Delaware | 56-1528994 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
4300 Six Forks Road, Raleigh, North Carolina | 27609 |
(Address of principle executive offices) | (Zip code) |
Large accelerated filer | x | Accelerated filer | ¨ | |
Non-accelerated filer | ¨ | Smaller reporting company | ¨ | |
Emerging growth company | ¨ |
Page No. | ||
PART I. | FINANCIAL INFORMATION | |
Item 1. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
PART II. | OTHER INFORMATION | |
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 6. |
Item 1. | Financial Statements |
(Dollars in thousands, unaudited) | March 31, 2017 | December 31, 2016 | |||||
Assets | |||||||
Cash and due from banks | $ | 502,273 | $ | 539,741 | |||
Overnight investments | 2,736,514 | 1,872,594 | |||||
Investment securities available for sale | 7,119,861 | 7,006,580 | |||||
Investment securities held to maturity | 83 | 98 | |||||
Loans held for sale | 49,952 | 74,401 | |||||
Loans and leases | 21,906,449 | 21,737,878 | |||||
Allowance for loan and lease losses | (220,943 | ) | (218,795 | ) | |||
Net loans and leases | 21,685,506 | 21,519,083 | |||||
Premises and equipment | 1,123,838 | 1,133,044 | |||||
Other real estate owned | 56,491 | 61,231 | |||||
Income earned not collected | 80,456 | 79,839 | |||||
FDIC shared-loss receivable | 3,981 | 4,172 | |||||
Goodwill | 150,601 | 150,601 | |||||
Other intangible assets | 75,325 | 78,040 | |||||
Other assets | 433,524 | 471,412 | |||||
Total assets | $ | 34,018,405 | $ | 32,990,836 | |||
Liabilities | |||||||
Deposits: | |||||||
Noninterest-bearing | $ | 10,797,613 | $ | 10,130,549 | |||
Interest-bearing | 18,205,155 | 18,030,794 | |||||
Total deposits | 29,002,768 | 28,161,343 | |||||
Short-term borrowings | 795,587 | 603,487 | |||||
Long-term obligations | 727,500 | 832,942 | |||||
FDIC shared-loss payable | 98,013 | 97,008 | |||||
Other liabilities | 293,841 | 283,629 | |||||
Total liabilities | 30,917,709 | 29,978,409 | |||||
Shareholders’ equity | |||||||
Common stock: | |||||||
Class A - $1 par value (16,000,000 shares authorized; 11,005,220 shares issued and outstanding at March 31, 2017 and December 31, 2016) | 11,005 | 11,005 | |||||
Class B - $1 par value (2,000,000 shares authorized; 1,005,185 shares issued and outstanding at March 31, 2017 and December 31, 2016) | 1,005 | 1,005 | |||||
Preferred stock - $0.01 par value (10,000,000 shares authorized; no shares issued and outstanding at March 31, 2017 and December 31, 2016) | — | — | |||||
Surplus | 658,918 | 658,918 | |||||
Retained earnings | 2,540,709 | 2,476,691 | |||||
Accumulated other comprehensive loss | (110,941 | ) | (135,192 | ) | |||
Total shareholders’ equity | 3,100,696 | 3,012,427 | |||||
Total liabilities and shareholders’ equity | $ | 34,018,405 | $ | 32,990,836 |
Three months ended March 31 | |||||||
(Dollars in thousands, except per share data, unaudited) | 2017 | 2016 | |||||
Interest income | |||||||
Loans and leases | $ | 226,630 | $ | 216,404 | |||
Investment securities and dividend income | 29,751 | 23,042 | |||||
Overnight investments | 4,476 | 3,666 | |||||
Total interest income | 260,857 | 243,112 | |||||
Interest expense | |||||||
Deposits | 4,436 | 4,659 | |||||
Short-term borrowings | 580 | 434 | |||||
Long-term obligations | 5,498 | 5,299 | |||||
Total interest expense | 10,514 | 10,392 | |||||
Net interest income | 250,343 | 232,720 | |||||
Provision for loan and lease losses | 8,231 | 4,843 | |||||
Net interest income after provision for loan and lease losses | 242,112 | 227,877 | |||||
Noninterest income | |||||||
Gain on acquisitions | 12,017 | 1,704 | |||||
Cardholder services | 21,258 | 19,358 | |||||
Merchant services | 24,987 | 21,977 | |||||
Service charges on deposit accounts | 22,142 | 21,850 | |||||
Wealth management services | 20,962 | 19,634 | |||||
Securities (losses) gains | (24 | ) | 4,628 | ||||
Other service charges and fees | 7,601 | 6,989 | |||||
Mortgage income | 7,576 | 1,311 | |||||
Insurance commissions | 3,558 | 3,178 | |||||
ATM income | 1,773 | 1,765 | |||||
Adjustments to FDIC shared-loss receivable | (1,628 | ) | (2,533 | ) | |||
Net impact from FDIC shared-loss agreement termination | (45 | ) | — | ||||
Other | 7,115 | 5,421 | |||||
Total noninterest income | 127,292 | 105,282 | |||||
Noninterest expense | |||||||
Salaries and wages | 112,263 | 103,899 | |||||
Employee benefits | 29,293 | 27,350 | |||||
Occupancy expense | 24,762 | 25,012 | |||||
Equipment expense | 24,588 | 22,345 | |||||
Merchant processing | 16,783 | 15,087 | |||||
Cardholder processing | 5,553 | 6,084 | |||||
FDIC insurance expense | 5,593 | 4,789 | |||||
Foreclosure-related expenses | 2,471 | 1,731 | |||||
Merger-related expenses | 833 | 38 | |||||
Other | 42,206 | 45,336 | |||||
Total noninterest expense | 264,345 | 251,671 | |||||
Income before income taxes | 105,059 | 81,488 | |||||
Income taxes | 37,438 | 29,416 | |||||
Net income | $ | 67,621 | $ | 52,072 | |||
Average shares outstanding | 12,010,405 | 12,010,405 | |||||
Net income per share | $ | 5.63 | $ | 4.34 |
Three months ended March 31 | |||||||
(Dollars in thousands, unaudited) | 2017 | 2016 | |||||
Net income | $ | 67,621 | $ | 52,072 | |||
Other comprehensive income: | |||||||
Unrealized gains on securities: | |||||||
Change in unrealized securities gains arising during period | 36,096 | 68,033 | |||||
Tax effect | (13,419 | ) | (26,016 | ) | |||
Reclassification adjustment for net losses (gains) realized and included in income before income taxes | 24 | (4,628 | ) | ||||
Tax effect | (9 | ) | 1,770 | ||||
Total change in unrealized gains on securities, net of tax | 22,692 | 39,159 | |||||
Change in fair value of cash flow hedges: | |||||||
Change in unrecognized loss on cash flow hedges | — | 700 | |||||
Tax effect | — | (263 | ) | ||||
Total change in unrecognized loss on cash flow hedges, net of tax | — | 437 | |||||
Change in pension obligation: | |||||||
Amortization of actuarial losses and prior service cost | 2,500 | 1,652 | |||||
Tax effect | (941 | ) | (632 | ) | |||
Total change in pension obligation, net of tax | 1,559 | 1,020 | |||||
Other comprehensive income | 24,251 | 40,616 | |||||
Total comprehensive income | $ | 91,872 | $ | 92,688 |
(Dollars in thousands, unaudited) | Class A Common Stock | Class B Common Stock | Surplus | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Total Shareholders’ Equity | |||||||||||||||||
Balance at December 31, 2015 | $ | 11,005 | $ | 1,005 | $ | 658,918 | $ | 2,265,621 | $ | (64,440 | ) | $ | 2,872,109 | ||||||||||
Net income | — | — | — | 52,072 | — | 52,072 | |||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | 40,616 | 40,616 | |||||||||||||||||
Cash dividends ($0.30 per share) | — | — | — | (3,603 | ) | — | (3,603 | ) | |||||||||||||||
Balance at March 31, 2016 | $ | 11,005 | $ | 1,005 | $ | 658,918 | $ | 2,314,090 | $ | (23,824 | ) | $ | 2,961,194 | ||||||||||
Balance at December 31, 2016 | $ | 11,005 | $ | 1,005 | $ | 658,918 | $ | 2,476,691 | $ | (135,192 | ) | $ | 3,012,427 | ||||||||||
Net income | — | — | — | 67,621 | — | 67,621 | |||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | 24,251 | 24,251 | |||||||||||||||||
Cash dividends ($0.30 per share) | — | — | — | (3,603 | ) | — | (3,603 | ) | |||||||||||||||
Balance at March 31, 2017 | $ | 11,005 | $ | 1,005 | $ | 658,918 | $ | 2,540,709 | $ | (110,941 | ) | $ | 3,100,696 |
Three months ended March 31 | |||||||
(Dollars in thousands, unaudited) | 2017 | 2016 | |||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net income | $ | 67,621 | $ | 52,072 | |||
Adjustments to reconcile net income to cash provided by operating activities: | |||||||
Provision for loan and lease losses | 8,231 | 4,843 | |||||
Deferred tax expense (benefit) | 6,693 | (8,806 | ) | ||||
Net change in current taxes | 27,462 | 35,678 | |||||
Depreciation | 22,616 | 22,053 | |||||
Net increase in accrued interest payable | 150 | 324 | |||||
Net increase in income earned not collected | (617 | ) | (3,482 | ) | |||
Gain on acquisitions | (12,017 | ) | (1,704 | ) | |||
Securities losses (gains) | 24 | (4,628 | ) | ||||
Loss on termination of FDIC shared-loss agreement | 45 | — | |||||
Origination of loans held for sale | (134,932 | ) | (144,895 | ) | |||
Proceeds from sale of loans held for sale | 162,837 | 140,160 | |||||
Gain on sale of loans held for sale | (3,456 | ) | (2,487 | ) | |||
Gain on sale of portfolio loans | (164 | ) | — | ||||
Net write-downs/losses on other real estate | 1,717 | 2,599 | |||||
Gain/loss on sales of premises and equipment | (156 | ) | — | ||||
Net accretion of premiums and discounts | (10,985 | ) | (12,201 | ) | |||
Amortization of intangible assets | 5,271 | 5,586 | |||||
Reduction in FDIC receivable for shared-loss agreements | 2,591 | 4,076 | |||||
Net increase in FDIC payable for shared-loss agreements | 1,005 | 1,790 | |||||
Net change in other assets | (15,078 | ) | (19,678 | ) | |||
Net change in other liabilities | 8,741 | 3,857 | |||||
Net cash provided by operating activities | 137,599 | 75,157 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Net increase in loans outstanding | (105,100 | ) | (131,923 | ) | |||
Purchases of investment securities available for sale | (871,698 | ) | (1,139,933 | ) | |||
Proceeds from maturities/calls of investment securities held to maturity | 15 | 61 | |||||
Proceeds from maturities/calls of investment securities available for sale | 787,182 | 396,211 | |||||
Proceeds from sales of investment securities available for sale | 14,162 | 987,260 | |||||
Net increase in overnight investments | (856,442 | ) | (805,699 | ) | |||
Proceeds from sales of portfolio loans | 32,294 | — | |||||
Cash paid to the FDIC for shared-loss agreements | (2,760 | ) | (9,871 | ) | |||
Net cash paid to the FDIC for termination of shared-loss agreement | (285 | ) | — | ||||
Proceeds from sales of other real estate | 8,845 | 8,202 | |||||
Proceeds from sales of premises and equipment | 2,205 | — | |||||
Purchases of premises and equipment | (15,459 | ) | (13,595 | ) | |||
Net cash acquired in business acquisitions | 25,646 | 14,745 | |||||
Net cash used by investing activities | (981,395 | ) | (694,542 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Net decrease in time deposits | (107,339 | ) | (84,802 | ) | |||
Net increase in demand and other interest-bearing deposits | 827,009 | 460,086 | |||||
Net increase in short-term borrowings | 87,100 | 92,841 | |||||
Repayment of long-term obligations | (442 | ) | (68 | ) | |||
Origination of long-term obligations | — | 75,000 | |||||
Net cash provided by financing activities | 806,328 | 543,057 | |||||
