months ended June 30 | |||||||||||||||||||||||||||||||||||
2024 | 2023 | Increase (Decrease) | |||||||||||||||||||||||||||||||||
Balance | Rate | Balance | Rate | $ | % | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Federal funds purchased | $ | 103,148 | 5.52 | % | $ | 592,753 | 5.08 | % | $ | (489,605) | (82.6) | ||||||||||||||||||||||||
Federal Home Loan Bank advances | 868,308 | 4.72 | 1,070,148 | 5.11 | (201,840) | (18.9) | |||||||||||||||||||||||||||||
Senior debt and subordinated debt | 535,567 | 3.96 | 539,817 | 3.96 | (4,250) | (0.8) | |||||||||||||||||||||||||||||
Other borrowings and interest-bearing liabilities(1) | 1,018,011 | 4.30 | 726,101 | 3.26 | 291,910 | 40.2 | |||||||||||||||||||||||||||||
Total borrowings and other interest-bearing liabilities | $ | 2,525,034 | 4.49 | % | $ | 2,928,819 | 4.43 | % | $ | (403,785) | (13.8) | % |
Six months ended June 30 | Increase (Decrease) | ||||||||||||||||||||||
2024 | 2023 | $ | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Wealth management | $ | 41,144 | $ | 36,740 | $ | 4,404 | 12.0 | % | |||||||||||||||
Commercial banking: | |||||||||||||||||||||||
Merchant and card | 14,607 | 14,534 | 73 | 0.5 | |||||||||||||||||||
Cash management | 13,271 | 11,350 | 1,921 | 16.9 | |||||||||||||||||||
Capital markets | 4,926 | 8,436 | (3,510) | (41.6) | |||||||||||||||||||
Other commercial banking | 7,434 | 6,338 | 1,096 | 17.3 | |||||||||||||||||||
Total commercial banking | 40,238 | 40,658 | (420) | (1.0) | |||||||||||||||||||
Consumer banking: | |||||||||||||||||||||||
Card | 14,933 | 12,835 | 2,098 | 16.3 | |||||||||||||||||||
Overdraft | 6,163 | 5,429 | 734 | 13.5 | |||||||||||||||||||
Other consumer banking | 5,172 | 4,673 | 499 | 10.7 | |||||||||||||||||||
Total consumer banking | 26,268 | 22,937 | 3,331 | 14.5 | |||||||||||||||||||
Mortgage banking | 7,041 | 4,910 | 2,131 | 43.4 | |||||||||||||||||||
Other | 8,332 | 7,075 | 1,257 | 17.8 | |||||||||||||||||||
Subtotal | 123,023 | 112,320 | 10,703 | 9.5 | |||||||||||||||||||
Gain on acquisition, net of tax | 47,392 | — | 47,392 | N/M | |||||||||||||||||||
Investment securities (losses) gains, net | (20,282) | 19 | (20,301) | N/M | |||||||||||||||||||
Total Non-Interest Income | $ | 150,133 | $ | 112,339 | $ | 37,794 | 33.6 | % |
Six months ended June 30 | Increase (Decrease) | ||||||||||||||||||||||
2024 | 2023 | $ | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Salaries and employee benefits | $ | 204,705 | $ | 183,385 | $ | 21,320 | 11.6 | % | |||||||||||||||
Data processing and software | 38,018 | 32,571 | 5,447 | 16.7 | |||||||||||||||||||
Net occupancy | 33,943 | 28,812 | 5,131 | 17.8 | |||||||||||||||||||
Other outside services | 22,582 | 20,960 | 1,622 | 7.7 | |||||||||||||||||||
FDIC insurance | 12,800 | 9,690 | 3,110 | 32.1 | |||||||||||||||||||
Equipment | 8,602 | 6,920 | 1,682 | N/M | |||||||||||||||||||
Intangible amortization | 5,261 | 1,746 | 3,515 | N/M | |||||||||||||||||||
Professional fees | 4,659 | 4,221 | 438 | 10.4 | |||||||||||||||||||
Marketing | 4,012 | 3,541 | 471 | 13.3 | |||||||||||||||||||
Other | 36,316 | 35,790 | 526 | 1.5 | |||||||||||||||||||
Subtotal | 370,898 | 327,636 | 43,262 | 13.2 | |||||||||||||||||||
Gain on Sale-Leaseback Transaction | (20,266) | — | (20,266) | N/M | |||||||||||||||||||
Acquisition-related expenses | 13,803 | — | 13,803 | N/M | |||||||||||||||||||
FultonFirst implementation and asset disposals | 12,652 | — | 12,652 | N/M | |||||||||||||||||||
Total non-interest expense | $ | 377,087 | $ | 327,636 | $ | 49,451 | 15.1 | % |
June 30, 2024 | December 31, 2023 | Increase (Decrease) | |||||||||||||||||||||
$ | % | ||||||||||||||||||||||
Assets | (dollars in thousands) | ||||||||||||||||||||||
Cash and cash equivalents | $ | 1,396,282 | $ | 549,710 | $ | 846,572 | N/M | ||||||||||||||||
FRB and FHLB Stock | 125,297 | 124,405 | 892 | 0.7 | |||||||||||||||||||
Loans held for sale | 26,822 | 15,158 | 11,664 | 76.9 | |||||||||||||||||||
Investment securities | 4,184,027 | 3,666,274 | 517,753 | 14.1 | |||||||||||||||||||
Net loans, less ACL - loans | 23,730,356 | 21,057,690 | 2,672,666 | 12.7 | |||||||||||||||||||
Net premises and equipment | 180,642 | 222,881 | (42,239) | (19.0) | |||||||||||||||||||
Goodwill and intangibles | 648,026 | 560,687 | 87,339 | 15.6 | |||||||||||||||||||
Other assets | 1,478,361 | 1,375,110 | 103,251 | 7.5 | |||||||||||||||||||
Total Assets | $ | 31,769,813 | $ | 27,571,915 | $ | 4,197,898 | 15.2 | % | |||||||||||||||
Liabilities and Shareholders' Equity | |||||||||||||||||||||||
Deposits | $ | 25,559,654 | $ | 21,537,623 | $ | 4,022,031 | 18.7 | % | |||||||||||||||
Borrowings | 2,178,597 | 2,487,526 | (308,929) | (12.4) | |||||||||||||||||||
Other liabilities | 929,953 | 786,627 | 143,326 | 18.2 | |||||||||||||||||||
Total Liabilities | 28,668,204 | 24,811,776 | 3,856,428 | 15.5 | |||||||||||||||||||
Total Shareholders' Equity | 3,101,609 | 2,760,139 | 341,470 | 12.4 | |||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 31,769,813 | $ | 27,571,915 | $ | 4,197,898 | 15.2 | % |
June 30, 2024 | December 31, 2023 | Increase (Decrease) | |||||||||||||||||||||
$ | % | ||||||||||||||||||||||
Available for Sale | (dollars in thousands) | ||||||||||||||||||||||
U.S. Government securities | $ | — | $ | 42,161 | $ | (42,161) | N/M | ||||||||||||||||
U.S. Government-sponsored agency securities | — | 1,010 | (1,010) | N/M | |||||||||||||||||||
State and municipal securities | 820,109 | 1,072,013 | (251,904) | (23.5) | |||||||||||||||||||
Corporate debt securities | 337,398 | 440,551 | (103,153) | (23.4) | |||||||||||||||||||
Collateralized mortgage obligations | 713,769 | 111,434 | 602,335 | N/M | |||||||||||||||||||
Residential mortgage-backed securities | 557,191 | 196,795 | 360,396 | N/M | |||||||||||||||||||
Commercial mortgage-backed securities | 511,127 | 534,388 | (23,261) | (4.4) | |||||||||||||||||||
Total available for sale securities | 2,939,594 | 2,398,352 | 541,242 | 22.6 | |||||||||||||||||||
Held to Maturity | |||||||||||||||||||||||
Residential mortgage-backed securities | 384,956 | 407,075 | (22,119) | (5.4) | |||||||||||||||||||
Commercial mortgage-backed securities | 859,477 | 860,847 | (1,370) | (0.2) | |||||||||||||||||||
Total held to maturity securities | 1,244,433 | 1,267,922 | (23,489) | (1.9) | |||||||||||||||||||
Total Investment Securities | $ | 4,184,027 | $ | 3,666,274 | $ | 517,753 | 14.1 | % |
June 30, 2024 | December 31, 2023 | Increase (Decrease) | |||||||||||||||||||||
$ | % | ||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Real estate - commercial mortgage | $ | 9,289,770 | $ | 8,127,728 | $ | 1,162,042 | 14.3% | ||||||||||||||||
Commercial and industrial(1) | 4,967,796 | 4,545,552 | 422,244 | 9.3% | |||||||||||||||||||
Real estate - residential mortgage | 6,248,856 | 5,325,923 | 922,933 | 17.3% | |||||||||||||||||||
Real estate - home equity | 1,120,878 | 1,047,184 | 73,694 | 7.0% | |||||||||||||||||||
Real estate - construction | 1,463,799 | 1,239,075 | 224,724 | 18.1% | |||||||||||||||||||
Consumer | 692,086 | 729,318 | (37,232) | (5.1)% | |||||||||||||||||||
Leases and other loans(2) | 323,112 | 336,314 | (13,202) | (3.9)% | |||||||||||||||||||
Net loans | $ | 24,106,297 | $ | 21,351,094 | $ | 2,755,203 | 12.9% |
June 30, 2024 | December 31, 2023 | ||||||||||
Real estate(1) | 43.0 | % | 46.6 | % | |||||||
Health care | 6.2 | 6.6 | |||||||||
Retail | 6.2 | 3.3 | |||||||||
Manufacturing | 5.9 | 6.1 | |||||||||
Other services | 5.2 | 4.5 | |||||||||
Agriculture | 5.0 | 5.6 | |||||||||
Hospitality and food services | 4.2 | 3.6 | |||||||||
Construction(2) | 3.7 | 4.1 | |||||||||
Wholesale trade | 2.9 | 3.2 | |||||||||
Educational services | 2.9 | 2.9 | |||||||||
Professional, scientific and technical services | 2.6 | 2.2 | |||||||||
Arts, entertainment and recreation | 2.2 | 1.9 | |||||||||
Transportation and warehousing | 1.7 | 1.7 | |||||||||
Finance and Insurance | 1.4 | 1.3 | |||||||||
Public administration | 1.2 | 1.0 | |||||||||
Administrative and Support | 0.9 | 1.1 | |||||||||
Other | 4.8 | 4.3 | |||||||||
Total | 100.0 | % | 100.0 | % |
June 30, 2024 | December 31, 2023 | ||||||||||||||||||||||
$ | % | $ | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Multi-family | $ | 1,431,845 | 5.9 | % | $ | 1,147,612 | 5.4 | % | |||||||||||||||
Retail trade | 1,125,962 | 4.7 | 893,029 | 4.2 | |||||||||||||||||||
Industrial | 867,391 | 3.6 | 634,533 | 3.0 | |||||||||||||||||||
Office | 781,608 | 3.2 | 640,403 | 3.0 | |||||||||||||||||||
Hospitality and food services | 469,453 | 1.9 | 453,305 | 2.1 | |||||||||||||||||||
Other | 506,528 | 2.1 | 498,122 | 2.3 | |||||||||||||||||||
Total non-owner occupied commercial mortgage loans | $ | 5,182,787 | 21.5 | % | $ | 4,267,004 | 20.0 | % |
June 30, 2024 | December 31, 2023 | ||||||||||||||||||||||||||||||||||
Outstanding Balance | Total Commitment | Weighted Average LTV (1) | Outstanding Balance | Total Commitment | Weighted Average LTV (1) | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Philadelphia(2) | $ | 334,294 | $ | 372,558 | 65 | % | $ | 241,596 | $ | 247,395 | 56 | % | |||||||||||||||||||||||
New York(3) | 99,019 | 104,560 | 68 | 60,149 | 62,565 | 71 | |||||||||||||||||||||||||||||
Washington, D.C.(4) | 91,920 | 91,920 | 56 | 97,270 | 97,847 | 56 | |||||||||||||||||||||||||||||
Baltimore (5) | 83,206 | 84,303 | 47 | 82,573 | 82,577 | 51 | |||||||||||||||||||||||||||||
Other | 173,169 | 185,021 | 63 | 158,815 | 161,533 | 61 | |||||||||||||||||||||||||||||
Total office non-owner occupied commercial real estate | $ | 781,608 | $ | 838,362 | 62 | % | $ | 640,403 | $ | 651,917 | 58 | % |
June 30, 2024 | December 31, 2023 | ||||||||||||||||||||||||||||||||||
Outstanding Balance | Total Commitment | Weighted Average LTV (1) | Outstanding Balance | Total Commitment | Weighted Average LTV (1) | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Philadelphia(2) | $ | 676,646 | $ | 709,088 | 61 | % | $ | 467,749 | $ | 480,942 | 57 | % | |||||||||||||||||||||||
New York(3) | 124,458 | 131,619 | 71 | 53,153 | 53,642 | 72 | |||||||||||||||||||||||||||||
Baltimore(4) | 69,295 | 69,475 | 61 | 54,675 | 54,879 | 56 | |||||||||||||||||||||||||||||
Washington, D.C.(5) | 31,032 | 33,493 | 43 | 87,020 | 92,483 | 51 | |||||||||||||||||||||||||||||
Lancaster, PA | 134,548 | 143,668 | 69 | 159,691 | 169,437 | 66 | |||||||||||||||||||||||||||||
Other | 395,866 | 437,354 | 60 | 325,324 | 361,693 | 65 | |||||||||||||||||||||||||||||
Total multi-family non-owner occupied commercial real estate | $ | 1,431,845 | $ | 1,524,697 | 62 | % | $ | 1,147,612 | $ | 1,213,076 | 59 | % |
Commercial and Industrial | Real Estate - Commercial Mortgage | Real Estate - Construction | Real Estate - Residential Mortgage | Consumer and Real Estate - Home Equity | Leases and other loans | Total | |||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2024 | $ | 43,735 | $ | 45,961 | $ | 1,286 | $ | 23,245 | $ | 5,310 | $ | 10,091 | $ | 129,628 | |||||||||||||||||||||||||||
Additions | 24,420 | 13,078 | — | 3,272 | 3,593 | 1,664 | 46,027 | ||||||||||||||||||||||||||||||||||
Payments | (7,386) | (4,994) | (60) | (1,771) | (425) | (404) | (15,040) | ||||||||||||||||||||||||||||||||||
Charge-offs | (2,955) | (7,853) | — | (35) | (1,766) | (1,398) | (14,007) | ||||||||||||||||||||||||||||||||||
Transfers to accrual status | (540) | — | — | — | — | — | (540) | ||||||||||||||||||||||||||||||||||
Transfers to OREO | — | — | — | (248) | (190) | — | (438) | ||||||||||||||||||||||||||||||||||
Balance at June 30, 2024 | $ | 57,274 | $ | 46,192 | $ | 1,226 | $ | 24,463 | $ | 6,522 | $ | 9,953 | $ | 145,630 | |||||||||||||||||||||||||||
Six months ended June 30, 2024 | |||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2023 | $ | 39,952 | $ | 44,805 | $ | 1,341 | $ | 20,824 | $ | 4,805 | $ | 9,893 | $ | 121,620 | |||||||||||||||||||||||||||
Additions | 55,362 | 24,316 | — | 5,974 | 6,746 | 2,912 | 95,310 | ||||||||||||||||||||||||||||||||||
Payments | (19,450) | (14,870) | (115) | (2,165) | (697) | (649) | (37,946) | ||||||||||||||||||||||||||||||||||
Charge-offs | (10,587) | (7,879) | — | (286) | (4,004) | (2,203) | (24,959) | ||||||||||||||||||||||||||||||||||