Change in cash and due from banks | (37,468 | ) | (76,328 | ) | |||
Cash and due from banks at beginning of period | 539,741 | 534,086 | |||||
Cash and due from banks at end of period | $ | 502,273 | $ | 457,758 | |||
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES: | |||||||
Transfers of loans to other real estate | $ | 5,822 | $ | 9,980 | |||
Dividends declared but not paid | 3,603 | 3,603 |
• | Allowance for loan and lease losses; |
• | Fair value of financial instruments, including acquired assets and assumed liabilities; |
• | Pension plan assumptions; |
• | Cash flow estimates on purchased credit-impaired loans; |
• | Goodwill and other intangible assets; |
• | Federal Deposit Insurance Corporation (FDIC) shared-loss payable; and |
• | Income tax assets, liabilities and expense |
(Dollars in thousands) | As recorded by FCB | ||
Assets | |||
Cash and cash equivalents | $ | 3,350 | |
Overnight investments | 7,478 | ||
Investment securities | 14,455 | ||
Loans | 85,149 | ||
Income earned not collected | 31 | ||
Intangible assets | 850 | ||
Other assets | 237 | ||
Total assets acquired | 111,550 | ||
Liabilities | |||
Deposits | 121,755 | ||
Other liabilities | 74 | ||
Total liabilities assumed | 121,829 | ||
Fair value of net liabilities assumed | (10,279 | ) | |
Cash received from FDIC | 22,296 | ||
Gain on acquisition of HCB | $ | 12,017 |
March 31, 2017 | |||||||||||||||
(Dollars in thousands) | Cost | Gross unrealized gains | Gross unrealized losses | Fair value | |||||||||||
Investment securities available for sale | |||||||||||||||
U.S. Treasury | $ | 1,619,380 | $ | 342 | $ | 1,554 | $ | 1,618,168 | |||||||
Government agency | 40,185 | 36 | — | 40,221 | |||||||||||
Mortgage-backed securities | 5,363,747 | 2,946 | 60,586 | 5,306,107 | |||||||||||
Equity securities | 72,064 | 22,201 | — | 94,265 | |||||||||||
Corporate bonds | 49,370 | 220 | 25 | 49,565 | |||||||||||
Other | 11,702 | 45 | 212 | 11,535 | |||||||||||
Total investment securities available for sale | $ | 7,156,448 | $ | 25,790 | $ | 62,377 | $ | 7,119,861 | |||||||
December 31, 2016 | |||||||||||||||
Cost | Gross unrealized gains | Gross unrealized losses | Fair value | ||||||||||||
U.S. Treasury | $ | 1,650,675 | $ | 579 | $ | 935 | $ | 1,650,319 | |||||||
Government agency | 40,291 | 107 | — | 40,398 | |||||||||||
Mortgage-backed securities | 5,259,466 | 2,809 | 86,850 | 5,175,425 | |||||||||||
Equity securities | 71,873 | 11,634 | — | 83,507 | |||||||||||
Corporate bonds | 49,367 | 195 | — | 49,562 | |||||||||||
Other | 7,615 | — | 246 | 7,369 | |||||||||||
Total investment securities available for sale | $ | 7,079,287 | $ | 15,324 | $ | 88,031 | $ | 7,006,580 | |||||||
March 31, 2017 | |||||||||||||||
Cost | Gross unrealized gains | Gross unrealized losses | Fair value | ||||||||||||
Investment securities held to maturity | |||||||||||||||
Mortgage-backed securities | $ | 83 | $ | 6 | $ | — | $ | 89 | |||||||
December 31, 2016 | |||||||||||||||
Cost | Gross unrealized gains | Gross unrealized losses | Fair value | ||||||||||||
Mortgage-backed securities | $ | 98 | $ | 6 | $ | — | $ | 104 |
March 31, 2017 | December 31, 2016 | ||||||||||||||
(Dollars in thousands) | Cost | Fair value | Cost | Fair value | |||||||||||
Investment securities available for sale | |||||||||||||||
Non-amortizing securities maturing in: | |||||||||||||||
One year or less | $ | 550,275 | $ | 549,566 | $ | 842,798 | $ | 842,947 | |||||||
One through five years | 1,109,290 | 1,108,823 | 848,168 | 847,770 | |||||||||||
Five through 10 years | 49,370 | 49,565 | 49,367 | 49,562 | |||||||||||
Over 10 years | 11,702 | 11,535 | 7,615 | 7,369 | |||||||||||
Mortgage-backed securities | 5,363,747 | 5,306,107 | 5,259,466 | 5,175,425 | |||||||||||
Equity securities | 72,064 | 94,265 | 71,873 | 83,507 | |||||||||||
Total investment securities available for sale | $ | 7,156,448 | $ | 7,119,861 | $ | 7,079,287 | $ | 7,006,580 | |||||||
Investment securities held to maturity | |||||||||||||||
Mortgage-backed securities held to maturity | $ | 83 | $ | 89 | $ | 98 | $ | 104 |
Three months ended March 31 | |||||||
(Dollars in thousands) | 2017 | 2016 | |||||
Gross gains on sales of investment securities available for sale | $ | 3 | $ | 4,933 | |||
Gross losses on sales of investment securities available for sale | (27 | ) | (305 | ) | |||
Total realized securities (losses) gains | $ | (24 | ) | $ | 4,628 |
March 31, 2017 | |||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||
(Dollars in thousands) | Fair value | Unrealized losses | Fair value | Unrealized losses | Fair value | Unrealized losses | |||||||||||||||||
Investment securities available for sale: | |||||||||||||||||||||||
U.S. Treasury | $ | 1,068,144 | $ | 1,554 | $ | — | $ | — | $ | 1,068,144 | $ | 1,554 | |||||||||||
Mortgage-backed securities | 4,318,258 | 56,017 | 361,488 | 4,569 | 4,679,746 | 60,586 | |||||||||||||||||
Corporate bonds | 9,975 | 25 | — | — | 9,975 | 25 | |||||||||||||||||
Other | 5,294 | 212 | — | — | 5,294 | 212 | |||||||||||||||||
Total | $ | 5,401,671 | $ | 57,808 | $ | 361,488 | $ | 4,569 | $ | 5,763,159 | $ | 62,377 | |||||||||||
December 31, 2016 | |||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||
Fair value | Unrealized losses | Fair value | Unrealized losses | Fair value | Unrealized losses | ||||||||||||||||||
Investment securities available for sale: | |||||||||||||||||||||||
U.S. Treasury | $ | 807,822 | $ | 935 | $ | — | $ | — | $ | 807,822 | $ | 935 | |||||||||||
Mortgage-backed securities | 4,442,700 | 82,161 | 362,351 | 4,689 | 4,805,051 | 86,850 | |||||||||||||||||
Other | 7,369 | 246 | — | — | 7,369 | 246 | |||||||||||||||||
Total | $ | 5,257,891 | $ | 83,342 | $ | 362,351 | $ | 4,689 | $ | 5,620,242 | $ | 88,031 |
(Dollars in thousands) | March 31, 2017 | December 31, 2016 | |||||
Non-PCI loans and leases: | |||||||
Commercial: | |||||||
Construction and land development | $ | 683,415 | $ | 649,157 | |||
Commercial mortgage | 9,173,612 | 9,026,220 | |||||
Other commercial real estate | 364,862 | 351,291 | |||||
Commercial and industrial | 2,477,911 | 2,567,501 | |||||
Lease financing | 840,201 | 826,270 | |||||
Other | 321,352 | 340,264 | |||||
Total commercial loans | 13,861,353 | 13,760,703 | |||||
Noncommercial: | |||||||
Residential mortgage | 2,945,361 | 2,889,124 | |||||
Revolving mortgage | 2,604,156 | 2,601,344 | |||||
Construction and land development | 218,103 | 231,400 | |||||
Consumer | 1,428,660 | 1,446,138 | |||||
Total noncommercial loans | 7,196,280 | 7,168,006 | |||||
Total non-PCI loans and leases | 21,057,633 | 20,928,709 | |||||
PCI loans: | |||||||
Commercial: | |||||||
Construction and land development | 26,542 | 20,766 | |||||
Commercial mortgage | 455,551 | 453,013 | |||||
Other commercial real estate | 18,723 | 12,645 | |||||
Commercial and industrial | 27,794 | 11,844 | |||||
Other | 1,244 | 1,702 | |||||
Total commercial loans | 529,854 | 499,970 | |||||
Noncommercial: | |||||||
Residential mortgage | 275,904 | 268,777 | |||||
Revolving mortgage | 40,345 | 38,650 | |||||
Consumer | 2,713 | 1,772 | |||||
Total noncommercial loans | 318,962 | 309,199 | |||||
Total PCI loans | 848,816 | 809,169 | |||||
Total loans and leases | $ | 21,906,449 | $ | 21,737,878 |
March 31, 2017 | |||||||||||||||||||||||||||
(Dollars in thousands) | Non-PCI commercial loans and leases | ||||||||||||||||||||||||||
Grade: | Construction and land development | Commercial mortgage | Other commercial real estate | Commercial and industrial | Lease financing | Other | Total non-PCI commercial loans and leases | ||||||||||||||||||||
Pass | $ | 675,254 | $ | 8,977,705 | $ | 360,981 | $ | 2,303,778 | $ | 829,872 | $ | 314,857 | $ | 13,462,447 | |||||||||||||
Special mention | 2,144 | 72,007 | 592 | 23,335 | 3,560 | 1,006 | 102,644 | ||||||||||||||||||||
Substandard | 5,979 | 123,588 | 3,289 | 19,585 | 6,761 | 5,488 | 164,690 | ||||||||||||||||||||
Doubtful | 38 | 312 | — | 7 | — | — | 357 | ||||||||||||||||||||
Ungraded | — | — | — | 131,206 | 8 | 1 | 131,215 | ||||||||||||||||||||
Total | $ | 683,415 | $ | 9,173,612 | $ | 364,862 | $ | 2,477,911 | $ | 840,201 | $ | 321,352 | $ | 13,861,353 | |||||||||||||
December 31, 2016 | |||||||||||||||||||||||||||
Non-PCI commercial loans and leases | |||||||||||||||||||||||||||
Construction and land development | Commercial mortgage | Other commercial real estate | Commercial and industrial | Lease financing | Other | Total non-PCI commercial loans and leases | |||||||||||||||||||||
Pass | $ | 645,232 | $ | 8,821,439 | $ | 347,509 | $ | 2,402,659 | $ | 818,008 | $ | 335,831 | $ | 13,370,678 | |||||||||||||
Special mention | 2,236 | 76,084 | 1,433 | 22,804 | 2,675 | 1,020 | 106,252 | ||||||||||||||||||||
Substandard | 1,683 | 126,863 | 2,349 | 17,870 | 5,415 | 3,413 | 157,593 | ||||||||||||||||||||
Doubtful | 6 | 334 | — | 8 | — | — | 348 | ||||||||||||||||||||
Ungraded | — | 1,500 | — | 124,160 | 172 | — | 125,832 | ||||||||||||||||||||
Total | $ | 649,157 | $ | 9,026,220 | $ | 351,291 | $ | 2,567,501 | $ | 826,270 | $ | 340,264 | $ | 13,760,703 |
March 31, 2017 | |||||||||||||||||||
Non-PCI noncommercial loans and leases | |||||||||||||||||||
(Dollars in thousands) | Residential mortgage | Revolving mortgage | Construction and land development | Consumer | Total non-PCI noncommercial loans and leases | ||||||||||||||
Current | $ | 2,899,295 | $ | 2,582,739 | $ | 215,112 | $ | 1,418,899 | $ | 7,116,045 | |||||||||
30-59 days past due | 27,662 | 11,702 | 610 | 5,661 | 45,635 | ||||||||||||||
60-89 days past due | 3,885 | 3,162 | 1,378 | 2,214 | 10,639 | ||||||||||||||
90 days or greater past due | 14,519 | 6,553 | 1,003 | 1,886 | 23,961 | ||||||||||||||
Total | $ | 2,945,361 | $ | 2,604,156 | $ | 218,103 | $ | 1,428,660 | $ | 7,196,280 | |||||||||
December 31, 2016 | |||||||||||||||||||
Non-PCI noncommercial loans and leases | |||||||||||||||||||
Residential mortgage | Revolving mortgage | Construction and land development | Consumer | Total non-PCI noncommercial loans and leases | |||||||||||||||
Current | $ | 2,839,045 | $ | 2,576,942 | $ | 229,106 | $ | 1,434,658 | $ | 7,079,751 | |||||||||
30-59 days past due | 27,760 | 14,290 | 1,139 | 6,775 | 49,964 | ||||||||||||||
60-89 days past due | 7,039 | 2,698 | 598 | 2,779 | 13,114 | ||||||||||||||
90 days or greater past due | 15,280 | 7,414 | 557 | 1,926 | 25,177 | ||||||||||||||
Total | $ | 2,889,124 | $ | 2,601,344 | $ | 231,400 | $ | 1,446,138 | $ | 7,168,006 |
March 31, 2017 | |||||||||||||||||||||||
(Dollars in thousands) | PCI commercial loans | ||||||||||||||||||||||