Transfers to accrual status | (8,003) | (180) | — | (142) | (138) | — | (8,463) | ||||||||||||||||||||||||||||||||||
Transfers to OREO | — | — | — | 258 | (190) | — | 68 | ||||||||||||||||||||||||||||||||||
Balance at June 30, 2024 | $ | 57,274 | $ | 46,192 | $ | 1,226 | $ | 24,463 | $ | 6,522 | $ | 9,953 | $ | 145,630 |
June 30, 2024 | December 31, 2023 | ||||||||||
(dollars in thousands) | |||||||||||
Non-accrual loans | $ | 145,630 | $ | 121,620 | |||||||
Loans 90 days or more past due and still accruing | 26,962 | 31,721 | |||||||||
Total non-performing loans | 172,592 | 153,341 | |||||||||
OREO(1) | 1,444 | 896 | |||||||||
Total non-performing assets | $ | 174,036 | $ | 154,237 | |||||||
Non-accrual loans to total loans | 0.60 | % | 0.57 | % | |||||||
Non-performing loans to total loans | 0.72 | % | 0.72 | % | |||||||
Non-performing assets to total assets | 0.55 | % | 0.56 | % | |||||||
ACL - loans to non-performing loans | 218 | % | 191 | % |
Special Mention(1) | Increase (Decrease) | Substandard or Lower(2) | Increase (Decrease) | Total Criticized and Classified Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2024 | December 31, 2023 | $ | % | June 30, 2024 | December 31, 2023 | $ | % | June 30, 2024 | December 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate - commercial mortgage | $ | 755,031 | $ | 302,553 | $ | 452,478 | 149.6% | $ | 373,983 | $ | 224,774 | $ | 149,209 | 66.4 | % | $ | 1,129,014 | $ | 527,327 | ||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | 393,976 | 135,837 | 258,139 | 190.0 | 300,484 | 196,500 | 103,984 | 52.9 | 694,460 | 332,337 | |||||||||||||||||||||||||||||||||||||||||||||||||
Real estate - construction(3) | 126,897 | 38,520 | 88,377 | 229.4 | 51,382 | 26,771 | 24,611 | 91.9 | 178,279 | 65,291 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 1,275,904 | $ | 476,910 | $ | 798,994 | 167.5% | $ | 725,849 | $ | 448,045 | $ | 277,804 | 62.0% | $ | 2,001,753 | $ | 924,955 | |||||||||||||||||||||||||||||||||||||||||
% of total risk rated loans | 8.2 | % | 3.5 | % | 4.7 | % | 3.3 | % | 12.9 | % | 6.8 | % |
Three months ended June 30 | Six months ended June 30 | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Average balance of net loans | $ | 23,345,914 | $ | 20,866,235 | $ | 22,357,972 | $ | 20,665,779 | |||||||||||||||
Balance of ACL at beginning of period | $ | 297,888 | $ | 278,695 | $ | 293,404 | $ | 269,366 | |||||||||||||||
CECL Day 1 Provision(1) | 23,444 | — | 23,444 | — | |||||||||||||||||||
Initial PCD allowance for credit losses | 55,906 | — | 55,906 | — | |||||||||||||||||||
Loans charged off: | |||||||||||||||||||||||
Real estate - commercial mortgage | (7,853) | (230) | (7,879) | (13,592) | |||||||||||||||||||
Commercial and industrial | (2,955) | (2,017) | (10,587) | (2,629) | |||||||||||||||||||
Real estate - residential mortgage | (35) | (62) | (286) | (62) | |||||||||||||||||||
Consumer and real estate - home equity | (1,766) | (1,313) | (4,004) | (3,519) | |||||||||||||||||||
Real estate - construction | — | — | — | — | |||||||||||||||||||
Leases and other loans | (1,398) | (1,165) | (2,203) | (1,888) | |||||||||||||||||||
Total loans charged off | (14,007) | (4,787) | (24,959) | (21,690) | |||||||||||||||||||
Recoveries of loans previously charged off: | |||||||||||||||||||||||
Real estate - commercial mortgage | 146 | 29 | 298 | 815 | |||||||||||||||||||
Commercial and industrial | 796 | 988 | 2,044 | 2,074 | |||||||||||||||||||
Real estate - residential mortgage | 122 | 58 | 238 | 106 | |||||||||||||||||||
Consumer and real estate - home equity | 1,161 | 959 | 1,837 | 1,620 | |||||||||||||||||||
Real estate - construction | 233 | 569 | 233 | 771 | |||||||||||||||||||
Leases and other loans | 247 | 213 | 409 | 329 | |||||||||||||||||||
Total recoveries | 2,705 | 2,816 | 5,059 | 5,715 | |||||||||||||||||||
Net loans charged off (recoveries) | (11,302) | (1,971) | (19,900) | (15,975) | |||||||||||||||||||
Provision for credit losses(1)(2) | 10,005 | 10,718 | 23,087 | 34,051 | |||||||||||||||||||
Balance of ACL at end of period | $ | 375,941 | $ | 287,442 | $ | 375,941 | $ | 287,442 | |||||||||||||||
Provision for OBS credit exposures(1) | $ | (1,393) | $ | (971) | $ | (3,550) | $ | 240 | |||||||||||||||
Reserve for OBS credit exposures(3) | $ | 14,540 | $ | 16,568 | $ | 14,540 | $ | 16,568 | |||||||||||||||
Net charge-offs to average loans (annualized) | 0.19 | % | 0.04 | % | 0.18 | % | 0.15 | % |
June 30, 2024 | December 31, 2023 | ||||||||||||||||||||||||||||||||||
ACL - loans | % to Total ACL - loans(1) | % to Total Net Loans(2) | ACL - loans | % to Total ACL - loans(1) | % to Total Net Loans(2) | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Real estate - commercial mortgage | $ | 156,165 | 41.5 | % | 38.5 | % | $ | 112,565 | 38.4 | % | 38.1 | % | |||||||||||||||||||||||
Commercial and industrial | 94,623 | 25.2 | 20.6 | 74,266 | 25.3 | 21.3 | |||||||||||||||||||||||||||||
Real estate - residential mortgage | 89,714 | 23.9 | 25.9 | 73,286 | 25.0 | 24.9 | |||||||||||||||||||||||||||||
Consumer, home equity and leases and other loans | 20,829 | 5.5 | 8.9 | 20,992 | 7.1 | 9.9 | |||||||||||||||||||||||||||||
Real estate - construction | 14,610 | 3.9 | 6.1 | 12,295 | 4.2 | 5.8 | |||||||||||||||||||||||||||||
Total ACL - loans | $ | 375,941 | 100.0 | % | 100.0 | % | $ | 293,404 | 100.0 | % | 100.0 | % |
June 30, 2024 | December 31, 2023 | Increase (Decrease) | |||||||||||||||||||||
$ | % | ||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Noninterest-bearing demand | $ | 5,609,383 | $ | 5,314,094 | $ | 295,289 | 5.6 | % | |||||||||||||||
Interest-bearing demand | 7,478,077 | 5,722,695 | 1,755,382 | 30.7 | |||||||||||||||||||
Savings and money market deposits | 7,563,495 | 6,616,901 | 946,594 | 14.3 | |||||||||||||||||||
Total demand and savings | 20,650,955 | 17,653,690 | 2,997,265 | 17.0 | |||||||||||||||||||
Brokered deposits | 995,975 | 1,144,692 | (148,717) | (13.0) | |||||||||||||||||||
Time deposits | 3,912,724 | 2,739,241 | 1,173,483 | 42.8 | |||||||||||||||||||
Total deposits | $ | 25,559,654 | $ | 21,537,623 | $ | 4,022,031 | 18.7 | % |
June 30, 2024 | December 31, 2023 | Increase (Decrease) | |||||||||||||||||||||
$ | % | ||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Federal funds purchased | $ | — | $ | 240,000 | $ | (240,000) | N/M | ||||||||||||||||
Federal Home Loan Bank advances | 750,000 | 1,100,000 | (350,000) | (31.8) | |||||||||||||||||||
Senior debt and subordinated debt | 535,741 | 535,384 | 357 | 0.1 | |||||||||||||||||||
Other borrowings(1) | 892,856 | 612,142 | 280,714 | 45.9 | |||||||||||||||||||
Total borrowings | $ | 2,178,597 | $ | 2,487,526 | $ | (308,929) | (12.4) | % | |||||||||||||||
June 30, 2024 | December 31, 2023 | Regulatory Minimum for Capital Adequacy | With Capital Conservation Buffer | ||||||||||||||||||||
Total Risk-Based Capital (to Risk-Weighted Assets) | 13.8 | % | 14.0 | % | 8.0 | % | 10.5 | % | |||||||||||||||
Tier I Risk-Based Capital (to Risk-Weighted Assets) | 11.1 | % | 11.2 | % | 6.0 | % | 8.5 | % | |||||||||||||||
Common Equity Tier I (to Risk-Weighted Assets) | 10.3 | % | 10.3 | % | 4.5 | % | 7.0 | % | |||||||||||||||
Tier I Leverage Capital (to Average Assets) | 9.2 | % | 9.5 | % | 4.0 | % | 4.0 | % |
Rate Shock(1) | Annual change in net interest income | % change in net interest income | |||||||||
+400 bp | + $47.6 million | +4.2% | |||||||||
+300 bp | + $36.9 million | +3.3% | |||||||||
+200 bp | + $26.2 million | +2.3% | |||||||||
+100 bp | + $15.5 million | +1.4% | |||||||||
–100 bp | - $36.1 million | -3.2% | |||||||||
–200 bp | - $73.3 million | -6.5% | |||||||||
–300 bp | - $104.6 million | -9.3% | |||||||||
–400 bp | - $127.7 million | -11.4% |
1.1 | |||||||||||
2.1 | |||||||||||
3.1 | |||||||||||
3.2 | |||||||||||
3.3 | |||||||||||
4.1 | |||||||||||
4.2 | |||||||||||
4.3 | |||||||||||
4.4 | |||||||||||
10.1 | |||||||||||
10.2 | |||||||||||
31.1 | |||||||||||
31.2 | |||||||||||
32.1 | |||||||||||
32.2 | |||||||||||
101 | Interactive data files pursuant to Rule 405 of Regulation S-T: (i) Unaudited Consolidated Balance Sheets, (ii) Unaudited Consolidated Statements of Income, (iii) Unaudited Consolidated Statements of Comprehensive Income, (iv) Unaudited Consolidated Statements of Shareholders' Equity, (v) Consolidated Statements of Cash Flows, and (vi) Notes to Consolidated Financial Statements. | ||||||||||
104 | Cover page interactive data file (formatted as inline XBRL and contained in Exhibit 101) | ||||||||||
FULTON FINANCIAL CORPORATION | ||||||||||||||
Date: | August 8, 2024 | /s/ Curtis J. Myers | ||||||||||||
Curtis J. Myers | ||||||||||||||
Chairman and Chief Executive Officer | ||||||||||||||
Date: | August 8, 2024 | /s/ Beth Ann L. Chivinski | ||||||||||||
Beth Ann L. Chivinski | ||||||||||||||
Senior Executive Vice President and Interim Chief Financial Officer | ||||||||||||||
Granted To: | [PARTICIPANT_NAME] | ||||
Date of Grant: | [GRANT_DATE] | ||||
Number of Time-Vested RSUs Granted: | [TOTAL_AWARDS] | ||||
Restricted Period: | Unless your Award is forfeited before the end of the Restricted Period, the Restricted Period will end one year after the Date of Grant. | ||||
Death, Disability or Retirement: | Your Award will vest and Shares will be delivered to you upon your death, Disability or Retirement (unless a deferral election has been made with respect to the Shares). | ||||
Change in Control: | In the event of a termination of Continuous Service during the 12-month period following a Change in Control, the Restricted Period will immediately expire. | ||||
Right to Dividend Equivalents: | Each RSU (representing one Share) may be credited with Shares equivalent to all the dividends paid with respect to the outstanding Common Stock paid by Fulton in respect of one Share. | ||||
Forfeiture: | Your Award is subject to forfeiture until the expiration of the Restricted Period, including all Dividend Equivalents, pursuant to the terms of the 2023 Plan. |
Deferral: | [You have not elected to defer the payment of the Shares underlying the RSUs at the end of the Restricted Period, and you will receive payment of the Shares together with the accumulated Dividend Equivalents in Common Stock at the end of the Restricted Period.] [You have elected to defer payment of the Shares underlying the RSUs at the end of the Restricted Period together with any accumulated Dividend Equivalents, and you will receive [a single issuance] [three annual installments] of Shares and accrued Dividend Equivalents in accordance with your deferral election.] | ||||
Timing of Award Payment: | Unless otherwise expressly set forth herein, payment will be made in the form of Shares within 60 days following the end of the Restricted Period. |
Date: | August 8, 2024 | |||||||
/s/ Curtis J. Myers | ||||||||
Curtis J. Myers | ||||||||
Chairman and Chief Executive Officer |
Date: | August 8, 2024 | |||||||
/s/ Beth Ann L. Chivinski | ||||||||
Beth Ann L. Chivinski | ||||||||
Senior Executive Vice President and Interim Chief Financial Officer |
Date: | August 8, 2024 | |||||||
/s/ Curtis J. Myers | ||||||||
Curtis J. Myers | ||||||||
Chairman and Chief Executive Officer |
August 8, 2024 | |||||
/s/ Beth Ann L. Chivinski | |||||
Beth Ann L. Chivinski | |||||
Senior Executive Vice President and Interim Chief | |||||
Financial Officer |
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Consolidated Balance Sheets (Parenthetical) - $ / shares |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 200,000 | 200,000 |
Liquidation preference (in dollars per share) | $ 1,000 | $ 1,000 |
Common stock, par value (in dollars per share) | $ 2.50 | $ 2.50 |
Common stock, shares authorized (in shares) | 600,000,000 | 600,000,000 |
Common stock, shares issued (in shares) | 245,809,384 | 225,760,963 |
Treasury stock, shares (in shares) | 63,978,306 | 61,959,552 |
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends per share (in dollars per share) | $ 0.17 | $ 0.16 | $ 0.34 | $ 0.31 |
Basis of Presentation |
6 Months Ended |
---|---|