Grade: | Construction and land development | Commercial mortgage | Other commercial real estate | Commercial and industrial | Other | Total PCI commercial loans | |||||||||||||||||
Pass | $ | 11,129 | $ | 243,473 | $ | 14,896 | $ | 18,204 | $ | 642 | $ | 288,344 | |||||||||||
Special mention | 1,509 | 66,969 | 641 | 2,449 | — | 71,568 | |||||||||||||||||
Substandard | 10,776 | 131,350 | 2,516 | 2,901 | 602 | 148,145 | |||||||||||||||||
Doubtful | 3,128 | 13,759 | 670 | 4,215 | — | 21,772 | |||||||||||||||||
Ungraded | — | — | — | 25 | — | 25 | |||||||||||||||||
Total | $ | 26,542 | $ | 455,551 | $ | 18,723 | $ | 27,794 | $ | 1,244 | $ | 529,854 | |||||||||||
December 31, 2016 | |||||||||||||||||||||||
PCI commercial loans | |||||||||||||||||||||||
Construction and land development | Commercial mortgage | Other commercial real estate | Commercial and industrial | Other | Total PCI commercial loans | ||||||||||||||||||
Pass | $ | 8,103 | $ | 234,023 | $ | 8,744 | $ | 7,253 | $ | 696 | $ | 258,819 | |||||||||||
Special mention | 950 | 67,848 | 102 | 620 | — | 69,520 | |||||||||||||||||
Substandard | 7,850 | 138,312 | 3,462 | 3,648 | 1,006 | 154,278 | |||||||||||||||||
Doubtful | 3,863 | 12,830 | 337 | 303 | — | 17,333 | |||||||||||||||||
Ungraded | — | — | — | 20 | — | 20 | |||||||||||||||||
Total | $ | 20,766 | $ | 453,013 | $ | 12,645 | $ | 11,844 | $ | 1,702 | $ | 499,970 |
March 31, 2017 | |||||||||||||||
PCI noncommercial loans | |||||||||||||||
(Dollars in thousands) | Residential mortgage | Revolving mortgage | Consumer | Total PCI noncommercial loans | |||||||||||
Current | $ | 236,294 | $ | 34,868 | $ | 2,541 | $ | 273,703 | |||||||
30-59 days past due | 10,017 | 1,231 | 48 | 11,296 | |||||||||||
60-89 days past due | 4,935 | 349 | 3 | 5,287 | |||||||||||
90 days or greater past due | 24,658 | 3,897 | 121 | 28,676 | |||||||||||
Total | $ | 275,904 | $ | 40,345 | $ | 2,713 | $ | 318,962 | |||||||
December 31, 2016 | |||||||||||||||
PCI noncommercial loans | |||||||||||||||
Residential mortgage | Revolving mortgage | Consumer | Total PCI noncommercial loans | ||||||||||||
Current | $ | 230,065 | $ | 33,827 | $ | 1,637 | $ | 265,529 | |||||||
30-59 days past due | 9,595 | 618 | 68 | 10,281 | |||||||||||
60-89 days past due | 6,528 | 268 | 4 | 6,800 | |||||||||||
90 days or greater past due | 22,589 | 3,937 | 63 | 26,589 | |||||||||||
Total | $ | 268,777 | $ | 38,650 | $ | 1,772 | $ | 309,199 |
March 31, 2017 | |||||||||||||||||||||||
(Dollars in thousands) | 30-59 days past due | 60-89 days past due | 90 days or greater | Total past due | Current | Total loans and leases | |||||||||||||||||
Non-PCI loans and leases: | |||||||||||||||||||||||
Construction and land development - commercial | $ | 3,897 | $ | 2 | $ | 102 | $ | 4,001 | $ | 679,414 | $ | 683,415 | |||||||||||
Commercial mortgage | 16,294 | 3,633 | 8,750 | 28,677 | 9,144,935 | 9,173,612 | |||||||||||||||||
Other commercial real estate | 181 | 172 | 530 | 883 | 363,979 | 364,862 | |||||||||||||||||
Commercial and industrial | 9,543 | 1,576 | 3,229 | 14,348 | 2,463,563 | 2,477,911 | |||||||||||||||||
Lease financing | 992 | 733 | 290 | 2,015 | 838,186 | 840,201 | |||||||||||||||||
Residential mortgage | 27,662 | 3,885 | 14,519 | 46,066 | 2,899,295 | 2,945,361 | |||||||||||||||||
Revolving mortgage | 11,702 | 3,162 | 6,553 | 21,417 | 2,582,739 | 2,604,156 | |||||||||||||||||
Construction and land development - noncommercial | 610 | 1,378 | 1,003 | 2,991 | 215,112 | 218,103 | |||||||||||||||||
Consumer | 5,661 | 2,214 | 1,886 | 9,761 | 1,418,899 | 1,428,660 | |||||||||||||||||
Other | 194 | — | 161 | 355 | 320,997 | 321,352 | |||||||||||||||||
Total non-PCI loans and leases | $ | 76,736 | $ | 16,755 | $ | 37,023 | $ | 130,514 | $ | 20,927,119 | $ | 21,057,633 | |||||||||||
December 31, 2016 | |||||||||||||||||||||||
30-59 days past due | 60-89 days past due | 90 days or greater | Total past due | Current | Total loans and leases | ||||||||||||||||||
Non-PCI loans and leases: | |||||||||||||||||||||||
Construction and land development - commercial | $ | 1,845 | $ | 39 | $ | 286 | $ | 2,170 | $ | 646,987 | $ | 649,157 | |||||||||||
Commercial mortgage | 11,592 | 2,773 | 10,329 | 24,694 | 9,001,526 | 9,026,220 | |||||||||||||||||
Other commercial real estate | 310 | — | — | 310 | 350,981 | 351,291 | |||||||||||||||||
Commercial and industrial | 7,918 | 2,102 | 1,051 | 11,071 | 2,556,430 | 2,567,501 | |||||||||||||||||
Lease financing | 1,175 | 444 | 863 | 2,482 | 823,788 | 826,270 | |||||||||||||||||
Residential mortgage | 27,760 | 7,039 | 15,280 | 50,079 | 2,839,045 | 2,889,124 | |||||||||||||||||
Revolving mortgage | 14,290 | 2,698 | 7,414 | 24,402 | 2,576,942 | 2,601,344 | |||||||||||||||||
Construction and land development - noncommercial | 1,139 | 598 | 557 | 2,294 | 229,106 | 231,400 | |||||||||||||||||
Consumer | 6,775 | 2,779 | 1,926 | 11,480 | 1,434,658 | 1,446,138 | |||||||||||||||||
Other | 72 | — | 198 | 270 | 339,994 | 340,264 | |||||||||||||||||
Total non-PCI loans and leases | $ | 72,876 | $ | 18,472 | $ | 37,904 | $ | 129,252 | $ | 20,799,457 | $ | 20,928,709 |
March 31, 2017 | December 31, 2016 | ||||||||||||||
(Dollars in thousands) | Nonaccrual loans and leases | Loans and leases > 90 days and accruing | Nonaccrual loans and leases | Loans and leases > 90 days and accruing | |||||||||||
Non-PCI loans and leases: | |||||||||||||||
Construction and land development - commercial | $ | 778 | $ | — | $ | 606 | $ | — | |||||||
Commercial mortgage | 25,709 | 962 | 26,527 | 482 | |||||||||||
Other commercial real estate | 687 | — | 86 | — | |||||||||||
Commercial and industrial | 4,023 | 584 | 4,275 | 440 | |||||||||||
Lease financing | 1,281 | — | 359 | 683 | |||||||||||
Residential mortgage | 36,257 | 191 | 32,470 | 37 | |||||||||||
Revolving mortgage | 13,931 | — | 14,308 | — | |||||||||||
Construction and land development - noncommercial | 1,315 | — | 1,121 | — | |||||||||||
Consumer | 1,830 | 1,245 | 2,236 | 1,076 | |||||||||||
Other | 275 | — | 319 | — | |||||||||||
Total non-PCI loans and leases | $ | 86,086 | $ | 2,982 | $ | 82,307 | $ | 2,718 |
(Dollars in thousands) | |||
Contractually required payments | $ | 111,250 | |
Cash flows expected to be collected | 101,802 | ||
Fair value of loans at acquisition | 85,149 |
(Dollars in thousands) | |||
Commercial: | |||
Construction and land development | $ | 7,061 | |
Commercial mortgage | 21,836 | ||
Other commercial real estate | 6,404 | ||
Commercial and industrial | 19,675 | ||
Total commercial loans | 54,976 | ||
Noncommercial: | |||
Residential mortgage | 25,857 | ||
Revolving mortgage | 3,434 | ||
Consumer | 882 | ||
Total noncommercial loans | 30,173 | ||
Total PCI loans | $ | 85,149 |
(Dollars in thousands) | 2017 | 2016 | |||||
Balance at January 1 | $ | 809,169 | $ | 950,516 | |||
Fair value of acquired loans | 85,149 | 35,416 | |||||
Accretion | 19,351 | 21,398 | |||||
Payments received and other changes, net | (64,853 | ) | (61,443 | ) | |||
Balance at March 31 | $ | 848,816 | $ | 945,887 | |||
Unpaid principal balance at March 31 | $ | 1,155,034 | $ | 1,665,896 |
(Dollars in thousands) | 2017 | 2016 | |||||
Balance at January 1 | $ | 335,074 | $ | 343,856 | |||
Additions from acquisitions | 16,653 | 6,176 | |||||
Accretion | (19,351 | ) | (21,398 | ) | |||
Reclassifications from nonaccretable difference | 11,277 | 9,905 | |||||
Changes in expected cash flows that do not affect nonaccretable difference | (2,179 | ) | 4,418 | ||||
Balance at March 31 | $ | 341,474 | $ | 342,957 |
Three months ended March 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Construction and land development - commercial | Commercial mortgage | Other commercial real estate | Commercial and industrial | Lease financing | Other | Residential mortgage | Revolving mortgage | Construction and land development - non- commercial | Consumer | Total | ||||||||||||||||||||||||||||||||
Non-PCI Loans | |||||||||||||||||||||||||||||||||||||||||||
Allowance for loan and lease losses: | |||||||||||||||||||||||||||||||||||||||||||
Balance at January 1 | $ | 28,877 | $ | 48,278 | $ | 3,269 | $ | 50,225 | $ | 5,907 | $ | 3,127 | $ | 23,094 | $ | 12,366 | $ | 1,596 | $ | 28,287 | $ | 205,026 | |||||||||||||||||||||
Provision | 2,536 | 6 | 304 | 3,592 | 575 | 517 | 1,061 | 840 | (83 | ) | 1,728 | 11,076 | |||||||||||||||||||||||||||||||
Charge-offs | (77 | ) | (37 | ) | (5 | ) | (3,253 | ) | (173 | ) | (123 | ) | (250 | ) | (825 | ) | — | (3,966 | ) | (8,709 | ) | ||||||||||||||||||||||
Recoveries | 55 | 364 | 4 | 265 | 6 | 13 | 287 | 552 | — | 1,080 | 2,626 | ||||||||||||||||||||||||||||||||
Balance at March 31 | $ | 31,391 | $ | 48,611 | $ | 3,572 | $ | 50,829 | $ | 6,315 | $ | 3,534 | $ | 24,192 | $ | 12,933 | $ | 1,513 | $ | 27,129 | $ | 210,019 | |||||||||||||||||||||
Three months ended March 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Construction and land development - commercial | Commercial mortgage | Other commercial real estate | Commercial and industrial | Lease financing | Other | Residential mortgage | Revolving mortgage | Construction and land development - non- commercial | Consumer | Total | ||||||||||||||||||||||||||||||||
Balance at January 1 | $ | 16,288 | $ | 69,896 | $ | 2,168 | $ | 43,116 | $ | 5,524 | $ | 1,855 | $ | 14,105 | $ | 15,971 | $ | 1,485 | $ | 19,496 | $ | 189,904 | |||||||||||||||||||||
Provision | 943 | 394 | (104 | ) | 2,201 | (282 | ) | (328 | ) | 776 | 1,158 | 87 | 1,995 | 6,840 | |||||||||||||||||||||||||||||
Charge-offs | (426 | ) | (90 | ) | — | (1,317 | ) | — | (71 | ) | (174 | ) | (1,036 | ) | — | (3,108 | ) | (6,222 | ) | ||||||||||||||||||||||||
Recoveries | 80 | 256 | 143 | 479 | 180 | 321 | 20 | 32 | 3 | 990 | 2,504 | ||||||||||||||||||||||||||||||||
Balance at March 31 | $ | 16,885 | $ | 70,456 | $ | 2,207 | $ | 44,479 | $ | 5,422 | $ | 1,777 | $ | 14,727 | $ | 16,125 | $ | 1,575 | $ | 19,373 | $ | 193,026 |
March 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Construction and land development - commercial | Commercial mortgage | Other commercial real estate | Commercial and industrial | Lease financing | Other | Residential mortgage | Revolving mortgage | Construction and land development - non-commercial | Consumer | Total | ||||||||||||||||||||||||||||||||
Allowance for loan and lease losses: | |||||||||||||||||||||||||||||||||||||||||||
ALLL for loans and leases individually evaluated for impairment | $ | 151 | $ | 3,122 | $ | 132 | $ | 1,043 | $ | 213 | $ | 21 | $ | 3,189 | $ | 287 | $ | 103 | $ | 591 | $ | 8,852 | |||||||||||||||||||||