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited Consolidated Financial Statements of the Corporation have been prepared in conformity with GAAP for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts of assets and liabilities as of the date of the financial statements as well as revenues and expenses during the period. Actual results could differ from those estimates. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and the notes thereto included in the Corporation's Annual Report on Form 10-K for the year ended December 31, 2023. Operating results for the three and six months ended June 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. The Corporation evaluates subsequent events through the date of filing of this Quarterly Report on Form 10-Q with the SEC for potential recognition or disclosure in the Consolidated Financial Statements. Significant Accounting Policies The significant accounting policies used in preparation of the Consolidated Financial Statements are disclosed in the Corporation's Annual Report on Form 10-K for the year ended December 31, 2023. Those significant accounting policies are unchanged at June 30, 2024. Recently Adopted Accounting Standards In June 2022, FASB issued ASU 2022-03 Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions ("ASU 2022-03"). This update clarifies how the fair value of equity securities subject to contractual sale restrictions is determined and requires additional qualitative and quantitative disclosures for equity securities with contractual sale restrictions. The Corporation adopted ASU 2022-03 on January 1, 2024, and it did not have a material impact on its consolidated financial statements. In March 2023, FASB issued ASU 2023-01 Leases (Topic 842): Common Control Arrangements ("ASU 2023-01"). This update clarifies guidance for leases between related parties under common control. The Corporation adopted ASU 2023-01 on January 1, 2024, and it did not have a material impact on its consolidated financial statements. Recently Issued Accounting Standards In November 2023, FASB issued ASU 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ("ASU 2023-07"). This update requires public entities with reportable segments to provide additional and more detailed disclosures. The Corporation will adopt ASU 2023-07 on December 15, 2024. The Corporation is not currently required to report segment information and, as such, does not expect the adoption of ASU 2023-07 to have an impact on its consolidated financial statements. In December 2023, FASB issued ASU 2023-08 Intangibles - Goodwill and Other - Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets ("ASU 2023-08"). This update provides guidance for crypto assets to be carried at fair value and requires additional disclosures. The Corporation will adopt ASU 2023-08 on January 1, 2025. The Corporation does not expect the adoption of ASU 2023-08 to have an impact on its consolidated financial statements. The Corporation currently does not hold crypto assets. In December 2023, FASB issued ASU 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09"). This update requires companies to disclose specific categories in the income tax rate reconciliation and requires additional information for certain reconciling items. The Corporation will adopt ASU 2023-09 on January 1, 2025. The Corporation does not expect the adoption of ASU 2023-09 to have an impact on its consolidated financial statements. In March 2024, FASB issued ASU 2024-01 Compensation - Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards ("ASU 2024-01"). This update provides guidance for profits interest and similar awards. The Corporation will adopt ASU 2024-01 on January 1, 2025. The Corporation does not expect the adoption of ASU 2024-01 to have a material impact on its consolidated financial statements. Reclassifications Certain amounts in the 2023 consolidated financial statements and notes have been reclassified to conform to the 2024 presentation.
|
Business Combinations |
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Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations | Business Combinations On the Acquisition Date, Fulton Bank acquired substantially all of the assets and assumed substantially all of the deposits and certain liabilities of Republic First Bank from the FDIC, as receiver for Republic First Bank. As part of the Republic First Transaction, the Bank acquired approximately $4.8 billion of assets of Republic First Bank and received approximately $0.8 billion of cash from the FDIC. The Bank assumed approximately $5.6 billion of total liabilities of Republic First Bank. The Bank did not enter into a loss sharing arrangement with the FDIC in connection with the Republic First Transaction. Fulton Bank also has the option to purchase the Republic First Bank branches and office locations. As a result of the Republic First Transaction, the Bank enhanced its presence in Philadelphia, Pennsylvania and New Jersey. The Republic First Transaction constitutes a business combination as defined by FASB ASC Topic 805, Business Combinations. Accordingly, the assets acquired and liabilities assumed are presented at their estimated fair values based on preliminary valuations as of the Acquisition Date. The determination of estimated fair values required management to make certain estimates about discount rates, future expected cash flows and market conditions at the time of the Republic First Transaction. The Bank and the FDIC are awaiting conclusion of the customary final settlement process to determine whether certain assets and liabilities of Republic First Bank will remain with the FDIC or be acquired by the Bank. Until management finalizes its fair value estimates for the acquired assets and assumed liabilities, the preliminary gain on acquisition can be updated for a period not to exceed one year following the Acquisition Date. The preliminary fair value estimates of assets acquired and liabilities assumed, provide a reasonable basis for determining the preliminary gain on acquisition. The excess of the estimated fair value of net assets acquired and the cash consideration received from the FDIC over the estimated fair value of liabilities assumed was recorded as a preliminary gain on acquisition of $47.4 million, net of income taxes. The following table summarizes the consideration transferred and the estimated fair values of identifiable assets acquired and liabilities assumed in connection with the Republic First Transaction on the Acquisition Date:
The following is a description of the valuation methodologies used to estimate the fair values of major categories of assets acquired and liabilities assumed. Cash and due from banks: The fair values of cash and due from banks approximate their book values. Investment securities: The investment portfolio acquired in the Republic First Transaction, with a fair value of $1.9 billion, was sold shortly after the Acquisition Date by the Corporation. The fair value of the investment portfolio was based on the proceeds from the sale. Loans: The Corporation recorded $2.5 billion of acquired loans that were initially recorded at their estimated fair values as of the Acquisition Date. The estimated fair value for the loans was based on a discounted cash flow methodology that considered credit loss and prepayment expectations, market interest rates and other market factors from the perspective of a market participant. Loan cash flows were generated on an individual loan basis. The PD, LGD, exposure at default and prepayment assumptions are the key factors driving credit losses that are embedded in the estimated cash flows. The following table presents information with respect to the estimated fair value and unpaid principal balance of acquired loans and leases at the Acquisition Date:
The following table summarizes PCD Loans:
The Republic First Transaction resulted in the addition of $79.4 million to the ACL, including the $55.9 million identified in the table above for PCD Loans, and $23.4 million recorded through the provision for credit losses at the Acquisition Date for non-PCD Loans. Intangible assets: The Corporation recorded $92.6 million of CDI reflected in other assets that is being amortized over seven years using the sum-of-the-years digits method. The estimated fair value of the CDI was determined using the cost savings approach. The cost savings approach is defined as the difference between the cost of funds of core deposits and an alternative cost of funds for those deposits. The CDI estimated fair value was determined by projecting discounted net cash flows that included assumptions related to customer attrition rates, discount rates, deposit interest rates, deposit account maintenance costs and alternative cost of funding rates. FHLB stock: The Corporation acquired $37.9 million of FHLB stock. The estimated fair value of the FHLB stock approximated its book value. Accrued interest receivable: The Corporation acquired $16.2 million of accrued interest receivable. The fair value of the accrued interest receivable approximated its book value. Core deposits: Demand deposits, savings and money market deposits and time deposits (less than $250,000) were recorded at book value which approximated fair value. The Corporation recorded $92.6 million of CDI in other assets for these deposits. Time deposits: Time deposits of $250,000 and greater were valued based on a comparison with the contractual cost of a portfolio of brokered deposits having a similar tenor. As the time deposit portfolio had a remaining average life of approximately three months, the estimated fair value of the time deposits approximated their book value and no adjustment was recorded. Borrowings: The estimated fair values for borrowings approximated their book value given these were short-term advances. Assumed borrowings were subsequently repaid. Acquisition-related expenses: The Corporation developed a comprehensive integration plan under which it incurred direct costs that are expensed as incurred. For the second quarter of 2024, these direct costs included professional fees, a charitable donation, severance, and marketing expense. Costs related to the Republic First Transaction are included in acquisition-related expenses in the unaudited Consolidated Statements of Income. The following table details the costs identified and classified as acquisition-related expenses:
In connection with the Republic First Transaction, Fulton Bank made a $5.0 million donation to the Fulton Forward Foundation to provide additional impact grants to nonprofit community organizations across the region that share Fulton Bank's vision of advancing economic empowerment, particularly in underserved communities. Unaudited Pro Forma Information: The amount of net interest income, non-interest income, non-interest expense and net income of $30.7 million, $50.2 million, $21.1 million and $38.8 million, respectively, attributable to the Republic First Transaction were included in the Corporation's unaudited Consolidated Statements of Income for the three months and six months ended June 30, 2024. Included in non-interest income above is $47.4 million related to the gain on acquisition, net of tax. Net interest income, non-interest income, non-interest expense and net income shown above reflect management's best estimates based on information available as of the date of the filing of this Quarterly Report on Form 10-Q. Republic First Bank does not have historical financial information that the Corporation could base pro forma information. Additionally, the Bank did not acquire all of the assets or assume all of the liabilities of Republic First Bank. Therefore, it is impracticable to provide pro forma information on revenues and earnings for the Republic First Transaction in accordance with ASC 805-10-50-2.
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Restrictions on Cash and Cash Equivalents |
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Jun. 30, 2024 | |
Cash and Cash Equivalents [Abstract] | |
Restrictions on Cash and Cash Equivalents | Restrictions on Cash and Cash Equivalents Cash collateral is posted by the Corporation with counterparties to secure derivatives and other contracts, which is included in "interest-bearing deposits with other banks" on the consolidated balance sheets. The amounts of such collateral as of June 30, 2024 and December 31, 2023 were $10.9 million and $17.4 million, respectively.