ALLL for loans and leases collectively evaluated for impairment | 31,240 | 45,489 | 3,440 | 49,786 | 6,102 | 3,513 | 21,003 | 12,646 | 1,410 | 26,538 | 201,167 | ||||||||||||||||||||||||||||||||
Total allowance for loan and lease losses | $ | 31,391 | $ | 48,611 | $ | 3,572 | $ | 50,829 | $ | 6,315 | $ | 3,534 | $ | 24,192 | $ | 12,933 | $ | 1,513 | $ | 27,129 | $ | 210,019 | |||||||||||||||||||||
Loans and leases: | |||||||||||||||||||||||||||||||||||||||||||
Loans and leases individually evaluated for impairment | $ | 1,058 | $ | 74,788 | $ | 1,497 | $ | 10,864 | $ | 2,054 | $ | 259 | $ | 34,484 | $ | 8,272 | $ | 2,577 | $ | 1,858 | $ | 137,711 | |||||||||||||||||||||
Loans and leases collectively evaluated for impairment | 682,357 | 9,098,824 | 363,365 | 2,467,047 | 838,147 | 321,093 | 2,910,877 | 2,595,884 | 215,526 | 1,426,802 | 20,919,922 | ||||||||||||||||||||||||||||||||
Total loan and leases | $ | 683,415 | $ | 9,173,612 | $ | 364,862 | $ | 2,477,911 | $ | 840,201 | $ | 321,352 | $ | 2,945,361 | $ | 2,604,156 | $ | 218,103 | $ | 1,428,660 | $ | 21,057,633 | |||||||||||||||||||||
December 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Construction and land development - commercial | Commercial mortgage | Other commercial real estate | Commercial and industrial | Lease financing | Other | Residential mortgage | Revolving mortgage | Construction and land development - non-commercial | Consumer | Total | ||||||||||||||||||||||||||||||||
Allowance for loan and lease losses: | |||||||||||||||||||||||||||||||||||||||||||
ALLL for loans and leases individually evaluated for impairment | $ | 151 | $ | 3,488 | $ | 152 | $ | 1,732 | $ | 75 | $ | 23 | $ | 2,447 | $ | 366 | $ | 109 | $ | 667 | $ | 9,210 | |||||||||||||||||||||
ALLL for loans and leases collectively evaluated for impairment | 28,726 | 44,790 | 3,117 | 48,493 | 5,832 | 3,104 | 20,647 | 12,000 | 1,487 | 27,620 | 195,816 | ||||||||||||||||||||||||||||||||
Total allowance for loan and lease losses | $ | 28,877 | $ | 48,278 | $ | 3,269 | $ | 50,225 | $ | 5,907 | $ | 3,127 | $ | 23,094 | $ | 12,366 | $ | 1,596 | $ | 28,287 | $ | 205,026 | |||||||||||||||||||||
Loans and leases: | |||||||||||||||||||||||||||||||||||||||||||
Loans and leases individually evaluated for impairment | $ | 1,045 | $ | 76,361 | $ | 1,563 | $ | 12,600 | $ | 1,074 | $ | 142 | $ | 31,476 | $ | 7,613 | $ | 2,613 | $ | 1,912 | $ | 136,399 | |||||||||||||||||||||
Loans and leases collectively evaluated for impairment | 648,112 | 8,949,859 | 349,728 | 2,554,901 | 825,196 | 340,122 | 2,857,648 | 2,593,731 | 228,787 | 1,444,226 | 20,792,310 | ||||||||||||||||||||||||||||||||
Total loan and leases | $ | 649,157 | $ | 9,026,220 | $ | 351,291 | $ | 2,567,501 | $ | 826,270 | $ | 340,264 | $ | 2,889,124 | $ | 2,601,344 | $ | 231,400 | $ | 1,446,138 | $ | 20,928,709 |
Three months ended March 31, 2017 | |||||||||||||||||||||||||||||||
(Dollars in thousands) | Construction and land development - commercial | Commercial mortgage | Other commercial real estate | Commercial and industrial | Residential mortgage | Revolving mortgage | Consumer and other | Total | |||||||||||||||||||||||
PCI Loans | |||||||||||||||||||||||||||||||
Allowance for loan and lease losses: | |||||||||||||||||||||||||||||||
Balance at January 1 | $ | 483 | $ | 6,423 | $ | 502 | $ | 504 | $ | 4,818 | $ | 956 | $ | 83 | $ | 13,769 | |||||||||||||||
Provision | (186 | ) | (1,230 | ) | (158 | ) | (142 | ) | (545 | ) | (550 | ) | (34 | ) | (2,845 | ) | |||||||||||||||
Charge-offs | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Recoveries | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Balance at March 31 | $ | 297 | $ | 5,193 | $ | 344 | $ | 362 | $ | 4,273 | $ | 406 | $ | 49 | $ | 10,924 | |||||||||||||||
Three months ended March 31, 2016 | |||||||||||||||||||||||||||||||
(Dollars in thousands) | Construction and land development - commercial | Commercial mortgage | Other commercial real estate | Commercial and industrial | Residential mortgage | Revolving mortgage | Consumer and other | Total | |||||||||||||||||||||||
Balance at January 1 | $ | 1,082 | $ | 7,838 | $ | 773 | $ | 445 | $ | 5,398 | $ | 523 | $ | 253 | $ | 16,312 | |||||||||||||||
Provision | (349 | ) | (980 | ) | 2 | (220 | ) | (347 | ) | (108 | ) | 5 | (1,997 | ) | |||||||||||||||||
Charge-offs | — | (108 | ) | (5 | ) | — | (371 | ) | — | (74 | ) | (558 | ) | ||||||||||||||||||
Recoveries | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Balance at March 31 | $ | 733 | $ | 6,750 | $ | 770 | $ | 225 | $ | 4,680 | $ | 415 | $ | 184 | $ | 13,757 |
March 31, 2017 | |||||||||||||||||||||||||||||||
(Dollars in thousands) | Construction and land development - commercial | Commercial mortgage | Other commercial real estate | Commercial and industrial | Residential mortgage | Revolving mortgage | Consumer and other | Total | |||||||||||||||||||||||
ALLL for loans and leases acquired with deteriorated credit quality | $ | 297 | $ | 5,193 | $ | 344 | $ | 362 | $ | 4,273 | $ | 406 | $ | 49 | $ | 10,924 | |||||||||||||||
Loans and leases acquired with deteriorated credit quality | 26,542 | 455,551 | 18,723 | 27,794 | 275,904 | 40,345 | 3,957 | 848,816 | |||||||||||||||||||||||
December 31, 2016 | |||||||||||||||||||||||||||||||
(Dollars in thousands) | Construction and land development - commercial | Commercial mortgage | Other commercial real estate | Commercial and industrial | Residential mortgage | Revolving mortgage | Consumer and other | Total | |||||||||||||||||||||||
ALLL for loans and leases acquired with deteriorated credit quality | $ | 483 | $ | 6,423 | $ | 502 | $ | 504 | $ | 4,818 | $ | 956 | $ | 83 | $ | 13,769 | |||||||||||||||
Loans and leases acquired with deteriorated credit quality | 20,766 | 453,013 | 12,645 | 11,844 | 268,777 | 38,650 | 3,474 | 809,169 |
March 31, 2017 | |||||||||||||||||||
(Dollars in thousands) | With a recorded allowance | With no recorded allowance | Total | Unpaid principal balance | Related allowance recorded | ||||||||||||||
Non-PCI impaired loans and leases: | |||||||||||||||||||
Construction and land development - commercial | $ | 750 | $ | 308 | $ | 1,058 | $ | 1,191 | $ | 151 | |||||||||
Commercial mortgage | 38,730 | 36,058 | 74,788 | 81,232 | 3,122 | ||||||||||||||
Other commercial real estate | 1,052 | 445 | 1,497 | 1,810 | 132 | ||||||||||||||
Commercial and industrial | 8,053 | 2,811 | 10,864 | 13,244 | 1,043 | ||||||||||||||
Lease financing | 1,808 | 246 | 2,054 | 2,054 | 213 | ||||||||||||||
Other | 116 | 143 | 259 | 274 | 21 | ||||||||||||||
Residential mortgage | 21,606 | 12,878 | 34,484 | 35,863 | 3,189 | ||||||||||||||
Revolving mortgage | 1,627 | 6,645 | 8,272 | 9,535 | 287 | ||||||||||||||
Construction and land development - noncommercial | 862 | 1,715 | 2,577 | 3,044 | 103 | ||||||||||||||
Consumer | 1,425 | 433 | 1,858 | 2,056 | 591 | ||||||||||||||
Total non-PCI impaired loans and leases | $ | 76,029 | $ | 61,682 | $ | 137,711 | $ | 150,303 | $ | 8,852 | |||||||||
December 31, 2016 | |||||||||||||||||||
(Dollars in thousands) | With a recorded allowance | With no recorded allowance | Total | Unpaid principal balance | Related allowance recorded | ||||||||||||||
Non-PCI impaired loans and leases: | |||||||||||||||||||
Construction and land development - commercial | $ | 1,002 | $ | 43 | $ | 1,045 | $ | 1,172 | $ | 151 | |||||||||
Commercial mortgage | 42,875 | 33,486 | 76,361 | 82,658 | 3,488 | ||||||||||||||
Other commercial real estate | 1,279 | 284 | 1,563 | 1,880 | 152 | ||||||||||||||
Commercial and industrial | 8,920 | 3,680 | 12,600 | 16,637 | 1,732 | ||||||||||||||
Lease financing | 1,002 | 72 | 1,074 | 1,074 | 75 | ||||||||||||||
Other | 142 | — | 142 | 233 | 23 | ||||||||||||||
Residential mortgage | 20,269 | 11,207 | 31,476 | 32,588 | 2,447 | ||||||||||||||
Revolving mortgage | 1,825 | 5,788 | 7,613 | 8,831 | 366 | ||||||||||||||
Construction and land development - noncommercial | 645 | 1,968 | 2,613 | 3,030 | 109 | ||||||||||||||
Consumer | 1,532 | 380 | 1,912 | 2,086 | 667 | ||||||||||||||
Total non-PCI impaired loans and leases | $ | 79,491 | $ | 56,908 | $ | 136,399 | $ | 150,189 | $ | 9,210 |
Three months ended March 31, 2017 | Three months ended March 31, 2016 | ||||||||||||||
(Dollars in thousands) | Average balance | Interest income recognized | Average balance | Interest income recognized | |||||||||||
Non-PCI impaired loans and leases: | |||||||||||||||
Construction and land development - commercial | $ | 1,055 | $ | 12 | $ | 3,164 | $ | 41 | |||||||
Commercial mortgage | 75,310 | 642 | 92,945 | 766 | |||||||||||
Other commercial real estate | 1,584 | 8 | 423 | 5 | |||||||||||
Commercial and industrial | 11,529 | 104 | 15,551 | 151 | |||||||||||
Lease financing | 1,568 | 14 | 1,657 | 20 | |||||||||||
Other | 196 | 2 | 1,072 | 14 | |||||||||||
Residential mortgage | 32,963 | 253 | 23,500 | 172 | |||||||||||
Revolving mortgage | 7,969 | 57 | 6,309 | 32 | |||||||||||
Construction and land development - noncommercial | 2,605 | 33 | 556 | 6 | |||||||||||
Consumer | 1,900 | 23 | 1,265 | 18 | |||||||||||
Total non-PCI impaired loans and leases | $ | 136,679 | $ | 1,148 | $ | 146,442 | $ | 1,225 |
March 31, 2017 | December 31, 2016 | ||||||||||||||||||||||
(Dollars in thousands) | Accruing | Nonaccruing | Total | Accruing | Nonaccruing | Total | |||||||||||||||||
Commercial loans | |||||||||||||||||||||||
Construction and land development - commercial | $ | 3,228 | $ | 329 | $ | 3,557 | $ | 3,292 | $ | 308 | $ | 3,600 | |||||||||||
Commercial mortgage | 64,447 | 15,282 | 79,729 | 70,263 | 14,435 | 84,698 | |||||||||||||||||
Other commercial real estate | 863 | 608 | 1,471 | 1,635 | 80 | 1,715 | |||||||||||||||||
Commercial and industrial | 9,124 | 652 | 9,776 | 9,193 | 1,436 | 10,629 | |||||||||||||||||
Lease financing | 1,135 | 917 | 2,052 | 882 | 192 | 1,074 | |||||||||||||||||
Other | 184 | 74 | 258 | 64 | 78 | 142 | |||||||||||||||||
Total commercial TDRs | 78,981 | 17,862 | 96,843 | 85,329 | 16,529 | 101,858 | |||||||||||||||||
Noncommercial | |||||||||||||||||||||||
Residential mortgage | 35,292 | 6,374 | 41,666 | 34,012 | 5,117 | 39,129 | |||||||||||||||||
Revolving mortgage | 6,712 | 1,725 | 8,437 | 6,346 | 1,431 | 7,777 | |||||||||||||||||
Construction and land development - noncommercial | 240 | — | 240 | 240 | — | 240 | |||||||||||||||||
Consumer and other | 1,531 | 326 | 1,857 | 1,603 | 309 | 1,912 | |||||||||||||||||
Total noncommercial TDRs | 43,775 | 8,425 | 52,200 | 42,201 | 6,857 | 49,058 | |||||||||||||||||
Total TDRs | $ | 122,756 | $ | 26,287 | $ | 149,043 | $ | 127,530 | $ | 23,386 | $ | 150,916 |
(Dollars in thousands) | March 31, 2017 | December 31, 2016 | |||||