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Investment Securities |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities | Investment Securities The following table presents the amortized cost and estimated fair values of investment securities:
In May 2024, the Corporation sold $345.7 million AFS securities and recorded a pre-tax loss of $20.3 million. The proceeds from the sale were reinvested into higher-yielding securities of a similar type and similar duration. Securities carried at $1.2 billion and $0.4 billion at June 30, 2024 and December 31, 2023, respectively, were pledged as collateral to secure public and trust deposits. The amortized cost and estimated fair values of debt securities as of June 30, 2024, by contractual maturity, are shown in the following table. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay with or without call or prepayment penalties.
(1) Maturities for mortgage-backed securities and collateralized mortgage obligations are dependent upon the interest rate environment and prepayments on the underlying loans. The following table presents information related to gross realized gains and losses on the sales of securities:
The following tables present the gross unrealized losses and estimated fair values of investment securities aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position:
The Corporation's collateralized mortgage obligations, residential mortgage-backed securities and commercial mortgage-backed securities have contractual terms that generally do not permit the issuer to settle the securities at a price less than the amortized cost of the investment. The change in fair value of these securities is attributable to changes in interest rates and not credit quality. The Corporation does not have the intent to sell and does not believe it will more likely than not be required to sell any of these securities prior to a recovery of their fair value to amortized cost. Therefore, the Corporation did not record a loss on these investments as of June 30, 2024 and December 31, 2023. As of June 30, 2024 and December 31, 2023, no ACL was required for the Corporation's state and municipal securities. The Corporation does not have the intent to sell and does not believe it will more likely than not be required to sell any of these securities prior to a recovery of their fair value to amortized cost, which may be at maturity. Therefore, the Corporation did not record a loss on these investments as of June 30, 2024 and December 31, 2023. The majority of the corporate debt securities were rated at or above investment grade as of June 30, 2024 and December 31, 2023. Based on the payment status, rating and management's evaluation of these securities, no ACL was required for corporate debt securities as of June 30, 2024 and December 31, 2023. The Corporation does not have the intent to sell and does not believe it will more likely than not to be required to sell any of these securities prior to a recovery of their fair value to amortized cost, which may be at maturity. Therefore, the Corporation did not record a loss on these investments as of June 30, 2024 and December 31, 2023.
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Loans and Allowance for Credit Losses |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans and Allowance for Credit Losses | Loans and Allowance for Credit Losses Loans and leases, net of unearned income Loans and leases, net of unearned income, are summarized as follows:
(1) Includes no unearned income at June 30, 2024 and $41.0 thousand at December 31, 2023. (2) Includes unearned income of $36.6 million at June 30, 2024 and $38.0 million at December 31, 2023. Allowance for Credit Losses The ACL consists of reserves against loans that have been evaluated collectively and individually for expected credit losses. The ACL represents an estimate of expected credit losses over the expected life of the loans as of the balance sheet date and is recorded as a reduction to net loans. The ACL is increased by charges to expense, through the provision for credit losses, and decreased by charge-offs, net of recoveries. The reserve for OBS credit exposures includes estimated losses on unfunded loan commitments, letters of credit and other OBS credit exposures. The following table summarizes the ACL - loans balance and the reserve for OBS credit exposures balance:
(1) Included in other liabilities on the consolidated balance sheets. The following table presents the activity in the ACL - loans balances:
(1) The sum of these amounts are reflected in the provision for credit losses in the Consolidated Statements of Income. (2) Provision only includes the portion related to net loans. The following table presents the activity in the ACL by portfolio segment:
(1) These amounts are reflected in the provision for credit loss in the Consolidated Statements of Income. (2) Provision included in the table only includes the portion related to net loans. The ACL may include qualitative adjustments intended to capture the impact of uncertainties not reflected in the quantitative models. In determining qualitative adjustments, management considers changes in national, regional, and local economic and business conditions and their impact on the lending environment, including underwriting standards and other factors affecting credit losses over the remaining life of each loan. The increase in the ACL - loans for the second quarter of 2024 and for the six months ended June 30, 2024, was primarily due to loans acquired in the Republic First Transaction. Collateral-Dependent Loans A loan or a lease is considered to be collateral-dependent when the debtor is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. For all classes of loans and leases deemed collateral-dependent, the Corporation elected the practical expedient to estimate expected credit losses based on the collateral’s fair value less cost to sell. Substantially all of the collateral supporting collateral-dependent loans or leases consists of various types of real estate, including residential properties, commercial properties, such as retail centers, office buildings, and lodging, agricultural land, and vacant land. Commercial and industrial loans may also be secured by real estate. All loans individually evaluated for impairment are measured for losses on a quarterly basis. As of June 30, 2024 and December 31, 2023, substantially all of the Corporation's individually evaluated loans with total commitments greater than or equal to $1.0 million were measured based on the estimated fair value of each loan’s collateral, if any. As of June 30, 2024 and December 31, 2023, approximately 76% and 78%, respectively, of loans evaluated individually for impairment with principal balances greater than or equal to $1.0 million, whose primary collateral consisted of real estate, were measured at estimated fair value using appraisals performed by state certified third-party appraisers that had been updated in the preceding 12 months. Non-accrual Loans The following table presents total non-accrual loans, by class segment:
As of June 30, 2024 and December 31, 2023, there were $71.8 million and $52.8 million, respectively, of non-accrual loans that did not have a specific valuation allowance within the ACL. The estimated fair values of the collateral securing these loans exceeded their carrying amount, or the loans were previously charged down to realizable collateral values. Accordingly, no specific valuation allowance was considered to be necessary. Asset Quality Maintaining an appropriate ACL is dependent on various factors, including the ability to identify potential problem loans in a timely manner. For commercial construction, commercial and industrial, and commercial real estate, an internal risk rating process is used. The Corporation believes that internal risk ratings are the most relevant credit quality indicator for these types of loans. The migration of loans through the various internal risk categories is a significant component of the ACL methodology for these loans, which bases the PD on this migration. Assigning risk ratings involves judgment. The Corporation's loan review officers provide a separate assessment of risk rating accuracy. Risk ratings may be changed based on the ongoing monitoring procedures performed by loan officers or credit administration staff, or if specific loan review assessments identify a deterioration or an improvement in a loan. The following table summarizes designated internal risk rating categories by portfolio segment and loan class, by origination year, in the current period:
(1) Excludes real estate - construction - other. The increase of $799.0 million in special mention loans as of June 30, 2024 was primarily due to loans acquired in the Republic First Transaction with a balance of $776.9 million as of June 30, 2024. The increase of $277.8 million in substandard or lower loans as of June 30, 2024 was primarily due to loans acquired in the Republic First Transaction with a balance of $166.5 million as of June 30, 2024. The following table summarizes designated internal risk rating categories by portfolio segment and loan class, by origination year, in the prior period:
(1) Excludes real estate - construction - other. The Corporation considers the performance of the loan portfolio and its impact on the ACL. The Corporation does not assign internal risk ratings to smaller balance, homogeneous loans, such as home equity, residential mortgage, construction loans to individuals secured by residential real estate, consumer and other loans. For these loans, the most relevant credit quality indicator is delinquency status and the Corporation evaluates credit quality based on the aging status of the loan. The following tables present the amortized cost of these loans based on payment activity, by origination year, for the periods shown:
The following table presents non-performing assets:
(1) Excludes $24.2 million and $10.9 million of residential mortgage properties for which formal foreclosure proceedings were in process as of June 30, 2024 and December 31, 2023, respectively. The following tables present the aging of the amortized cost basis of loans, by class segment:
(1) Includes unearned income.
(1) Includes unearned income. Loan Modifications to Borrowers Experiencing Financial Difficulty The Corporation modifies loans by providing a concession when deemed appropriate. Depending on the circumstances, a term extension, interest rate reduction or principal forgiveness may be granted. In certain instances a combination of concessions may be provided to a borrower. When principal forgiveness is provided, the amount of principal forgiven is deemed to be uncollectible and the amortized cost basis of the loan is reduced by the amount of the forgiven portion, with a corresponding reduction to the ACL. The following table presents the amortized cost basis of the loans modified to borrowers experiencing financial difficulty, disaggregated by class of financing receivable and type of concession granted:
The following table presents the financial effect of the modifications made to borrowers experiencing financial difficulty:
(1) There were no loan modifications with interest rate reductions for the three months and six months ended June 30, 2023. During the three months and six months ended June 30, 2024 and 2023, there were no loans modified due to financial difficulty where there was a principal balance forgiveness. The following table presents the performance of loans that have been modified due to financial difficulty in the previous 12 months:
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Mortgage Servicing Rights |
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Mortgage Servicing Rights | Mortgage Servicing Rights The following table summarizes the changes in MSRs, which are included in other assets on the consolidated balance sheets, with adjustments to the carrying value included in mortgage banking income on the consolidated statements of income:
MSRs represent the economic value of contractual rights to service mortgage loans that have been sold. The total portfolio of mortgage loans serviced by the Corporation for unrelated third parties was $4.0 billion and $4.1 billion as of June 30, 2024 and December 31, 2023, respectively. Actual and expected prepayments of the underlying mortgage loans can impact the fair values of the MSRs. The Corporation accounts for MSRs at the lower of amortized cost or fair value. The fair value of MSRs is estimated by discounting the estimated cash flows from servicing income, net of expense, over the expected life of the underlying loans at a discount rate commensurate with the risk associated with these assets. Expected life is based on the contractual terms of the loans, as adjusted for prepayment projections. The fair values of MSRs were $51.7 million and $49.7 million as of June 30, 2024 and December 31, 2023, respectively. Based on its fair value analysis as of June 30, 2024, the Corporation determined that no valuation allowance was required as of June 30, 2024.
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Leases |
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Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | LEASES The Corporation has operating leases for certain financial centers, corporate offices and land. On May 10, 2024, the Bank and Fulton Financial Realty Company, a wholly owned subsidiary of the Corporation, entered into a sale-leaseback agreement for 40 financial center office locations for an aggregate cash purchase price of $55.4 million. The Bank entered into a lease for each of the locations sold in the Sale-Leaseback Transaction for an initial term of 15 years, with the option to extend the term of each for up to three successive terms of up to five years each. During the initial 12 months of the lease terms, the aggregate base rental amount for the properties will be approximately $4.4 million. During the initial lease terms, the base rental amount will increase annually at a rate of 2.25%. The Corporation recorded a pre-tax gain, after deduction of transaction-related expenses, of approximately $20.3 million in connection with the Sale-Leaseback Transaction. The properties are located in Pennsylvania, New Jersey, Delaware and Maryland. The following table presents the components of lease expense, which is included in net occupancy expense on the consolidated statements of income:
Supplemental consolidated balance sheet information related to leases was as follows:
The discount rate used in determining the lease liability for each individual lease is the Bank's incremental borrowing rate which corresponds with the remaining lease term. Supplemental cash flow information related to operating leases was as follows:
Lease payment obligations for each of the next five years and thereafter, with a reconciliation to the Corporation's lease liabilities were as follows as of June 30, 2024 (dollars in thousands):
As of June 30, 2024, the Corporation had not entered into any significant leases that have not yet commenced.
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Derivative Financial Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments The Corporation uses derivatives to manage its exposure to certain market risks, including interest rate and foreign currency risks, and to assist customers with their risk management objectives. Certain of the Corporation's outstanding derivative contracts are designated as hedges, and none are entered into for speculative purposes. The Corporation enters into derivative contracts that are intended to economically hedge certain of its risks, even if hedge accounting does not apply or the Corporation elects not to apply hedge accounting. In January 2023, the Corporation terminated interest rate derivatives designated as cash flow hedges with a combined notional amount of $1.0 billion. As the hedged transaction continues to be probable, the original unrealized loss of $70.6 million included in AOCI will be recognized as a reduction to interest income when the previously forecasted hedged item affects earnings in future periods. During the six months ended June 30, 2024, $14.1 million of these unrealized losses have been reclassified as a reduction of interest income on loans, including fees, on the Corporation's consolidated statements of income. In the third quarter of 2023, the Corporation transitioned certain of the Corporation's legacy commercial customer back-to-back interest rate swap transactions from LIBOR to SOFR. For the six months ended June 30, 2024, the increase to other non-interest income to reflect market valuation movements from the transition from LIBOR to SOFR was $0.3 million. For the year ended December 31, 2023, the full-year reduction to other non-interest income related to the transition from LIBOR to SOFR was $1.9 million. For additional information on our derivative accounting policies see Note 1 "Summary of Significant Accounting Policies" in our Annual Report on Form 10-K for the year ended December 31, 2023. The following table presents a summary of the notional amounts and fair values of derivative financial instruments:
(1) Fair Values are net of a valuation allowance of $366.3 thousand as of June 30, 2024 and December 31, 2023. The following table presents the effect of cash flow hedge accounting on AOCI:
During the next twelve months, the Corporation estimates that an additional $15.9 million of unrecognized losses will be reclassified as a decrease to net interest income. The following table presents the effect of fair value and cash flow hedge accounting on the income statement:
The following table presents a summary of the net fair value gains (losses) on derivative financial instruments:
(1) Includes interest rate locks with customers and forward commitments. The following table presents a summary of mortgage loans held for sale and the impact of the fair value election on the consolidated financial statements:
(1) Cost basis of mortgage loans held for sale represents the unpaid principal balance. Gains related to changes in fair values of mortgage loans held for sale were $0.3 million for the three months ended June 30, 2024 compared to a nominal amount for the three months ended June 30, 2023. Losses related to changes in fair values of mortgage loans held for sale were $0.1 million for the six months ended June 30, 2024 compared to gains of $0.1 million for the six months ended June 30, 2023. Balance Sheet Offsetting The fair values of interest rate derivative agreements and foreign exchange contracts the Corporation enters into with customers and dealer counterparties may be eligible for offset on the consolidated balance sheets if they are subject to master netting arrangements or similar agreements. The Corporation has elected to net its financial assets and liabilities designated as interest rate derivatives when offsetting is permitted. The following table presents the Corporation's financial instruments that are eligible for offset, and the effects of offsetting, on the consolidated balance sheets:
(1) For interest rate derivative assets, amounts represent any derivative liability fair values that could be offset in the event of counterparty or customer default. For interest rate derivative liabilities, amounts represent any derivative asset fair values that could be offset in the event of counterparty or customer default. (2) Amounts represent cash collateral received from the counterparty or posted by the Corporation on interest rate derivative transactions and foreign exchange contracts with financial institution counterparties. Interest rate derivatives with customers are collateralized by the same collateral securing the underlying loans to those borrowers. Cash and securities collateral amounts are included in the table only to the extent of the net derivative fair values.
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Accumulated Other Comprehensive (Loss) Income |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive (Loss) Income | Accumulated Other Comprehensive (Loss) Income The following table presents the components of other comprehensive income (loss):
(1) Amounts reclassified out of AOCI. Before-tax amounts included as a reduction to "Interest Income" on the Consolidated Statements of Income. (2) Amounts reclassified out of AOCI. Before-tax amounts included in "Salaries and employee benefits" on the Consolidated Statements of Income. See "Note 12 - Employee Benefit Plans," for additional details. (3) Amounts reclassified out of AOCI. Before-tax amounts included in "Investment securities gains, net" on the Consolidated Statements of Income. See "Note 4 - Investment Securities," for additional details. The following table presents changes in each component of accumulated other comprehensive income (loss), net of tax:
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements FASB ASC Topic 820 establishes a fair value hierarchy for the inputs to valuation techniques used to measure assets and liabilities at fair value using the following three categories (from highest to lowest priority): •Level 1 – Inputs that represent quoted prices for identical instruments in active markets. •Level 2 – Inputs that represent quoted prices for similar instruments in active markets or quoted prices for identical instruments in non-active markets. Also includes valuation techniques whose inputs are derived principally from observable market data other than quoted prices, such as interest rates or other market-corroborated means. •Level 3 – Inputs that are largely unobservable, as little or no market data exists for the instrument being valued. All assets and liabilities measured at fair value on both a recurring and nonrecurring basis have been categorized into the above three levels. The following tables present assets and liabilities measured at fair value on a recurring basis and reported on the consolidated balance sheets:
The valuation techniques used to measure fair value for the items in the preceding tables are as follows: Loans held for sale – This category includes mortgage loans held for sale that are measured at fair value. Fair values as of June 30, 2024 and December 31, 2023 were measured at the price that secondary market investors were offering for loans with similar characteristics. Available for sale investment securities – Included in this asset category are debt securities. Level 2 investment securities are valued by a third-party pricing service. The pricing service uses pricing models that vary based on asset class and incorporate available market information, including quoted prices of investment securities with similar characteristics. Because many fixed income securities do not trade on a daily basis, pricing models use available information, as applicable, through processes such as benchmark yield curves, benchmarking of like securities, sector groupings and matrix pricing. Standard market inputs include: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data, including market research publications. For certain security types, additional inputs may be used or some of the standard market inputs may not be applicable. •U.S. Government securities – These securities are classified as Level 1. Fair values are based on quoted prices with active markets. •U.S. Government-sponsored agency securities, State and municipal securities/Collateralized mortgage obligations/Residential mortgage-backed securities/Commercial mortgage-backed securities – These debt securities are classified as Level 2. Fair values are determined by a third-party pricing service, as detailed above. •Corporate debt securities – These securities are classified as Level 2. This category consists of subordinated debt and senior debt issued by financial institutions ($330.4 million at June 30, 2024 and $433.4 million at December 31, 2023) and other corporate debt issued by non-financial institutions ($6.9 million and $7.2 million at June 30, 2024 and December 31, 2023, respectively). The fair values for these corporate debt securities are determined by a third-party pricing service as detailed above. Investments held in Rabbi Trust – This category consists of mutual funds that are held in trust for employee deferred compensation plans that the Corporation has elected to measure at fair value. Shares of mutual funds are valued based on net asset value, which represent quoted market prices for the underlying shares held in the mutual funds, and as such, are classified as Level 1. Derivative assets – Fair value of foreign currency exchange contracts are classified as Level 1 assets ($0.8 million and $0.6 million at June 30, 2024 and December 31, 2023, respectively). The mutual funds and foreign exchange prices used to measure these items at fair value are based on quoted prices for identical instruments in active markets. Level 2 assets, representing the fair value of mortgage banking derivatives in the form of interest rate locks and forward commitments with secondary market investors ($1.0 million at June 30, 2024 and $0.5 million at December 31, 2023) and the fair value of interest rate derivatives ($174.8 million at June 30, 2024 and $157.1 million at December 31, 2023). The fair values of the interest rate locks, forward commitments and interest rate derivatives represent the amounts that would be required to settle the derivative financial instruments at the balance sheet date. See "Note 7 - Derivative Financial Instruments," for additional information. Deferred compensation liabilities – Fair value of amounts due to employees under deferred compensation plans, classified as Level 1 liabilities and are included in other liabilities on the consolidated balance sheets. The fair values of these liabilities are determined in the same manner as the related assets, as described under the heading "Investments held in Rabbi Trust" above. Derivative liabilities – Level 1 liabilities, representing the fair value of foreign currency exchange contracts ($0.5 million at June 30, 2024 and December 31, 2023). Level 2 liabilities, representing the fair value of mortgage banking derivatives in the form of interest rate locks and forward commitments with secondary market investors ($0.2 million at June 30, 2024 and $0.9 million at December 31, 2023) and the fair value of interest rate derivatives ($279.9 million at June 30, 2024 and $245.6 million at December 31, 2023). The fair values of these liabilities are determined in the same manner as the related assets as described under the heading "Derivative assets" above. Certain financial instruments are not measured at fair value on an ongoing basis but are subject to fair value measurement in certain circumstances, such as upon their acquisition or when there is evidence of impairment. The following table presents Level 3 financial assets measured at fair value on a nonrecurring basis:
(1) Amounts shown are estimated fair value. MSRs are recorded on the Corporation's consolidated balance sheets at the lower of amortized cost or fair value. See "Note 6 - Mortgage Servicing Rights" for additional information. The valuation techniques used to measure fair value for the items in the table above are as follows: •Loans, net – This category consists of loans that were individually evaluated for impairment and have been classified as Level 3 assets. The amount shown is the balance of non-accrual loans, net of related ACL. See "Note 5 - Loans and Allowance for Credit Losses," for additional details. •OREO – This category consists of OREO classified as Level 3 assets, for which the fair values were based on estimated selling prices less estimated selling costs for similar assets in active markets. •MSRs – This category consists of MSRs, which were initially recorded at fair value upon the sale of residential mortgage loans to secondary market investors, and subsequently carried at the lower of amortized cost or fair value. MSRs are amortized as a reduction to servicing income over the estimated lives of the underlying loans. MSRs are stratified by product type and evaluated for impairment by comparing each stratum's carrying amount to its estimated fair value. Fair values are determined at the end of each quarter through a discounted cash flows valuation performed by a third-party valuation expert. Significant inputs to the valuation included expected net servicing income, the discount rate and the expected life of the underlying loans. Expected life is based on the contractual terms of the loans as adjusted for prepayment projections. The weighted average annual constant prepayment rate and the weighted average discount rate used in the June 30, 2024 valuation were 7.3% and 9.5%, respectively. Management reviews the reasonableness of the significant inputs to the third-party valuation in comparison to market data. See "Note 6 - Mortgage Servicing Rights," for additional information. The following tables detail the book values and the estimated fair values of the Corporation's financial instruments:
Fair values of financial instruments are significantly affected by the assumptions used, principally the timing of future cash flows and discount rates. Because assumptions are inherently subjective in nature, the estimated fair values cannot be substantiated by comparison to independent market quotes and, in many cases, the estimated fair values could not necessarily be realized in an immediate sale or settlement of the instrument. The aggregate fair value amounts presented do not necessarily represent management’s estimate of the underlying value of the Corporation. For short-term financial instruments, defined as those with remaining maturities of 90 days or less, and excluding those recorded at fair value on the Corporation's consolidated balance sheets, book value was considered to be a reasonable estimate of fair value. The following instruments are predominantly short-term:
FRB and FHLB stock represent restricted investments and are carried at cost on the consolidated balance sheets, which is a reasonable estimate of fair value. As of June 30, 2024, fair values for loans and time deposits were estimated by discounting future cash flows using the current rates, as adjusted for liquidity considerations, at which similar loans would be made to borrowers and similar deposits would be issued to customers for the same remaining maturities. Fair values of loans also include estimated credit losses that would be assumed in a market transaction, which represents estimated exit prices. Brokered deposits consist of demand and saving deposits, which are classified as Level 1, and time deposits, which are classified as Level 2. The fair value of these deposits is determined in a manner consistent with the respective type of deposits discussed above.
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Net Income Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income Per Share | Net Income Per Share Basic net income per share is calculated as net income available to common shareholders divided by the weighted average number of shares outstanding. Diluted net income per share is calculated as net income available to common shareholders divided by the weighted average number of shares outstanding plus the incremental number of shares added as a result of converting common stock equivalents, calculated using the treasury stock method. The Corporation's common stock equivalents consist of outstanding stock options, restricted stock, RSUs, and PSUs. PSUs are required to be included in weighted average diluted shares outstanding if performance measures, as defined in each PSU award agreement, are met as of the end of the period. A reconciliation of weighted average shares outstanding used to calculate basic and diluted net income per share follows (in thousands, except per share data):
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Stock-Based Compensation |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation The Corporation grants equity awards to employees in the form of restricted stock, RSUs or PSUs under its Employee Equity Plan. In addition, employees may purchase stock under the Corporation's Employee Stock Purchase Plan. The fair value of equity awards granted to employees is recognized as compensation expense over the period during which employees are required to provide service in exchange for such awards. The Corporation also grants equity awards to non-employee members of its Board of Directors and the Bank's Board of Directors under the Directors’ Plan. Under the Directors’ Plan, the Corporation can grant equity awards to non-employee Corporation and Bank directors in the form of restricted stock, RSUs or common stock. Recent grants of equity awards under the Directors’ Plan have been limited to RSUs. As of June 30, 2024, the Employee Equity Plan had approximately 3.9 million shares reserved for future grants through 2032, and the Directors’ Plan had approximately 330,000 shares reserved for future grants through 2033. The following table presents compensation expense and the related tax benefits for equity awards recognized in the consolidated statements of income:
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefit Plans | Employee Benefit Plans The net periodic pension cost for the Pension Plan consisted of the following components:
The components of the net benefit for the Postretirement Plan consisted of the following components:
In connection with the Merger, the Corporation assumed the obligations of Prudential Bancorp under a multiemployer defined benefit pension plan that had previously been closed to new Prudential Bancorp participants. The Corporation recognizes the funded status of its Pension Plan and Postretirement Plan on the consolidated balance sheets and recognizes the change in that funded status through OCI.