Accruing TDRs: | |||||||
PCI | $ | 20,296 | $ | 26,068 | |||
Non-PCI | 102,460 | 101,462 | |||||
Total accruing TDRs | 122,756 | 127,530 | |||||
Nonaccruing TDRs: | |||||||
PCI | 298 | 301 | |||||
Non-PCI | 25,989 | 23,085 | |||||
Total nonaccruing TDRs | 26,287 | 23,386 | |||||
All TDRs: | |||||||
PCI | 20,594 | 26,369 | |||||
Non-PCI | 128,449 | 124,547 | |||||
Total TDRs | $ | 149,043 | $ | 150,916 |
Three months ended March 31, 2017 | Three months ended March 31, 2016 | ||||||||||||||||||||||
All restructurings | Restructurings with payment default | All restructurings | Restructurings with payment default | ||||||||||||||||||||
(Dollars in thousands) | Number of Loans | Recorded investment at period end | Number of Loans | Recorded investment at period end | Number of Loans | Recorded investment at period end | Number of Loans | Recorded investment at period end | |||||||||||||||
Non-PCI loans and leases | |||||||||||||||||||||||
Interest only period provided | |||||||||||||||||||||||
Commercial mortgage | — | $ | — | — | $ | — | 1 | $ | 252 | 1 | $ | 252 | |||||||||||
Total interest only | — | — | — | — | 1 | 252 | 1 | 252 | |||||||||||||||
Loan term extension | |||||||||||||||||||||||
Construction and land development - commercial | — | — | — | — | 1 | 404 | — | — | |||||||||||||||
Commercial mortgage | — | — | — | — | 1 | — | — | — | |||||||||||||||
Other commercial real estate | — | — | 1 | 530 | — | — | — | — | |||||||||||||||
Commercial and industrial | 2 | 94 | — | — | — | — | — | — | |||||||||||||||
Residential mortgage | 1 | 32 | 1 | 47 | 1 | 34 | — | — | |||||||||||||||
Consumer | 2 | 14 | — | — | — | — | — | — | |||||||||||||||
Total loan term extension | 5 | 140 | 2 | 577 | 3 | 438 | — | — | |||||||||||||||
Below market interest rate | |||||||||||||||||||||||
Construction and land development - commercial | 1 | 60 | — | — | 1 | 18 | 1 | 18 | |||||||||||||||
Commercial mortgage | 10 | 2,512 | 1 | 92 | 10 | 1,422 | 4 | 511 | |||||||||||||||
Other commercial real estate | 1 | 4 | — | — | — | — | — | — | |||||||||||||||
Commercial and industrial | 3 | 108 | 1 | — | 3 | 12 | — | — | |||||||||||||||
Lease financing | 3 | 839 | 2 | 769 | — | — | — | — | |||||||||||||||
Residential mortgage | 30 | 1,543 | 15 | 824 | 46 | 3,288 | 13 | 841 | |||||||||||||||
Construction and land development - noncommercial | 2 | 412 | — | — | — | — | — | — | |||||||||||||||
Consumer | 2 | 14 | — | — | 2 | 73 | — | — | |||||||||||||||
Other | 1 | 143 | — | — | — | — | — | — | |||||||||||||||
Total below market interest rate | 53 | 5,635 | 19 | 1,685 | 62 | 4,813 | 18 | 1,370 | |||||||||||||||
Discharged from bankruptcy | |||||||||||||||||||||||
Construction and land development - commercial | — | — | — | — | — | — | 1 | 16 | |||||||||||||||
Commercial mortgage | — | — | 1 | 190 | — | — | — | — | |||||||||||||||
Lease financing | 16 | 227 | — | — | — | — | — | — | |||||||||||||||
Residential mortgage | 3 | 140 | 1 | 978 | 1 | 144 | — | — | |||||||||||||||
Revolving mortgage | 4 | 99 | 9 | 649 | 8 | 347 | 8 | 277 | |||||||||||||||
Consumer | 18 | 193 | 10 | 128 | 7 | 68 | 4 | 59 | |||||||||||||||
Total discharged from bankruptcy | 41 | 659 | 21 | 1,945 | 16 | 559 | 13 | 352 | |||||||||||||||
Total non-PCI restructurings | 99 | $ | 6,434 | 42 | $ | 4,207 | 82 | $ | 6,062 | 32 | $ | 1,974 |
Three months ended March 31, 2017 | Three months ended March 31, 2016 | ||||||||||||||||||||||
All restructurings | Restructurings with payment default | All restructurings | Restructurings with payment default | ||||||||||||||||||||
(Dollars in thousands) | Number of loans | Recorded investment at period end | Number of loans | Recorded investment at period end | Number of loans | Recorded investment at period end | Number of loans | Recorded investment at period end | |||||||||||||||
PCI loans | |||||||||||||||||||||||
Below market interest rate | |||||||||||||||||||||||
Construction and land development - commercial | — | $ | — | — | $ | — | 1 | $ | 14 | — | $ | — | |||||||||||
Commercial mortgage | — | — | — | — | 3 | 2,016 | — | — | |||||||||||||||
Residential mortgage | 2 | 181 | 1 | 73 | — | — | — | — | |||||||||||||||
Total below market interest rate | 2 | 181 | 1 | 73 | 4 | 2,030 | — | — | |||||||||||||||
Total PCI restructurings | 2 | $ | 181 | 1 | $ | 73 | 4 | $ | 2,030 | — | $ | — |
(Dollars in thousands) | Covered | Noncovered | Total | ||||||||
Balance at December 31, 2015 | $ | 6,817 | $ | 58,742 | $ | 65,559 | |||||
Additions | 3,936 | 6,044 | 9,980 | ||||||||
Additions acquired in the North Milwaukee State Bank acquisition | — | 330 | 330 | ||||||||
Sales | (523 | ) | (7,547 | ) | (8,070 | ) | |||||
Write-downs | (496 | ) | (2,235 | ) | (2,731 | ) | |||||
Balance at March 31, 2016 | $ | 9,734 | $ | 55,334 | $ | 65,068 | |||||
Balance at December 31, 2016 | $ | 472 | $ | 60,759 | $ | 61,231 | |||||
Additions | — | 5,822 | 5,822 | ||||||||
Sales | (71 | ) | (9,048 | ) | (9,119 | ) | |||||
Write-downs | (52 | ) | (1,391 | ) | (1,443 | ) | |||||
Balance at March 31, 2017 | $ | 349 | $ | 56,142 | $ | 56,491 |
Three months ended March 31 | |||||||
(Dollars in thousands) | 2017 | 2016 | |||||
Beginning balance | $ | 4,172 | $ | 4,054 | |||
Amortization | (600 | ) | (2,375 | ) | |||
Net cash payments to FDIC | 2,760 | 9,871 | |||||
Post-acquisition adjustments | (2,591 | ) | (4,076 | ) | |||
Termination of FDIC shared-loss agreement | 240 | — | |||||
Ending balance | $ | 3,981 | $ | 7,474 |
Three months ended March 31 | |||||||
(Dollars in thousands) | 2017 | 2016 | |||||
Beginning balance | $ | 20,415 | $ | 19,351 | |||
Servicing rights originated | 1,702 | 977 | |||||
Amortization | (1,350 | ) | (1,268 | ) | |||
Valuation allowance reversal (provision) | 4 | (1,874 | ) | ||||
Ending balance | $ | 20,771 | $ | 17,186 |
Three months ended March 31 | |||||||
(Dollars in thousands) | 2017 | 2016 | |||||
Beginning balance | $ | 4 | $ | 95 | |||
Valuation allowance (reversal) provision | (4 | ) | 1,874 | ||||
Ending balance | $ | — | $ | 1,969 |
March 31, 2017 | December 31, 2016 | ||||||
Discount rate - conventional fixed loans | 9.39 | % | 9.45 | % | |||
Discount rate - all loans excluding conventional fixed loans | 10.39 | % | 10.45 | % | |||
Weighted average constant prepayment rate | 9.82 | % | 10.42 | % | |||
Weighted average cost to service a loan | $ | 63.84 | $ | 62.75 |
March 31, 2017 | |||||||||||||||||||
Remaining Contractual Maturity of the Agreements | |||||||||||||||||||
(Dollars in thousands) | Overnight and continuous | Up to 30 Days | 30-90 Days | Greater than 90 Days | Total | ||||||||||||||
Repurchase agreements | |||||||||||||||||||
U.S. Treasury | $ | 677,603 | $ | — | $ | — | $ | 30,000 | $ | 707,603 | |||||||||
Total borrowings | $ | 677,603 | $ | — | $ | — | $ | 30,000 | $ | 707,603 | |||||||||
Gross amount of recognized liabilities for repurchase agreements | $ | 707,603 | |||||||||||||||||
December 31, 2016 | |||||||||||||||||||
Remaining Contractual Maturity of the Agreements | |||||||||||||||||||
Overnight and continuous | Up to 30 Days | 30-90 Days | Greater than 90 Days | Total | |||||||||||||||
Repurchase agreements | |||||||||||||||||||
U.S. Treasury | $ | 590,772 | $ | — | $ | — | $ | 30,000 | $ | 620,772 | |||||||||
Total borrowings | $ | 590,772 | $ | — | $ | — | $ | 30,000 | $ | 620,772 | |||||||||
Gross amount of recognized liabilities for repurchase agreements | $ | 620,772 |
• | Level 1 values are based on quoted prices for identical instruments in active markets. |
• | Level 2 values are based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market. |
• | Level 3 values are generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates that market participants would use in pricing the asset or liability. Valuation techniques include the use of discounted cash flow models and similar techniques. |
(Dollars in thousands) | March 31, 2017 | December 31, 2016 | |||||||||||||
Carrying value | Fair value | Carrying value | Fair value | ||||||||||||
Cash and due from banks | $ | 502,273 | $ | 502,273 | $ | 539,741 | $ | 539,741 | |||||||
Overnight investments | 2,736,514 | 2,736,514 | 1,872,594 | 1,872,594 | |||||||||||
Investment securities available for sale | 7,119,861 | 7,119,861 | 7,006,580 | 7,006,580 | |||||||||||
Investment securities held to maturity | 83 | 89 | 98 | 104 | |||||||||||
Loans held for sale | 49,952 | 49,952 | 74,401 | 74,401 | |||||||||||
Net loans and leases | 21,685,506 | 20,727,792 | 21,519,083 | 20,614,548 | |||||||||||
Receivable from the FDIC for shared-loss agreements | 3,981 | 3,981 | 4,172 | 4,172 | |||||||||||
Income earned not collected | 80,456 | 80,456 | 79,839 | 79,839 | |||||||||||
Federal Home Loan Bank stock | 43,495 | 43,495 | 43,495 | 43,495 | |||||||||||
Mortgage servicing rights | 20,771 | 25,690 | 20,415 | 24,446 | |||||||||||
Deposits | 29,002,768 | 28,976,211 | 28,161,343 | 28,135,698 | |||||||||||
Short-term borrowings | 795,587 | 795,587 | 603,487 | 603,487 | |||||||||||
Long-term obligations | 727,500 | 713,402 | 832,942 | 832,201 | |||||||||||
Payable to the FDIC for shared-loss agreements | 98,013 | 100,948 | 97,008 | 100,069 | |||||||||||
Accrued interest payable | 3,947 | 3,947 | 3,797 | 3,797 |
March 31, 2017 | |||||||||||||||
Fair value measurements using: | |||||||||||||||
(Dollars in thousands) | Fair value | Level 1 inputs | Level 2 inputs | Level 3 inputs | |||||||||||
Assets measured at fair value | |||||||||||||||
Investment securities available for sale | |||||||||||||||
U.S. Treasury | $ | 1,618,168 | $ | — | $ | 1,618,168 | $ | — | |||||||
Government agency | 40,221 | — | 40,221 | — | |||||||||||
Mortgage-backed securities | 5,306,107 | — | 5,306,107 | — | |||||||||||
Equity securities | 94,265 | 30,345 | 63,920 | — | |||||||||||
Corporate bonds | 49,565 | — | 49,565 | — | |||||||||||
Other | 11,535 | — | 11,535 | — | |||||||||||
Total investment securities available for sale | $ | 7,119,861 | $ | 30,345 | $ | 7,089,516 | $ | — | |||||||
Loans held for sale | $ | 49,952 | $ | — | $ | 49,952 | $ | — | |||||||
December 31, 2016 | |||||||||||||||
Fair value measurements using: | |||||||||||||||
Fair value | Level 1 inputs | Level 2 inputs | Level 3 inputs | ||||||||||||
Assets measured at fair value | |||||||||||||||
Investment securities available for sale | |||||||||||||||
U.S. Treasury | $ | 1,650,319 | $ | — | $ | 1,650,319 | $ | — | |||||||
Government agency | 40,398 | — | 40,398 | — | |||||||||||
Mortgage-backed securities | 5,175,425 | — | 5,175,425 | — | |||||||||||
Equity securities | 83,507 | 29,145 | 54,362 | — | |||||||||||