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Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies Commitments The Corporation is a party to financial instruments with OBS risk in the normal course of business to meet the financing needs of its borrowers or obligors. Commitments to extend credit are agreements to lend to a borrower or obligor as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee by the borrower or obligor. Since a portion of the commitments is expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Corporation evaluates each borrower's or obligor's creditworthiness on a case-by-case basis. The amount of collateral, if any, obtained upon an extension of credit is based on management's credit evaluation of the borrower or obligor. Collateral held varies but may include accounts receivable, inventory, property, equipment and income-producing commercial properties. Standby letters of credit are conditional commitments issued to guarantee the financial or performance obligation of a borrower or obligor to a third party. Commercial letters of credit are conditional commitments issued to facilitate foreign and domestic trade transactions for borrowers or obligors. The credit risk involved in issuing letters of credit is similar to that involved in extending loan facilities. These obligations are underwritten consistent with commercial lending standards. The maximum exposure to loss for standby and commercial letters of credit is equal to the contractual (or notional) amount of the instruments. The following table presents the Corporation's commitments to extend credit and letters of credit:
Residential Lending The Corporation originates and sells residential mortgages to secondary market investors. The Corporation provides customary representations and warranties to secondary market investors that specify, among other things, that the loans have been underwritten to the standards of the secondary market investor. The Corporation may be required to repurchase specific loans or reimburse the investor for a credit loss incurred on a sold loan if it is determined that the representations and warranties have not been met. Under some agreements with secondary market investors, the Corporation may have additional credit exposure beyond customary representations and warranties, based on the specific terms of those agreements. The Corporation maintains a reserve for estimated losses related to loans sold to investors. As of June 30, 2024 and December 31, 2023, the total reserve for losses on residential mortgage loans sold was $2.5 million and $1.8 million, respectively, including reserves for both representation and warranty and credit loss exposures. In addition, a component of ACL - OBS credit exposures of $1.3 million and $2.7 million, as of June 30, 2024 and December 31, 2023, respectively, related to additional credit exposures for potential loan repurchases. Legal Proceedings The Corporation is involved in various pending and threatened claims and other legal proceedings in the ordinary course of its business activities. The Corporation evaluates the possible impact of these matters, taking into consideration the most recent information available. A loss reserve is established for those matters for which the Corporation believes a loss is both probable and reasonably estimable. Once established, the reserve is adjusted as appropriate to reflect any subsequent developments. Actual losses with respect to any such matter may be more or less than the amount estimated by the Corporation. For matters where a loss is not probable, or the amount of the loss cannot be reasonably estimated by the Corporation, no loss reserve is established. In addition, from time to time, the Corporation is involved in investigations or other forms of regulatory or governmental inquiry covering a range of possible issues and, in some cases, these may be part of similar reviews of the specified activities of other companies. These inquiries or investigations could lead to administrative, civil or criminal proceedings involving the Corporation, and could result in fines, penalties, restitution, other types of sanctions, or the need for the Corporation to undertake remedial actions, or to alter its business, financial or accounting practices. The Corporation's practice is to cooperate fully with regulatory and governmental inquiries and investigations. As of the date of this report, the Corporation believes that any liabilities, individually or in the aggregate, that may result from the final outcomes of pending legal proceedings, or regulatory or governmental inquiries or investigations, will not have a material adverse effect on the financial condition of the Corporation. However, legal proceedings, inquiries and investigations are often unpredictable, and it is possible that the ultimate resolution of any such matters, if unfavorable, may be material to the Corporation's results of operations in any future period, depending, in part, upon the size of the loss or liability imposed and the operating results for the period, and could have a material adverse effect on the Corporation's business. In addition, regardless of the ultimate outcome of any such legal proceeding, inquiry or investigation, any such matter could cause the Corporation to incur additional expenses, which could be significant, and possibly material, to the Corporation's results of operations in any future period.
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Subsequent Events |
6 Months Ended |
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Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events |
Pay vs Performance Disclosure - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
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Pay vs Performance Disclosure | ||||
Net Income | $ 94,975 | $ 79,607 | $ 156,916 | $ 147,920 |
Insider Trading Arrangements |
3 Months Ended |
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Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation (Policies) |
6 Months Ended |
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Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited Consolidated Financial Statements of the Corporation have been prepared in conformity with GAAP for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts of assets and liabilities as of the date of the financial statements as well as revenues and expenses during the period. Actual results could differ from those estimates. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and the notes thereto included in the Corporation's Annual Report on Form 10-K for the year ended December 31, 2023. Operating results for the three and six months ended June 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. The Corporation evaluates subsequent events through the date of filing of this Quarterly Report on Form 10-Q with the SEC for potential recognition or disclosure in the Consolidated Financial Statements. Significant Accounting Policies The significant accounting policies used in preparation of the Consolidated Financial Statements are disclosed in the Corporation's Annual Report on Form 10-K for the year ended December 31, 2023. Those significant accounting policies are unchanged at June 30, 2024.
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Recently Adopted and Issued Accounting Standards | Recently Adopted Accounting Standards In June 2022, FASB issued ASU 2022-03 Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions ("ASU 2022-03"). This update clarifies how the fair value of equity securities subject to contractual sale restrictions is determined and requires additional qualitative and quantitative disclosures for equity securities with contractual sale restrictions. The Corporation adopted ASU 2022-03 on January 1, 2024, and it did not have a material impact on its consolidated financial statements. In March 2023, FASB issued ASU 2023-01 Leases (Topic 842): Common Control Arrangements ("ASU 2023-01"). This update clarifies guidance for leases between related parties under common control. The Corporation adopted ASU 2023-01 on January 1, 2024, and it did not have a material impact on its consolidated financial statements. Recently Issued Accounting Standards In November 2023, FASB issued ASU 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ("ASU 2023-07"). This update requires public entities with reportable segments to provide additional and more detailed disclosures. The Corporation will adopt ASU 2023-07 on December 15, 2024. The Corporation is not currently required to report segment information and, as such, does not expect the adoption of ASU 2023-07 to have an impact on its consolidated financial statements. In December 2023, FASB issued ASU 2023-08 Intangibles - Goodwill and Other - Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets ("ASU 2023-08"). This update provides guidance for crypto assets to be carried at fair value and requires additional disclosures. The Corporation will adopt ASU 2023-08 on January 1, 2025. The Corporation does not expect the adoption of ASU 2023-08 to have an impact on its consolidated financial statements. The Corporation currently does not hold crypto assets. In December 2023, FASB issued ASU 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09"). This update requires companies to disclose specific categories in the income tax rate reconciliation and requires additional information for certain reconciling items. The Corporation will adopt ASU 2023-09 on January 1, 2025. The Corporation does not expect the adoption of ASU 2023-09 to have an impact on its consolidated financial statements. In March 2024, FASB issued ASU 2024-01 Compensation - Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards ("ASU 2024-01"). This update provides guidance for profits interest and similar awards. The Corporation will adopt ASU 2024-01 on January 1, 2025. The Corporation does not expect the adoption of ASU 2024-01 to have a material impact on its consolidated financial statements.
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Reclassifications | Reclassifications Certain amounts in the 2023 consolidated financial statements and notes have been reclassified to conform to the 2024 presentation.
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Business Combinations and Asset Acquisitions (Tables) |
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Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Acquisitions | The following table summarizes the consideration transferred and the estimated fair values of identifiable assets acquired and liabilities assumed in connection with the Republic First Transaction on the Acquisition Date:
The following table presents information with respect to the estimated fair value and unpaid principal balance of acquired loans and leases at the Acquisition Date:
The following table summarizes PCD Loans:
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Schedule of Acquisition-Related Expenses | The following table details the costs identified and classified as acquisition-related expenses:
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Investment Securities (Tables) |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Amortized Cost and Fair Values of Investment Securities | The following table presents the amortized cost and estimated fair values of investment securities:
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Schedule of Amortized Cost and Fair Values of Debt Securities by Contractual Maturities | The amortized cost and estimated fair values of debt securities as of June 30, 2024, by contractual maturity, are shown in the following table. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay with or without call or prepayment penalties.
(1) Maturities for mortgage-backed securities and collateralized mortgage obligations are dependent upon the interest rate environment and prepayments on the underlying loans.
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Summary of Gains and Losses from Equity and Debt Securities, and Losses Recognized from Other-than-Temporary Impairment | The following table presents information related to gross realized gains and losses on the sales of securities:
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Gross Unrealized Losses and Fair Values of Investments by Category and Length of Time in Continuous Unrealized Loss Position | The following tables present the gross unrealized losses and estimated fair values of investment securities aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position:
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Loans and Allowance for Credit Losses (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Gross Loans by Type | Loans and leases, net of unearned income, are summarized as follows:
(1) Includes no unearned income at June 30, 2024 and $41.0 thousand at December 31, 2023. (2) Includes unearned income of $36.6 million at June 30, 2024 and $38.0 million at December 31, 2023.
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Schedule of Allowance for Credit Losses | The following table summarizes the ACL - loans balance and the reserve for OBS credit exposures balance:
(1) Included in other liabilities on the consolidated balance sheets.
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Activity in the Allowance for Credit Losses | The following table presents the activity in the ACL - loans balances:
(1) The sum of these amounts are reflected in the provision for credit losses in the Consolidated Statements of Income. (2) Provision only includes the portion related to net loans. The following table presents the activity in the ACL by portfolio segment:
(1) These amounts are reflected in the provision for credit loss in the Consolidated Statements of Income. (2) Provision included in the table only includes the portion related to net loans.
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Total Impaired Loans by Class Segment | The following table presents total non-accrual loans, by class segment:
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Financing Receivable Credit Quality Indicators | The following table summarizes designated internal risk rating categories by portfolio segment and loan class, by origination year, in the current period:
(1) Excludes real estate - construction - other. The increase of $799.0 million in special mention loans as of June 30, 2024 was primarily due to loans acquired in the Republic First Transaction with a balance of $776.9 million as of June 30, 2024. The increase of $277.8 million in substandard or lower loans as of June 30, 2024 was primarily due to loans acquired in the Republic First Transaction with a balance of $166.5 million as of June 30, 2024. The following table summarizes designated internal risk rating categories by portfolio segment and loan class, by origination year, in the prior period:
(1) Excludes real estate - construction - other. The following tables present the amortized cost of these loans based on payment activity, by origination year, for the periods shown:
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Non-Performing Assets | The following table presents non-performing assets:
(1) Excludes $24.2 million and $10.9 million of residential mortgage properties for which formal foreclosure proceedings were in process as of June 30, 2024 and December 31, 2023, respectively.
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Past due Loan Status and Non-Accrual Loans by Portfolio Segment | The following tables present the aging of the amortized cost basis of loans, by class segment:
(1) Includes unearned income.
(1) Includes unearned income.
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Financing Receivables, Loan Modifications | The following table presents the amortized cost basis of the loans modified to borrowers experiencing financial difficulty, disaggregated by class of financing receivable and type of concession granted:
The following table presents the financial effect of the modifications made to borrowers experiencing financial difficulty:
(1) There were no loan modifications with interest rate reductions for the three months and six months ended June 30, 2023. The following table presents the performance of loans that have been modified due to financial difficulty in the previous 12 months:
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Mortgage Servicing Rights (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Transfers and Servicing [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Changes in Mortgage Servicing Rights | The following table summarizes the changes in MSRs, which are included in other assets on the consolidated balance sheets, with adjustments to the carrying value included in mortgage banking income on the consolidated statements of income:
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Leases (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Lease Expense | he following table presents the components of lease expense, which is included in net occupancy expense on the consolidated statements of income:
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Schedule of Supplemental Lease Information | Supplemental consolidated balance sheet information related to leases was as follows:
Supplemental cash flow information related to operating leases was as follows:
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Schedule of Lease Payment Obligations For Each of the Next Five Years |
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Derivative Financial Instruments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Notional Amounts and Fair Values of Derivative Financial Instruments | The following table presents a summary of the notional amounts and fair values of derivative financial instruments:
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Summary of Effect of Fair Value and Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income | The following table presents the effect of cash flow hedge accounting on AOCI:
During the next twelve months, the Corporation estimates that an additional $15.9 million of unrecognized losses will be reclassified as a decrease to net interest income. The following table presents the effect of fair value and cash flow hedge accounting on the income statement:
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Summary of Fair Value Gains and Losses on Derivative Financial Instruments | The following table presents a summary of the net fair value gains (losses) on derivative financial instruments:
(1) Includes interest rate locks with customers and forward commitments.
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Summary of Corporation's Mortgage Loans Held for Sale | The following table presents a summary of mortgage loans held for sale and the impact of the fair value election on the consolidated financial statements:
(1) Cost basis of mortgage loans held for sale represents the unpaid principal balance.
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Summary of Offsetting Derivative Assets | The following table presents the Corporation's financial instruments that are eligible for offset, and the effects of offsetting, on the consolidated balance sheets:
(1) For interest rate derivative assets, amounts represent any derivative liability fair values that could be offset in the event of counterparty or customer default. For interest rate derivative liabilities, amounts represent any derivative asset fair values that could be offset in the event of counterparty or customer default. (2) Amounts represent cash collateral received from the counterparty or posted by the Corporation on interest rate derivative transactions and foreign exchange contracts with financial institution counterparties. Interest rate derivatives with customers are collateralized by the same collateral securing the underlying loans to those borrowers. Cash and securities collateral amounts are included in the table only to the extent of the net derivative fair values.
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Summary of Offsetting Derivative Liabilities | The following table presents the Corporation's financial instruments that are eligible for offset, and the effects of offsetting, on the consolidated balance sheets:
(1) For interest rate derivative assets, amounts represent any derivative liability fair values that could be offset in the event of counterparty or customer default. For interest rate derivative liabilities, amounts represent any derivative asset fair values that could be offset in the event of counterparty or customer default. (2) Amounts represent cash collateral received from the counterparty or posted by the Corporation on interest rate derivative transactions and foreign exchange contracts with financial institution counterparties. Interest rate derivatives with customers are collateralized by the same collateral securing the underlying loans to those borrowers. Cash and securities collateral amounts are included in the table only to the extent of the net derivative fair values.
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Accumulated Other Comprehensive (Loss) Income (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in other comprehensive income (loss) | The following table presents the components of other comprehensive income (loss):
(1) Amounts reclassified out of AOCI. Before-tax amounts included as a reduction to "Interest Income" on the Consolidated Statements of Income. (2) Amounts reclassified out of AOCI. Before-tax amounts included in "Salaries and employee benefits" on the Consolidated Statements of Income. See "Note 12 - Employee Benefit Plans," for additional details. (3) Amounts reclassified out of AOCI. Before-tax amounts included in "Investment securities gains, net" on the Consolidated Statements of Income. See "Note 4 - Investment Securities," for additional details.
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Changes in each component of accumulated other comprehensive income (loss) | The following table presents changes in each component of accumulated other comprehensive income (loss), net of tax:
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Fair Value Measurements (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables present assets and liabilities measured at fair value on a recurring basis and reported on the consolidated balance sheets:
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Fair Value, Assets and Liabilities Measured on Nonrecurring Basis | The following table presents Level 3 financial assets measured at fair value on a nonrecurring basis:
(1) Amounts shown are estimated fair value. MSRs are recorded on the Corporation's consolidated balance sheets at the lower of amortized cost or fair value. See "Note 6 - Mortgage Servicing Rights" for additional information.
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Details of Book Value and Fair Value of Financial Instruments | The following tables detail the book values and the estimated fair values of the Corporation's financial instruments:
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Net Income Per Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Weighted Average Common Shares Outstanding | A reconciliation of weighted average shares outstanding used to calculate basic and diluted net income per share follows (in thousands, except per share data):
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Stock-Based Compensation (Tables) |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Compensation Expense and Related Tax Benefits | The following table presents compensation expense and the related tax benefits for equity awards recognized in the consolidated statements of income:
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Employee Benefit Plans (Tables) |
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Defined Benefit Plans Disclosures | The net periodic pension cost for the Pension Plan consisted of the following components:
The components of the net benefit for the Postretirement Plan consisted of the following components:
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Commitments and Contingencies (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Outstanding Commitments to Extend Credit and Letters of Credit | The following table presents the Corporation's commitments to extend credit and letters of credit:
|
Business Combinations - Carrying Amount of Loans on Acquisition Date (Details) - Republic First Bank $ in Thousands |
Apr. 26, 2024
USD ($)
|
---|---|
Business Acquisition [Line Items] | |
Book balance of loans with deteriorated credit quality at acquisition | $ 1,023,940 |
Fair value of loans with deteriorated credit quality at acquisition | (904,558) |
Fair value discount | 119,382 |
PCD Loans credit discount | (55,906) |
Non-credit discount | $ 63,476 |
Business Combinations - Schedule of Acquisition-Related Expenses (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Business Acquisition [Line Items] | ||||
Acquisition-related expenses | $ 13,803 | $ 0 | $ 13,803 | $ 0 |
Republic First Bank | ||||
Business Acquisition [Line Items] | ||||
Salaries and employee benefits | 805 | |||
Professional fees | 7,624 | |||
Charitable donation | 5,000 | |||
Other | 374 | |||
Acquisition-related expenses | $ 13,803 |
Business Combinations - Income Statement (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Income Before Income Taxes | $ 103,170 | $ 95,672 | $ 178,722 | $ 178,851 |
Income taxes | $ 8,195 | $ 16,065 | $ 21,806 | $ 30,931 |
Restrictions on Cash and Cash Equivalents (Details) - USD ($) $ in Millions |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Cash and Cash Equivalents [Abstract] | ||
Collateral | $ 10.9 | $ 17.4 |
Investment Securities Summary of Gains and Losses from Equity and Debt Securities, and Losses from Other-than-Temporary Impairment (Details) - USD ($) $ in Thousands |
1 Months Ended | 3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|---|
May 31, 2024 |
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Investments, Debt and Equity Securities [Abstract] | |||||
Debt securities, Gross Realized Gains | $ 91 | $ 0 | $ 91 | $ 283 | |
Debt securities, realized loss | $ (20,300) | (20,373) | (4) | (20,373) | (264) |
Debt securities, Net Gains (Losses) | $ (20,282) | $ (4) | $ (20,282) | $ 19 |
Investment Securities Narrative (Details) - USD ($) $ in Thousands |
1 Months Ended | 3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|---|
May 31, 2024 |
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
Dec. 31, 2023 |
|
Schedule of Investments [Line Items] | ||||||
Debt Securities, Held-to-Maturity, Fair Value | $ 1,033,439 | $ 1,033,439 | $ 1,072,207 | |||
Proceeds from sales of AFS securities | $ 345,700 | 2,261,028 | $ 80,666 | |||
Debt securities, realized loss | $ 20,300 | 20,373 | $ 4 | 20,373 | $ 264 | |
Collateral Pledged [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Securities pledged as collateral | $ 1,200,000 | $ 1,200,000 | $ 400,000 |
Loans and Allowance for Credit Losses Allowance for Credit Losses (Details) - USD ($) |
3 Months Ended | 6 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
Apr. 26, 2024 |
Mar. 31, 2024 |
Dec. 31, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
|
Receivables [Abstract] | |||||||||
ACL - loans | $ 375,941,000 | $ 375,941,000 | $ 293,404,000 | ||||||
Reserve for OBS credit exposures(1) | 14,540,000 | 14,540,000 | 17,254,000 | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||
Loans and Leases Receivable, Allowance | 375,941,000 | $ 287,442,000 | 375,941,000 | $ 287,442,000 | $ 297,888,000 | $ 293,404,000 | $ 278,695,000 | $ 269,366,000 | |
Provision for credit losses | 32,056,000 | 9,747,000 | 42,981,000 | 34,291,000 | |||||
Current period gross charge-offs | (14,007,000) | (4,787,000) | (24,959,000) | (21,690,000) | |||||
Recoveries of loans previously charged off | 2,705,000 | 2,816,000 | 5,059,000 | 5,715,000 | |||||
Net loans (charged off) recovered | (11,302,000) | (1,971,000) | (19,900,000) | (15,975,000) | |||||
Provision for credit losses | 10,005,000 | 10,718,000 | 23,087,000 | 34,051,000 | |||||
Off-Balance-Sheet, Credit Loss, Liability, Credit Loss Expense (Reversal) | (1,393,000) | (971,000) | (3,550,000) | 240,000 | |||||
Off-Balance-Sheet, Credit Loss, Liability | 14,540,000 | 16,568,000 | 14,540,000 | 16,568,000 | |||||
Republic First Bank | |||||||||
Receivables [Abstract] | |||||||||
ACL - loans | $ 79,400,000 | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||
Provision for Other Credit Losses | 23,444,000 | 0 | 23,444,000 | 0 | |||||
Financing Receivable, Allowance for Credit Loss, Purchased with Credit Deterioration, Increase | $ 55,906,000 | $ 0 | $ 55,906,000 | $ 0 |
Loans and Allowance for Credit Losses Activity in the Allowance for Credit Losses (Details) - USD ($) |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
Dec. 31, 2023 |
|
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | $ 297,888,000 | $ 278,695,000 | $ 293,404,000 | $ 269,366,000 | $ 269,366,000 |
Loans charged off | (14,007,000) | (4,787,000) | (24,959,000) | (21,690,000) | |
Recoveries of loans previously charged off | 2,705,000 | 2,816,000 | 5,059,000 | 5,715,000 | |
Net loans (charged off) recovered | (11,302,000) | (1,971,000) | (19,900,000) | (15,975,000) | |
Provision for credit losses | 10,005,000 | 10,718,000 | 23,087,000 | 34,051,000 | |
Ending balance | 375,941,000 | 287,442,000 | 375,941,000 | 287,442,000 | $ 293,404,000 |
Off-Balance-Sheet, Credit Loss, Liability, Credit Loss Expense (Reversal) | (1,393,000) | (971,000) | (3,550,000) | 240,000 | |
Off-Balance-Sheet, Credit Loss, Liability | 14,540,000 | 16,568,000 | 14,540,000 | 16,568,000 | |
Loans - Excluding OBS Credit Exposure | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
PCD Loans credit discount | 55,906,000 | 55,906,000 | |||
Loans charged off | (14,007,000) | (4,787,000) | (24,959,000) | (21,690,000) | |
Recoveries of loans previously charged off | 2,705,000 | 2,816,000 | 5,059,000 | 5,715,000 | |
Net loans (charged off) recovered | (11,302,000) | (1,971,000) | (19,900,000) | (15,975,000) | |
Provision for credit losses | 10,005,000 | 10,718,000 | 23,087,000 | 34,051,000 | |
Real estate - commercial mortgage | Loans - Excluding OBS Credit Exposure | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
PCD Loans credit discount | 32,157,000 | 32,157,000 | |||
Loans charged off | (7,853,000) | (230,000) | (7,879,000) | (13,592,000) | |
Recoveries of loans previously charged off | 146,000 | 29,000 | 298,000 | 815,000 | |
Net loans (charged off) recovered | (7,707,000) | (201,000) | (7,581,000) | (12,777,000) | |
Provision for credit losses | $ 11,115,000 | $ 6,247,000 | $ 12,916,000 | $ 15,623,000 |
Loans and Allowance for Credit Losses Allowance for Loan Losses by Portfolio Segment (Details) - USD ($) |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
Dec. 31, 2023 |
|
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | $ 293,404,000 | ||||
Loans charged off | $ (14,007,000) | $ (4,787,000) | (24,959,000) | $ (21,690,000) | |
Recoveries of loans previously charged off | 2,705,000 | 2,816,000 | 5,059,000 | 5,715,000 | |
Net loans (charged off) recovered | (11,302,000) | (1,971,000) | (19,900,000) | (15,975,000) | |
Provision for credit losses | 10,005,000 | 10,718,000 | 23,087,000 | 34,051,000 | |
Ending balance | 375,941,000 | 375,941,000 | $ 293,404,000 | ||
Loans - Excluding OBS Credit Exposure | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | 297,888,000 | 278,695,000 | 293,404,000 | 269,366,000 | 269,366,000 |
CECL Day 1 Provision(1) | 23,444,000 | 23,444,000 | |||
PCD Loans credit discount | 55,906,000 | 55,906,000 | |||
Loans charged off | (14,007,000) | (4,787,000) | (24,959,000) | (21,690,000) | |
Recoveries of loans previously charged off | 2,705,000 | 2,816,000 | 5,059,000 | 5,715,000 | |
Net loans (charged off) recovered | (11,302,000) | (1,971,000) | (19,900,000) | (15,975,000) | |
Provision for credit losses | 10,005,000 | 10,718,000 | 23,087,000 | 34,051,000 | |
Ending balance | 375,941,000 | 287,442,000 | 375,941,000 | 287,442,000 | 293,404,000 |
Loans - Excluding OBS Credit Exposure | Real estate - commercial mortgage | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | 114,492,000 | 66,256,000 | 112,565,000 | 69,456,000 | 69,456,000 |
CECL Day 1 Provision(1) | 6,108,000 | 6,108,000 | |||
PCD Loans credit discount | 32,157,000 | 32,157,000 | |||
Loans charged off | (7,853,000) | (230,000) | (7,879,000) | (13,592,000) | |
Recoveries of loans previously charged off | 146,000 | 29,000 | 298,000 | 815,000 | |
Net loans (charged off) recovered | (7,707,000) | (201,000) | (7,581,000) | (12,777,000) | |
Provision for credit losses | 11,115,000 | 6,247,000 | 12,916,000 | 15,623,000 | |
Ending balance | 156,165,000 | 72,302,000 | 156,165,000 | 72,302,000 | 112,565,000 |
Loans - Excluding OBS Credit Exposure | Commercial and Industrial | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | 76,883,000 | 77,126,000 | 74,266,000 | 70,116,000 | 70,116,000 |
CECL Day 1 Provision(1) | 1,484,000 | 1,484,000 | |||
PCD Loans credit discount | 20,869,000 | 20,869,000 | |||
Loans charged off | (2,955,000) | (2,017,000) | (10,587,000) | (2,629,000) | |
Recoveries of loans previously charged off | 796,000 | 988,000 | 2,044,000 | 2,074,000 | |
Net loans (charged off) recovered | (2,159,000) | (1,029,000) | (8,543,000) | (555,000) | |
Provision for credit losses | (2,454,000) | (908,000) | 6,547,000 | 5,628,000 | |
Ending balance | 94,623,000 | 75,189,000 | 94,623,000 | 75,189,000 | 74,266,000 |
Loans - Excluding OBS Credit Exposure | Real estate - residential mortgage | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | 73,216,000 | 86,209,000 | 73,286,000 | 83,250,000 | 83,250,000 |
CECL Day 1 Provision(1) | 14,922,000 | 14,922,000 | |||
PCD Loans credit discount | 565,000 | 565,000 | |||
Loans charged off | (35,000) | (62,000) | (286,000) | (62,000) | |
Recoveries of loans previously charged off | 122,000 | 58,000 | 238,000 | 106,000 | |
Net loans (charged off) recovered | 87,000 | (4,000) | (48,000) | 44,000 | |
Provision for credit losses | 924,000 | 2,644,000 | 989,000 | 5,555,000 | |
Ending balance | 89,714,000 | 88,849,000 | 89,714,000 | 88,849,000 | 73,286,000 |