Corporate bonds | 49,562 | — | 49,562 | — | |||||||||||
Other | 7,369 | — | 7,369 | — | |||||||||||
Total investment securities available for sale | $ | 7,006,580 | $ | 29,145 | $ | 6,977,435 | $ | — | |||||||
Loans held for sale | $ | 74,401 | $ | — | $ | 74,401 | $ | — |
March 31, 2017 | |||||||||||
(Dollars in thousands) | Fair Value | Aggregate Unpaid Principal Balance | Difference | ||||||||
Loans held for sale | $ | 49,952 | $ | 48,283 | $ | 1,669 | |||||
December 31, 2016 | |||||||||||
Fair Value | Aggregate Unpaid Principal Balance | Difference | |||||||||
Loans held for sale | $ | 74,401 | $ | 75,893 | $ | (1,492 | ) |
Three months ended March 31 | |||||||
(Dollars in thousands) | 2017 | 2016 | |||||
Gains from fair value changes on loans held for sale | $ | 3,161 | $ | 763 |
March 31, 2017 | |||||||||||||||
Fair value measurements using: | |||||||||||||||
(Dollars in thousands) | Fair value | Level 1 inputs | Level 2 inputs | Level 3 inputs | |||||||||||
Impaired loans | $ | 67,235 | $ | — | $ | — | $ | 67,235 | |||||||
Other real estate not covered under shared-loss agreements remeasured during current year | 12,874 | — | — | 12,874 | |||||||||||
Other real estate covered under shared-loss agreements remeasured during current year | 122 | — | — | 122 | |||||||||||
December 31, 2016 | |||||||||||||||
Fair value measurements using: | |||||||||||||||
Fair value | Level 1 inputs | Level 2 inputs | Level 3 inputs | ||||||||||||
Impaired loans | $ | 70,977 | $ | — | $ | — | $ | 70,977 | |||||||
Other real estate not covered under shared-loss agreements remeasured during current year | 44,963 | — | — | 44,963 | |||||||||||
Other real estate covered under shared-loss agreements remeasured during current year | 439 | — | — | 439 | |||||||||||
Mortgage servicing rights | 342 | — | — | 342 |
Three months ended March 31 | |||||||
(Dollars in thousands) | 2017 | 2016 | |||||
Service cost | $ | 3,376 | $ | 3,220 | |||
Interest cost | 7,380 | 7,180 | |||||
Expected return on assets | (10,698 | ) | (9,159 | ) | |||
Amortization of prior service cost | 52 | 52 | |||||
Amortization of net actuarial loss | 2,234 | 1,600 | |||||
Net periodic benefit cost | $ | 2,344 | $ | 2,893 |
Three months ended March 31 | |||||||
(Dollars in thousands) | 2017 | 2016 | |||||
Service cost | $ | 671 | $ | 650 | |||
Interest cost | 1,683 | 1,675 | |||||
Expected return on assets | (2,796 | ) | (2,779 | ) | |||
Amortization of net actuarial loss | 214 | — | |||||
Net periodic benefit cost | $ | (228 | ) | $ | (454 | ) |
March 31, 2017 | December 31, 2016 | ||||||||||||||||||||||
(Dollars in thousands) | Accumulated other comprehensive loss | Deferred tax benefit | Accumulated other comprehensive loss, net of tax | Accumulated other comprehensive loss | Deferred tax benefit | Accumulated other comprehensive loss, net of tax | |||||||||||||||||
Unrealized losses on investment securities available for sale | $ | (36,587 | ) | $ | (13,404 | ) | $ | (23,183 | ) | $ | (72,707 | ) | $ | (26,832 | ) | $ | (45,875 | ) | |||||
Funded status of defined benefit plans | (139,274 | ) | (51,516 | ) | (87,758 | ) | (141,774 | ) | (52,457 | ) | (89,317 | ) | |||||||||||
Total | $ | (175,861 | ) | $ | (64,920 | ) | $ | (110,941 | ) | $ | (214,481 | ) | $ | (79,289 | ) | $ | (135,192 | ) |
Three months ended March 31, 2017 | |||||||||||||||
(Dollars in thousands) | Unrealized (losses) gains on available for sale securities1 | (Losses) gains on cash flow hedges1 | Defined benefit pension items1 | Total | |||||||||||
Beginning balance | $ | (45,875 | ) | $ | — | $ | (89,317 | ) | $ | (135,192 | ) | ||||
Other comprehensive income before reclassifications | 22,677 | — | — | 22,677 | |||||||||||
Amounts reclassified from accumulated other comprehensive (loss) income | 15 | — | 1,559 | 1,574 | |||||||||||
Net current period other comprehensive income | 22,692 | — | 1,559 | 24,251 | |||||||||||
Ending balance | $ | (23,183 | ) | $ | — | $ | (87,758 | ) | $ | (110,941 | ) | ||||
Three months ended March 31, 2016 | |||||||||||||||
Unrealized (losses) gains on available for sale securities1 | (Losses) gains on cash flow hedges1 | Defined benefit pension items1 | Total | ||||||||||||
Beginning balance | $ | (15,125 | ) | $ | (892 | ) | $ | (48,423 | ) | $ | (64,440 | ) | |||
Other comprehensive income before reclassifications | 42,017 | 437 | — | 42,454 | |||||||||||
Amounts reclassified from accumulated other comprehensive (loss) income | (2,858 | ) | — | 1,020 | (1,838 | ) | |||||||||
Net current period other comprehensive income | 39,159 | 437 | 1,020 | 40,616 | |||||||||||
Ending balance | $ | 24,034 | $ | (455 | ) | $ | (47,403 | ) | $ | (23,824 | ) |
(Dollars in thousands) | Three months ended March 31, 2017 | |||||
Details about accumulated other comprehensive income (loss) | Amounts reclassified from accumulated other comprehensive income (loss)1 | Affected line item in the statement where net income is presented | ||||
Unrealized gains and losses on available for sale securities | $ | (24 | ) | Securities (losses) gains | ||
9 | Income taxes | |||||
$ | (15 | ) | Net income | |||
Amortization of defined benefit pension items | ||||||
Prior service costs | $ | (52 | ) | Employee benefits | ||
Actuarial losses | (2,234 | ) | Employee benefits | |||
(2,500 | ) | Employee benefits | ||||
941 | Income taxes | |||||
$ | (1,559 | ) | Net income | |||
Total reclassifications for the period | $ | (1,574 | ) | |||
Three months ended March 31, 2016 | ||||||
Details about accumulated other comprehensive income (loss) | Amounts reclassified from accumulated other comprehensive income (loss)1 | Affected line item in the statement where net income is presented | ||||
Unrealized gains and losses on available for sale securities | $ | 4,628 | Securities (losses) gains | |||
(1,770 | ) | Income taxes | ||||
$ | 2,858 | Net income | ||||
Amortization of defined benefit pension items | ||||||
Prior service costs | $ | (52 | ) | Employee benefits | ||
Actuarial losses | (1,600 | ) | Employee benefits | |||
(1,652 | ) | Employee benefits | ||||
632 | Income taxes | |||||
$ | (1,020 | ) | Net income | |||
Total reclassifications for the period | $ | 1,838 |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
• | FCB completed the acquisition of HCB which contributed $82.5 million in loans and leases and $106.8 million in deposit balances at March 31, 2017. |
• | Loans grew by $168.6 million to $21.91 billion, or by 3.2 percent on an annualized basis, during the first quarter of 2017, reflecting originated portfolio growth and the HCB acquisition. |
• | Deposits increased $841.4 million, or by 12.1 percent on an annualized basis, from December 31, 2016, primarily due to organic growth in low-cost demand deposit accounts and the deposit balances acquired from HCB. |
• | Net interest income increased $6.4 million, or by 2.6 percent, compared to the fourth quarter of 2016. The increase was primarily due to higher interest income earned on purchased credit impaired (PCI) loans and investment securities. |
• | The taxable-equivalent net interest margin increased 11 basis points to 3.25 percent, compared to the fourth quarter of 2016. The most significant components of the increase were improved investment yields, higher investment portfolio balances and higher non-PCI loan balances. |
• | Net charge-offs on total loans and leases were $6.1 million, or 0.11 percent of average loans and leases on an annualized basis, compared to $9.2 million, or 0.17 percent, during the fourth quarter of 2016. |
• | BancShares remained well capitalized at March 31, 2017, under Basel III capital requirements with a Tier 1 risk-based capital ratio of 12.57 percent, common equity Tier 1 ratio of 12.57 percent, total risk-based capital ratio of 13.99 percent and leverage capital ratio of 9.15 percent. |
2017 | 2016 | |||||||||||||||||||
First | Fourth | Third | Second | First | ||||||||||||||||
(Dollars in thousands, except share data) | Quarter | Quarter | Quarter | Quarter | Quarter | |||||||||||||||
SUMMARY OF OPERATIONS | ||||||||||||||||||||
Interest income | $ | 260,857 | $ | 254,782 | $ | 246,494 | $ | 243,369 | $ | 243,112 | ||||||||||
Interest expense | 10,514 | 10,865 | 10,645 | 11,180 | 10,392 | |||||||||||||||
Net interest income | 250,343 | 243,917 | 235,849 | 232,189 | 232,720 | |||||||||||||||
Provision for loan and lease losses | 8,231 | 16,029 | 7,507 | 4,562 | 4,843 | |||||||||||||||
Net interest income after provision for loan and lease losses | 242,112 | 227,888 | 228,342 | 227,627 | 227,877 | |||||||||||||||
Gain on acquisitions | 12,017 | — | 837 | 3,290 | 1,704 | |||||||||||||||
Noninterest income excluding gain on acquisitions | 115,275 | 124,698 | 117,004 | 136,960 | 103,578 | |||||||||||||||
Noninterest expense | 264,345 | 271,531 | 267,233 | 258,303 | 251,671 | |||||||||||||||
Income before income taxes | 105,059 | 81,055 | 78,950 | 109,574 | 81,488 | |||||||||||||||
Income taxes | 37,438 | 28,365 | 27,546 | 40,258 | 29,416 | |||||||||||||||
Net income | $ | 67,621 | $ | 52,690 | $ | 51,404 | $ | 69,316 | $ | 52,072 | ||||||||||
Net interest income, taxable equivalent | $ | 251,593 | $ | 245,330 | $ | 237,146 | $ | 233,496 | $ | 234,187 | ||||||||||
PER SHARE DATA | ||||||||||||||||||||
Net income | $ | 5.63 | $ | 4.39 | $ | 4.28 | $ | 5.77 | $ | 4.34 | ||||||||||
Cash dividends | 0.30 | 0.30 | 0.30 | 0.30 | 0.30 | |||||||||||||||
Market price at period end (Class A) | 335.37 | 355.00 | 293.89 | 258.91 | 251.07 | |||||||||||||||
Book value at period end | 258.17 | 250.82 | 256.76 | 252.76 | 246.55 | |||||||||||||||
SELECTED QUARTERLY AVERAGE BALANCES | ||||||||||||||||||||
Total assets | $ | 33,494,500 | $ | 33,223,995 | $ | 32,655,417 | $ | 32,161,905 | $ | 31,705,658 | ||||||||||
Investment securities | 7,084,986 | 6,716,873 | 6,452,532 | 6,786,463 | 6,510,248 | |||||||||||||||
Loans and leases (1) | 21,951,444 | 21,548,313 | 21,026,510 | 20,657,094 | 20,349,091 | |||||||||||||||
Interest-earning assets | 31,298,970 | 31,078,428 | 30,446,592 | 29,976,629 | 29,558,629 | |||||||||||||||
Deposits | 28,531,166 | 28,231,477 | 27,609,418 | 27,212,814 | 26,998,026 | |||||||||||||||
Long-term obligations | 816,953 | 835,509 | 842,715 | 817,750 | 750,446 | |||||||||||||||
Interest-bearing liabilities | 19,669,075 | 19,357,282 | 19,114,740 | 19,092,287 | 19,067,251 | |||||||||||||||
Shareholders' equity | $ | 3,061,099 | $ | 3,056,426 | $ | 3,058,155 | $ | 2,989,097 | $ | 2,920,611 | ||||||||||
Shares outstanding | 12,010,405 | 12,010,405 | 12,010,405 | 12,010,405 | 12,010,405 | |||||||||||||||