Loans - Excluding OBS Credit Exposure | Consumer and Home Equity | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | 16,688,000 | 27,303,000 | 17,604,000 | 26,429,000 | 26,429,000 |
CECL Day 1 Provision(1) | 444,000 | 444,000 | |||
PCD Loans credit discount | 357,000 | 357,000 | |||
Loans charged off | (1,766,000) | (1,313,000) | (4,004,000) | (3,519,000) | |
Recoveries of loans previously charged off | 1,161,000 | 959,000 | 1,837,000 | 1,620,000 | |
Net loans (charged off) recovered | (605,000) | (354,000) | (2,167,000) | (1,899,000) | |
Provision for credit losses | 649,000 | 2,033,000 | 1,295,000 | 4,452,000 | |
Ending balance | 17,533,000 | 28,982,000 | 17,533,000 | 28,982,000 | 17,604,000 |
Loans - Excluding OBS Credit Exposure | Real-estate - construction | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | 12,966,000 | 11,646,000 | 12,295,000 | 10,743,000 | 10,743,000 |
CECL Day 1 Provision(1) | 486,000 | 486,000 | |||
PCD Loans credit discount | 1,958,000 | 1,958,000 | |||
Loans charged off | 0 | 0 | 0 | 0 | |
Recoveries of loans previously charged off | 233,000 | 569,000 | 233,000 | 771,000 | |
Net loans (charged off) recovered | 233,000 | 569,000 | 233,000 | 771,000 | |
Provision for credit losses | (1,033,000) | (1,071,000) | (362,000) | (370,000) | |
Ending balance | 14,610,000 | 11,144,000 | 14,610,000 | 11,144,000 | 12,295,000 |
Loans - Excluding OBS Credit Exposure | Leases and other loans | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | 3,643,000 | 10,155,000 | 3,388,000 | 9,372,000 | 9,372,000 |
CECL Day 1 Provision(1) | 0 | 0 | |||
PCD Loans credit discount | 0 | 0 | |||
Loans charged off | (1,398,000) | (1,165,000) | (2,203,000) | (1,888,000) | |
Recoveries of loans previously charged off | 247,000 | 213,000 | 409,000 | 329,000 | |
Net loans (charged off) recovered | (1,151,000) | (952,000) | (1,794,000) | (1,559,000) | |
Provision for credit losses | 804,000 | 1,773,000 | 1,702,000 | 3,163,000 | |
Ending balance | $ 3,296,000 | $ 10,976,000 | $ 3,296,000 | $ 10,976,000 | $ 3,388,000 |
Loans and Allowance for Credit Losses Non-Performing Assets (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans and leases | $ 145,630 | $ 121,620 |
Loans and leases 90 days or more past due and still accruing | 26,962 | 31,721 |
Total non-performing loans and leases | 172,592 | 153,341 |
Other real estate owned (OREO) | 1,444 | 896 |
Total non-performing assets | 174,036 | 154,237 |
Total | 24,106,297 | 21,351,094 |
Mortgage Loans in Process of Foreclosure, Amount | 24,200 | 10,900 |
Financial Asset, Equal to or Greater than 90 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 26,962 | $ 31,721 |
Mortgage Servicing Rights Summary of Changes in Mortgage Servicing Rights (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
Dec. 31, 2023 |
|
Servicing Asset [Abstract] | |||||
Fair value of MSRs | $ 51,700 | $ 51,700 | $ 49,700 | ||
Residential Mortgage | |||||
Amortized Cost: | |||||
Balance at beginning of period | 31,057 | $ 33,082 | 31,602 | $ 34,217 | |
Originations of MSRs | 883 | 688 | 1,465 | 884 | |
Amortization | (1,294) | (1,312) | (2,421) | (2,643) | |
Balance at end of period | 30,646 | 32,458 | 30,646 | 32,458 | |
Servicing Asset [Abstract] | |||||
Balance at end of period | 0 | 0 | |||
Fair value of MSRs | $ 51,724 | $ 49,444 | $ 51,724 | $ 49,444 |
Mortgage Servicing Rights - Narrative (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
Jun. 30, 2023 |
---|---|---|---|
Servicing Asset at Amortized Cost [Line Items] | |||
Mortgage Loans Serviced By For Third Parties | $ 4,000,000 | $ 4,100,000 | |
Fair value of MSRs | 51,700 | $ 49,700 | |
Residential Mortgage | |||
Servicing Asset at Amortized Cost [Line Items] | |||
Fair value of MSRs | 51,724 | $ 49,444 | |
Valuation Allowance for Impairment of Recognized Servicing Assets, Balance | $ 0 |
Leases - Narrative (Details) $ in Thousands |
6 Months Ended | ||
---|---|---|---|
May 10, 2024
USD ($)
financial_center
|
Jun. 30, 2024
USD ($)
|
Jun. 30, 2023
USD ($)
|
|
Leases [Abstract] | |||
Sale leaseback transaction, number of financial locations | financial_center | 40 | ||
Sale leaseback transaction, purchase price | $ 55,400 | ||
Term of contract | 15 years | ||
Aggregate base rental amount | $ 4,400 | ||
Annual base rate, percentage increase | 2.25% | ||
Gain on Sale-Leaseback Transaction | $ 20,300 | $ 20,266 | $ 0 |
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
Dec. 31, 2023 |
|
Leases [Abstract] | |||||
Operating lease expense | $ 7,633 | $ 4,751 | $ 12,697 | $ 9,592 | |
Variable Lease, Cost | 716 | 773 | 1,480 | 1,557 | |
Sublease income | (300) | (292) | (583) | (540) | |
Total lease expense | 8,049 | 5,232 | 13,594 | 10,609 | |
ROU assets | 131,796 | 131,796 | $ 88,188 | ||
Present value of lease liabilities | $ 138,389 | $ 138,389 | $ 95,230 | ||
Weighted average remaining lease term | 9 years 2 months 23 days | 9 years 2 months 23 days | 6 years 5 months 23 days | ||
Weighted average discount rate | 5.14% | 5.14% | 3.34% | ||
Cash paid for amounts included in the measurement of lease liabilities | $ 5,662 | 4,844 | $ 11,272 | 9,770 | |
ROU assets obtained in exchange for lease obligations | $ 47,446 | $ 0 | $ 52,993 | $ 9,018 |
Leases - Supplemental Lease Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
Dec. 31, 2023 |
|
Leases [Abstract] | |||||
ROU assets | $ 131,796 | $ 131,796 | $ 88,188 | ||
Present value of lease liabilities | $ 138,389 | $ 138,389 | $ 95,230 | ||
Weighted average remaining lease term | 9 years 2 months 23 days | 9 years 2 months 23 days | 6 years 5 months 23 days | ||
Weighted average discount rate | 5.14% | 5.14% | 3.34% | ||
Cash paid for amounts included in the measurement of lease liabilities | $ 5,662 | $ 4,844 | $ 11,272 | $ 9,770 | |
ROU assets obtained in exchange for lease obligations | $ 47,446 | $ 0 | $ 52,993 | $ 9,018 |
Leases - Future Payment Obligation (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Leases [Abstract] | ||
Remaining in 2024 | $ 12,616 | |
2025 | 23,741 | |
2026 | 22,122 | |
2027 | 19,830 | |
2028 | 16,622 | |
Thereafter | 79,672 | |
Total lease payments | 174,603 | |
Less: imputed interest | (36,214) | |
Present value of lease liabilities | $ 138,389 | $ 95,230 |
Derivative Financial Instruments Narrative (Details) - USD ($) |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jan. 31, 2023 |
Jun. 30, 2024 |
Mar. 31, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
|
Derivative [Line Items] | |||||
LIBOR to SOFR transition expenses | $ 1,900,000 | $ 300,000 | |||
Interest Rate Contract | |||||
Derivative [Line Items] | |||||
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net | $ 15,900,000 | 15,900,000 | |||
Interest Rate Contract, Terminated | |||||
Derivative [Line Items] | |||||
Unrealized Gain (Loss) on Cash Flow Hedging Instruments | $ 70,600,000 | ||||
Cash flow hedge gain (loss) reclassified to earnings, net | $ (14,100,000) | ||||
Interest Rate Contract, Terminated | Cash Flow Hedging | |||||
Derivative [Line Items] | |||||
Derivative, notional amount | $ 1,000,000,000 | ||||
Mortgage Loans Held For Sale | |||||
Derivative [Line Items] | |||||
Gain (loss) in fair values of mortgage loans held for sale | $ 300,000 | $ 0 |
Derivative Financial Instruments Fair Value Gains and Losses on Derivative Financial Instruments (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Derivative [Line Items] | ||||
Net fair value gains (losses) on derivative financial instruments | $ 176 | $ 568 | $ 1,533 | $ 1,053 |
Mortgage Banking Derivatives [Member] | ||||
Derivative [Line Items] | ||||
Net fair value gains (losses) on derivative financial instruments | (45) | 475 | 1,122 | 869 |
Interest Rate Swap [Member] | ||||
Derivative [Line Items] | ||||
Net fair value gains (losses) on derivative financial instruments | 137 | 0 | 288 | 0 |
Foreign Exchange Contract [Member] | ||||
Derivative [Line Items] | ||||
Net fair value gains (losses) on derivative financial instruments | $ 84 | $ 93 | $ 123 | $ 184 |
Derivative Financial Instruments Summary of Mortgage Loans Held For Sale (Details) - USD ($) |
3 Months Ended | ||
---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Dec. 31, 2023 |
|
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Loans held for sale | $ 26,822,000 | $ 15,158,000 | |
Mortgage Loans Held For Sale | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair Value, Option, Changes in Fair Value, Gain (Loss) | 300,000 | $ 0 | |
Cost [Member] | Mortgage Loans Held For Sale | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Loans held for sale | 26,335,000 | 14,792,000 | |
Fair value [Member] | Mortgage Loans Held For Sale | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Loans held for sale | $ 26,822,000 | $ 15,158,000 |
Fair Value Measurements Assets Measured at Fair Value on a Nonrecurring Basis (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
OREO | $ 1,444 | $ 896 |
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net loans | 121,942 | 102,135 |
OREO | 1,444 | 896 |
MSRs(1) | 51,724 | 49,696 |
Assets, Fair Value Disclosure | $ 175,110 | $ 152,727 |
Net Income Per Share Reconciliation of Weighted Average Common Shares Outstanding (Details) - $ / shares shares in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ||||
Weighted average shares outstanding (basic) (in shares) | 175,305 | 165,854 | 169,006 | 166,227 |
Impact of common stock equivalents (in shares) | 1,629 | 1,337 | 1,763 | 1,582 |
Weighted average shares outstanding (diluted) (in shares) | 176,934 | 167,191 | 170,769 | 167,809 |
Basic (in dollars per share) | $ 0.53 | $ 0.46 | $ 0.90 | $ 0.86 |
Diluted (in dollars per share) | $ 0.52 | $ 0.46 | $ 0.89 | $ 0.85 |
Stock-Based Compensation Narrative (Details) - Directors' Plan [Member] |
Jun. 30, 2024
shares
|
---|---|
Statement [Line Items] | |
Number of equity awards that may be awarded (in shares) | 3,900,000 |
Shares reserved for future grants under the stock option and compensation plan | 330,000 |
Stock-Based Compensation Compensation Expense and Related Tax Benefits (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Share-Based Payment Arrangement [Abstract] | ||||
Compensation expense | $ 2,758 | $ 2,571 | $ 3,425 | $ 4,240 |
Tax benefit | (620) | (565) | (764) | (927) |
Total stock-based compensation, net of tax | $ 2,138 | $ 2,006 | $ 2,661 | $ 3,313 |
Employee Benefit Plans Summary of Pension Plan and Postretirement Plan Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | $ 789 | $ 855 | $ 1,579 | $ 1,711 |
Expected return on plan assets | (975) | (877) | (1,951) | (1,754) |
Net amortization and deferral | 0 | 80 | 0 | 161 |
Net periodic benefit | (186) | 58 | (372) | 118 |
Other Postretirement Benefits Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | 9 | 13 | 19 | 26 |
Net accretion and deferral | (136) | (136) | (271) | (272) |
Net periodic benefit | $ (127) | $ (123) | $ (252) | $ (246) |
Commitments and Contingencies Outstanding Commitments to Extend Credit and Letters of Credit (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Valuation allowances and reserves, balance | $ 1,300 | $ 2,700 |
Commitments to Extend Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Valuation allowances and reserves, balance | 9,100,013 | 8,790,511 |
Standby Letters of Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Valuation allowances and reserves, balance | 254,067 | 264,440 |
Commercial Letters of Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Valuation allowances and reserves, balance | $ 64,605 | $ 67,396 |
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Loss Contingencies [Line Items] | ||
Valuation allowances and reserves, balance | $ 1.3 | $ 2.7 |
Residential Mortgage | ||
Loss Contingencies [Line Items] | ||
Valuation allowances and reserves, balance | $ 2.5 | $ 1.8 |
Subsequent Events (Details) - Subsequent Event - Financial Center Office Closures $ in Millions |
Jul. 16, 2024
USD ($)
financial_center
|
---|---|
Subsequent Event [Line Items] | |
Number of financial center office closures | financial_center | 13 |
Restructuring and related cost, expected cost | $ 10 |
Expected quarterly cost reduction | 8 |
Premises and Equipment Write-Offs | |
Subsequent Event [Line Items] | |
Restructuring and related cost, expected cost | 6 |
Lease Termination Charges | |
Subsequent Event [Line Items] | |
Restructuring and related cost, expected cost | 3 |
Employee Severance | |
Subsequent Event [Line Items] | |
Restructuring and related cost, expected cost | $ 1 |
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