SELECTED QUARTER-END BALANCES | ||||||||||||||||||||
Total assets | $ | 34,018,405 | $ | 32,990,836 | $ | 32,971,910 | $ | 32,230,403 | $ | 32,195,657 | ||||||||||
Investment securities | 7,119,944 | 7,006,678 | 6,384,940 | 6,557,736 | 6,687,483 | |||||||||||||||
Loans and leases: | ||||||||||||||||||||
PCI | 848,816 | 809,169 | 868,200 | 921,467 | 945,887 | |||||||||||||||
Non-PCI | 21,057,633 | 20,928,709 | 20,428,780 | 19,821,104 | 19,471,802 | |||||||||||||||
Deposits | 29,002,768 | 28,161,343 | 27,925,253 | 27,257,774 | 27,365,245 | |||||||||||||||
Long-term obligations | 727,500 | 832,942 | 840,266 | 850,504 | 779,087 | |||||||||||||||
Shareholders' equity | $ | 3,100,696 | $ | 3,012,427 | $ | 3,083,748 | $ | 3,035,704 | $ | 2,961,194 | ||||||||||
Shares outstanding | 12,010,405 | 12,010,405 | 12,010,405 | 12,010,405 | 12,010,405 | |||||||||||||||
SELECTED RATIOS AND OTHER DATA | ||||||||||||||||||||
Rate of return on average assets (annualized) | 0.82 | % | 0.63 | % | 0.63 | % | 0.87 | % | 0.66 | % | ||||||||||
Rate of return on average shareholders' equity (annualized) | 8.96 | 6.86 | 6.69 | 9.33 | 7.17 | |||||||||||||||
Net yield on interest-earning assets (taxable equivalent) | 3.25 | 3.14 | 3.10 | 3.13 | 3.18 | |||||||||||||||
Allowance for loan and lease losses to total loans and leases: | ||||||||||||||||||||
PCI | 1.29 | 1.70 | 1.34 | 1.25 | 1.45 | |||||||||||||||
Non-PCI | 1.00 | 0.98 | 0.98 | 0.99 | 0.99 | |||||||||||||||
Total | 1.01 | 1.01 | 1.00 | 1.00 | 1.01 | |||||||||||||||
Nonperforming assets to total loans and leases and other real estate at period end: | ||||||||||||||||||||
Covered | 0.59 | 0.66 | 0.75 | 1.17 | 4.74 | |||||||||||||||
Noncovered | 0.66 | 0.67 | 0.75 | 0.77 | 0.74 | |||||||||||||||
Total | 0.66 | 0.67 | 0.75 | 0.77 | 0.80 | |||||||||||||||
Tier 1 risk-based capital ratio | 12.57 | 12.42 | 12.50 | 12.63 | 12.58 | |||||||||||||||
Common equity Tier 1 ratio | 12.57 | 12.42 | 12.50 | 12.63 | 12.58 | |||||||||||||||
Total risk-based capital ratio | 13.99 | 13.85 | 13.96 | 14.10 | 14.09 | |||||||||||||||
Leverage capital ratio | 9.15 | 9.05 | 9.07 | 9.09 | 9.00 | |||||||||||||||
Dividend payout ratio | 5.33 | 6.83 | 7.01 | 5.20 | 6.91 | |||||||||||||||
Average loans and leases to average deposits | 76.94 | 76.33 | 76.16 | 75.91 | 75.37 |
(Dollars in thousands) | As recorded by FCB | ||
Assets | |||
Cash and cash equivalents | $ | 3,350 | |
Overnight investments | 7,478 | ||
Investment securities | 14,455 | ||
Loans | 85,149 | ||
Income earned not collected | 31 | ||
Intangible assets | 850 | ||
Other assets | 237 | ||
Total assets acquired | 111,550 | ||
Liabilities | |||
Deposits | 121,755 | ||
Other liabilities | 74 | ||
Total liabilities assumed | 121,829 | ||
Fair value of net liabilities assumed | (10,279 | ) | |
Cash received from FDIC | 22,296 | ||
Gain on acquisition of HCB | $ | 12,017 |
Three months ended | |||||||||||||||||||||||||||||||||
March 31, 2017 | December 31, 2016 | March 31, 2016 | |||||||||||||||||||||||||||||||
Interest | Interest | Interest | |||||||||||||||||||||||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | Average | Income/ | Yield/ | |||||||||||||||||||||||||
(Dollars in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||
Loans and leases | $ | 21,951,444 | $ | 227,792 | 4.20 | % | $ | 21,548,313 | $ | 226,651 | 4.19 | % | $ | 20,349,091 | $ | 217,732 | 4.30 | % | |||||||||||||||
Investment securities: | |||||||||||||||||||||||||||||||||
U. S. Treasury | 1,644,598 | 4,199 | 1.04 | 1,593,610 | 3,328 | 0.83 | 1,533,028 | 2,880 | 0.76 | ||||||||||||||||||||||||
Government agency | 53,545 | 205 | 1.53 | 172,037 | 396 | 0.92 | 463,597 | 1,031 | 0.89 | ||||||||||||||||||||||||
Mortgage-backed securities | 5,241,296 | 24,322 | 1.86 | 4,802,198 | 20,937 | 1.74 | 4,467,186 | 19,012 | 1.70 | ||||||||||||||||||||||||
Corporate bonds | 57,104 | 980 | 6.87 | 54,255 | 772 | 5.69 | 10,659 | 166 | 6.23 | ||||||||||||||||||||||||
State, county and municipal | — | — | — | — | — | — | 196 | 1 | 2.73 | ||||||||||||||||||||||||
Other | 88,443 | 133 | 0.61 | 94,773 | 253 | 1.06 | 35,582 | 91 | 1.02 | ||||||||||||||||||||||||
Total investment securities | 7,084,986 | 29,839 | 1.69 | 6,716,873 | 25,686 | 1.53 | 6,510,248 | 23,181 | 1.43 | ||||||||||||||||||||||||
Overnight investments | 2,262,540 | 4,476 | 0.80 | 2,813,242 | 3,858 | 0.55 | 2,699,290 | 3,666 | 0.54 | ||||||||||||||||||||||||
Total interest-earning assets | 31,298,970 | $ | 262,107 | 3.39 | % | 31,078,428 | $ | 256,195 | 3.28 | % | 29,558,629 | $ | 244,579 | 3.32 | % | ||||||||||||||||||
Cash and due from banks | 496,929 | 478,779 | 470,159 | ||||||||||||||||||||||||||||||
Premises and equipment | 1,130,049 | 1,134,228 | 1,131,235 | ||||||||||||||||||||||||||||||
FDIC shared-loss receivable | 5,456 | 5,584 | 8,742 | ||||||||||||||||||||||||||||||
Allowance for loan and lease losses | (220,811 | ) | (214,463 | ) | (206,338 | ) | |||||||||||||||||||||||||||
Other real estate owned | 60,034 | 65,670 | 65,616 | ||||||||||||||||||||||||||||||
Other assets | 723,873 | 675,769 | 677,615 | ||||||||||||||||||||||||||||||
Total assets | $ | 33,494,500 | $ | 33,223,995 | $ | 31,705,658 | |||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||||||||||||||||
Checking with interest | $ | 4,834,779 | $ | 252 | 0.02 | % | $ | 4,696,279 | $ | 261 | 0.02 | % | $ | 4,317,299 | $ | 200 | 0.02 | % | |||||||||||||||
Savings | 2,160,689 | 184 | 0.03 | 2,080,598 | 161 | 0.03 | 1,944,805 | 145 | 0.03 | ||||||||||||||||||||||||
Money market accounts | 8,343,092 | 1,859 | 0.09 | 8,113,686 | 1,619 | 0.08 | 8,335,030 | 1,642 | 0.08 | ||||||||||||||||||||||||
Time deposits | 2,815,682 | 2,141 | 0.31 | 2,892,143 | 2,411 | 0.33 | 3,061,333 | 2,672 | 0.35 | ||||||||||||||||||||||||
Total interest-bearing deposits | 18,154,242 | 4,436 | 0.10 | 17,782,706 | 4,452 | 0.10 | 17,658,467 | 4,659 | 0.11 | ||||||||||||||||||||||||
Repurchase agreements | 669,923 | 404 | 0.24 | 726,318 | 485 | 0.27 | 655,787 | 433 | 0.27 | ||||||||||||||||||||||||
Other short-term borrowings | 27,957 | 176 | 2.51 | 12,749 | 52 | 1.63 | 2,551 | 1 | 0.12 | ||||||||||||||||||||||||
Long-term obligations | 816,953 | 5,498 | 2.69 | 835,509 | 5,876 | 2.81 | 750,446 | 5,299 | 2.82 | ||||||||||||||||||||||||
Total interest-bearing liabilities | 19,669,075 | 10,514 | 0.22 | 19,357,282 | 10,865 | 0.22 | 19,067,251 | 10,392 | 0.22 | ||||||||||||||||||||||||
Demand deposits | 10,376,924 | 10,448,771 | 9,339,559 | ||||||||||||||||||||||||||||||
Other liabilities | 387,402 | 361,516 | 378,237 | ||||||||||||||||||||||||||||||
Shareholders' equity | 3,061,099 | 3,056,426 | 2,920,611 | ||||||||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 33,494,500 | $ | 33,223,995 | $ | 31,705,658 | |||||||||||||||||||||||||||
Interest rate spread | 3.17 | % | 3.06 | % | 3.10 | % | |||||||||||||||||||||||||||
Net interest income and net yield on interest-earning assets | $ | 251,593 | 3.25 | % | $ | 245,330 | 3.14 | % | $ | 234,187 | 3.18 | % |
Three months ended March 31, 2017 | |||||||||||
Change from prior year period due to: | |||||||||||
(Dollars in thousands) | Volume | Yield/Rate | Total Change | ||||||||
Assets | |||||||||||
Loans and leases | $ | 16,033 | $ | (5,973 | ) | $ | 10,060 | ||||
Investment securities: | |||||||||||
U. S. Treasury | 235 | 1,084 | 1,319 | ||||||||
Government agency | (1,240 | ) | 414 | (826 | ) | ||||||
Mortgage-backed securities | 3,407 | 1,903 | 5,310 | ||||||||
Corporate bonds | 760 | 54 | 814 | ||||||||
State, county and municipal | (1 | ) | — | (1 | ) | ||||||
Other | 105 | (63 | ) | 42 | |||||||
Total investment securities | 3,266 | 3,392 | 6,658 | ||||||||
Overnight investments | (751 | ) | 1,561 | 810 | |||||||
Total interest-earning assets | $ | 18,548 | $ | (1,020 | ) | $ | 17,528 | ||||
Liabilities | |||||||||||
Interest-bearing deposits: | |||||||||||
Checking with interest | $ | 39 | $ | 13 | $ | 52 | |||||
Savings | 27 | 12 | 39 | ||||||||
Money market accounts | 7 | 210 | 217 | ||||||||
Time deposits | (221 | ) | (310 | ) | (531 | ) | |||||
Total interest-bearing deposits | (148 | ) | (75 | ) | (223 | ) | |||||
Repurchase agreements | 14 | (43 | ) | (29 | ) | ||||||
Other short-term borrowings | 84 | 91 | 175 | ||||||||
Long-term obligations | 456 | (257 | ) | 199 | |||||||
Total interest-bearing liabilities | 406 | (284 | ) | 122 | |||||||
Change in net interest income | $ | 18,142 | $ | (736 | ) | $ | 17,406 |
Three months ended | |||||||||||
(Dollars in thousands) | March 31, 2017 | December 31, 2016 | March 31, 2016 | ||||||||
Gain on acquisitions | $ | 12,017 | $ | — | $ | 1,704 | |||||
Cardholder services | 21,258 | 21,468 | 19,358 | ||||||||
Merchant services | 24,987 | 24,382 | 21,977 | ||||||||
Service charges on deposit accounts | 22,142 | 22,471 | 21,850 | ||||||||
Wealth management services | 20,962 | 19,381 | 19,634 | ||||||||
Securities (losses) gains | (24 | ) | 9,164 | 4,628 | |||||||
Other service charges and fees | 7,601 | 6,708 | 6,989 | ||||||||
Mortgage income | 7,576 | 7,808 | 1,311 | ||||||||
Insurance commissions | 3,558 | 2,952 | 3,178 | ||||||||
ATM income | 1,773 | 1,765 | 1,765 | ||||||||
Adjustments to FDIC receivable for shared-loss agreements | (1,628 | ) | (2,052 | ) | (2,533 | ) | |||||
Net impact from FDIC shared-loss termination | (45 | ) | — | — | |||||||
Recoveries of PCI loans previously charged off | 5,224 | 8,220 | 2,884 | ||||||||
Other | 1,891 | 2,431 | 2,537 | ||||||||
Total noninterest income | $ | 127,292 | $ | 124,698 | $ | 105,282 |
Three months ended | |||||||||||
(Dollars in thousands) | March 31, 2017 | December 31, 2016 | March 31, 2016 | ||||||||
Salaries and wages | $ | 112,263 | $ | 112,631 | $ | 103,899 | |||||
Employee benefits | 29,293 | 24,757 | 27,350 | ||||||||
Occupancy expense | 24,762 | 27,785 | 25,012 | ||||||||
Equipment expense | 24,588 | 23,705 | 22,345 | ||||||||
Merchant processing | 16,783 | 16,662 | 15,087 | ||||||||
Cardholder processing | 5,553 | 5,935 | 6,084 | ||||||||
FDIC insurance expense | 5,593 | 5,794 | 4,789 | ||||||||
Foreclosure-related expenses | 2,471 | 1,859 | 1,731 | ||||||||
Merger-related expenses | 833 | 154 | 38 | ||||||||
Processing fees paid to third parties | 4,316 | 5,328 | 4,102 | ||||||||
Cardholder reward programs | 2,544 | 2,953 | 2,120 | ||||||||
Telecommunications | 3,612 | 3,855 | 3,589 | ||||||||
Consultant expense | 1,879 | 3,327 | 1,771 | ||||||||
Collection expense | 1,292 | 1,788 | 2,581 | ||||||||
Advertising expense | 2,500 | 2,682 | 2,055 | ||||||||
Core deposit intangible amortization | 3,921 | 4,196 | 4,318 | ||||||||
Other | 22,142 | 28,120 | 24,800 | ||||||||
Total noninterest expense | $ | 264,345 | $ | 271,531 | $ | 251,671 |
• | Occupancy expense declined $3.0 million. The largest component of the decline was related to building repairs as a result of Hurricane Matthew recognized in the fourth quarter of 2016. |
• | Consultant expense declined $1.4 million primarily due to non-recurring expenses recognized in the fourth quarter of 2016. |
• | Processing fees paid to third parties declined $1.0 million primarily due to conversion and contract termination costs recognized in the fourth quarter of 2016. |
• | Other expense declined primarily as a result of a $1.2 million reversal of a repurchase reserve on a Small Business Administration (SBA) guaranteed loan, lower losses on asset sales of $528 thousand, lower operational losses of $423 thousand, a decline in appraisal expense of $332 thousand and an increase to the unfunded commitment reserve of $754 thousand recorded in the fourth quarter of 2016. |
• | Employee benefits increased by $4.5 million as a result of higher payroll taxes and health care costs. |
• | Personnel expense, which includes salaries, wages and employee benefits, increased by $10.3 million primarily due to merit increases, increased headcount and higher payroll incentives. |
• | Equipment expense increased by $2.2 million due to software maintenance and software projects placed into service over the past year. |
• | Merchant processing expense increased by $1.7 million related to higher sales volume. |
• | Collection expense declined $1.3 million resulting from managing fewer nonperforming assets. |
March 31, 2017 | December 31, 2016 | March 31, 2016 | |||||||||||||||||||||
(Dollars in thousands) | Cost | Fair value | Cost | Fair value | Cost | Fair Value | |||||||||||||||||
Investment securities available for sale: | |||||||||||||||||||||||
U.S. Treasury | $ | 1,619,380 | $ | 1,618,168 | $ | 1,650,675 | $ | 1,650,319 | $ | 1,538,907 | $ | 1,541,215 | |||||||||||
Government agency | 40,185 | 40,221 | 40,291 | 40,398 | 355,488 | 356,157 | |||||||||||||||||
Mortgage-backed securities | 5,363,747 | 5,306,107 | 5,259,466 | 5,175,425 | 4,693,313 | 4,727,282 | |||||||||||||||||
Equity securities | 72,064 | 94,265 | 71,873 | 83,507 | 50,066 | 52,095 | |||||||||||||||||
Corporate bonds | 49,370 | 49,565 | 49,367 | 49,562 | 8,500 | 8,500 | |||||||||||||||||
Other | 11,702 | 11,535 | 7,615 | 7,369 | 2,115 | 2,040 | |||||||||||||||||
Total investment securities available for sale | 7,156,448 | 7,119,861 | 7,079,287 | 7,006,580 | 6,648,389 | 6,687,289 | |||||||||||||||||
Investment securities held to maturity: | |||||||||||||||||||||||
Mortgage-backed securities | 83 | 89 | 98 | 104 | 194 | 203 | |||||||||||||||||
Total investment securities | $ | 7,156,531 | $ | 7,119,950 | $ | 7,079,385 | $ | 7,006,684 | $ | 6,648,583 | $ | 6,687,492 |
(Dollars in thousands) | March 31, 2017 | December 31, 2016 | March 31, 2016 | ||||||||
Non-PCI loans and leases: | |||||||||||
Commercial: | |||||||||||
Construction and land development | $ | 683,415 | $ | 649,157 | $ | 626,311 | |||||
Commercial mortgage | 9,173,612 | 9,026,220 | 8,353,631 | ||||||||
Other commercial real estate | 364,862 | 351,291 | 324,858 | ||||||||
Commercial and industrial | 2,477,911 | 2,567,501 | 2,389,946 | ||||||||
Lease financing | 840,201 | 826,270 | 751,292 | ||||||||
Other | 321,352 | 340,264 | 343,877 | ||||||||
Total commercial loans | 13,861,353 | 13,760,703 | 12,789,915 | ||||||||
Noncommercial: | |||||||||||
Residential mortgage | 2,945,361 | 2,889,124 | 2,718,208 | ||||||||
Revolving mortgage | 2,604,156 | 2,601,344 | 2,521,902 | ||||||||
Construction and land development | 218,103 | 231,400 | 213,232 | ||||||||
Consumer | 1,428,660 | 1,446,138 | 1,228,545 | ||||||||
Total noncommercial loans | 7,196,280 | 7,168,006 | 6,681,887 | ||||||||
Total non-PCI loans and leases | 21,057,633 | 20,928,709 | 19,471,802 | ||||||||
PCI loans: | |||||||||||
Commercial: | |||||||||||
Construction and land development | 26,542 | 20,766 | 32,799 | ||||||||
Commercial mortgage | 455,551 | 453,013 | 526,776 | ||||||||
Other commercial real estate | 18,723 | 12,645 | 18,050 | ||||||||
Commercial and industrial | 27,794 | 11,844 | 14,742 | ||||||||
Other | 1,244 | 1,702 | 1,860 | ||||||||
Total commercial loans | 529,854 | 499,970 | 594,227 | ||||||||
Noncommercial: | |||||||||||
Residential mortgage | 275,904 | 268,777 | 298,662 | ||||||||
Revolving mortgage | 40,345 | 38,650 | 50,574 | ||||||||
Consumer | 2,713 | 1,772 | 2,424 | ||||||||
Total noncommercial loans | 318,962 | 309,199 | 351,660 | ||||||||
Total PCI loans | 848,816 | 809,169 | 945,887 | ||||||||
Total loans and leases | $ | 21,906,449 | $ | 21,737,878 | $ | 20,417,689 |
2017 | 2016 | ||||||||||||||||||
First | Fourth | Third | Second | First | |||||||||||||||
(Dollars in thousands) | Quarter | Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Allowance for loan and lease losses at beginning of period | $ | 218,795 | $ | 211,950 | $ | 208,008 | $ | 206,783 | $ | 206,216 | |||||||||
Non-PCI provision for loan and lease losses: | |||||||||||||||||||
Commercial: | |||||||||||||||||||
Construction and land development | 2,536 | 10,802 | 835 | 291 | 943 | ||||||||||||||
Commercial mortgage | 6 | (20,844 | ) | (2,163 | ) | 701 | 394 | ||||||||||||
Other commercial real estate | 304 | 958 | 150 | (79 | ) | (104 | ) | ||||||||||||
Commercial and industrial | 3,592 | 9,347 | 2,954 | 81 | 2,201 | ||||||||||||||
Lease financing | 575 | 300 | 274 | 343 | (282 | ) | |||||||||||||
Other | 517 | 985 | 183 | 37 | (328 | ) | |||||||||||||
Total commercial loans | 7,530 | 1,548 | 2,233 | 1,374 | 2,824 | ||||||||||||||
Noncommercial: | |||||||||||||||||||
Residential mortgage | 1,061 | 6,654 | 531 | 1,487 | 776 | ||||||||||||||
Revolving mortgage | 840 | (4,541 | ) | 679 | 1,470 | 1,158 | |||||||||||||
Construction and land development | (83 | ) | (208 | ) | 88 | 78 | 87 | ||||||||||||
Consumer | 1,728 | 10,439 | 3,899 | 2,299 | 1,995 | ||||||||||||||
Total noncommercial loans | 3,546 | 12,344 | 5,197 | 5,334 | 4,016 | ||||||||||||||
Total non-PCI provision | 11,076 | 13,892 | 7,430 | 6,708 | 6,840 | ||||||||||||||
PCI provision for loan losses | (2,845 | ) | 2,137 | 77 | (2,146 | ) | (1,997 | ) | |||||||||||
Non-PCI Charge-offs: | |||||||||||||||||||
Commercial: | |||||||||||||||||||
Construction and land development | (77 | ) | (41 | ) | (77 | ) | (136 | ) | (426 | ) | |||||||||
Commercial mortgage | (37 | ) | (392 | ) | (461 | ) | (44 | ) | (90 | ) | |||||||||
Other commercial real estate | (5 | ) | — | — | — | — | |||||||||||||
Commercial and industrial | (3,253 | ) | (5,321 | ) | (1,198 | ) | (1,177 | ) | (1,317 | ) | |||||||||
Lease financing | (173 | ) | (310 | ) | (132 | ) | — | — | |||||||||||
Other | (123 | ) | 15 | — | (88 | ) | (71 | ) | |||||||||||
Total commercial loans | (3,668 | ) | (6,049 | ) | (1,868 | ) | (1,445 | ) | (1,904 | ) | |||||||||
Noncommercial: | |||||||||||||||||||
Residential mortgage | (250 | ) | (245 | ) | (328 | ) | (179 | ) | (174 | ) | |||||||||
Revolving mortgage | (825 | ) | (779 | ) | (391 | ) | (1,081 | ) | (1,036 | ) | |||||||||
Construction and land development | — | — | — | — | — | ||||||||||||||
Consumer | (3,966 | ) | (4,241 | ) | (3,623 | ) | (3,136 | ) | (3,108 | ) | |||||||||
Total noncommercial loans | (5,041 | ) | (5,265 | ) | (4,342 | ) | (4,396 | ) | (4,318 | ) | |||||||||
Total non-PCI charge-offs | (8,709 | ) | (11,314 | ) | (6,210 | ) | (5,841 | ) | (6,222 | ) | |||||||||
Non-PCI Recoveries: | |||||||||||||||||||
Commercial: | |||||||||||||||||||
Construction and land development | 55 | 120 | 69 | 129 | 80 | ||||||||||||||
Commercial mortgage | 364 | 147 | 378 | 500 | 256 | ||||||||||||||
Other commercial real estate | 4 | 10 | 13 | 10 | 143 | ||||||||||||||
Commercial and industrial | 265 | 207 | 328 | 525 | 479 | ||||||||||||||
Lease financing | 6 | 4 | 5 | 1 | 180 | ||||||||||||||
Other | 13 | 19 | 170 | 29 | 321 | ||||||||||||||
Total commercial loans | 707 | 507 | 963 | 1,194 | 1,459 | ||||||||||||||
Noncommercial: | |||||||||||||||||||
Residential mortgage | 287 | 72 | 334 | 41 | 20 | ||||||||||||||
Revolving mortgage | 552 | 414 | 256 | 214 | 32 | ||||||||||||||
Construction and land development | — | 63 | — | — | 3 | ||||||||||||||
Consumer | 1,080 | 1,074 | 1,092 | 1,111 | 990 | ||||||||||||||
Total noncommercial loans | 1,919 | 1,623 | 1,682 | 1,366 | 1,045 | ||||||||||||||
Total non-PCI recoveries | 2,626 | 2,130 | 2,645 | 2,560 | 2,504 | ||||||||||||||
Non-PCI loans and leases charged off, net | (6,083 | ) | (9,184 | ) | (3,565 | ) | (3,281 | ) | (3,718 | ) | |||||||||
PCI loans charged off, net | — | — | — | (56 | ) | (558 | ) | ||||||||||||
Allowance for loan and lease losses at end of period | $ | 220,943 | $ | 218,795 | $ | 211,950 | $ | 208,008 | $ | 206,783 | |||||||||
Reserve for unfunded commitments | $ | 1,198 | $ | 1,133 | $ | 379 | $ | 399 | $ | 407 |
2017 | 2016 | |||||||||||||||||||
First | Fourth | Third | Second | First | ||||||||||||||||
(Dollars in thousands) | Quarter | Quarter | Quarter | Quarter | Quarter | |||||||||||||||
Average loans and leases: | ||||||||||||||||||||
PCI | $ | 857,501 | $ | 831,858 | $ | 892,115 | $ | 931,820 | $ | 939,839 | ||||||||||
Non-PCI | 21,093,943 | 20,716,455 | 20,134,395 | 19,725,274 | 19,409,252 | |||||||||||||||
Loans and leases at period-end: | ||||||||||||||||||||
PCI | 848,816 | 809,169 | 868,200 | 921,467 | 945,887 | |||||||||||||||
Non-PCI | 21,057,633 | 20,928,709 | 20,428,780 | 19,821,104 | 19,471,802 | |||||||||||||||
Allowance for loan and lease losses allocated to loans and leases: | ||||||||||||||||||||
PCI | 10,924 | 13,769 | 11,632 | 11,555 | 13,757 | |||||||||||||||
Non-PCI | 210,019 | 205,026 | 200,318 | 196,453 | 193,026 | |||||||||||||||
Total | $ | 220,943 | $ | 218,795 | $ | 211,950 | $ | 208,008 | $ | 206,783 | ||||||||||
Net charge-offs (annualized) to average loans and leases: | ||||||||||||||||||||
PCI | — | % | — | % | — | % | 0.02 | % | 0.24 | % | ||||||||||
Non-PCI | 0.12 | 0.18 | 0.07 | 0.07 | 0.08 | |||||||||||||||
Total | 0.11 | 0.17 | 0.07 | 0.06 | 0.08 | |||||||||||||||
ALLL to total loans and leases: | ||||||||||||||||||||
PCI | 1.29 | 1.70 | 1.34 | 1.25 | 1.45 | |||||||||||||||
Non-PCI | 1.00 | 0.98 | 0.98 | 0.99 | 0.99 | |||||||||||||||
Total | 1.01 | 1.01 | 1.00 | 1.00 | 1.01 |
2017 | 2016 | ||||||||||||||||||
First | Fourth | Third | Second | First | |||||||||||||||
(Dollars in thousands) | Quarter | Quarter | Quarter | Quarter | Quarter | ||||||||||||||
ALLL on non-PCI loans and leases (GAAP) | $ | 210,019 | $ | 205,026 | $ | 200,318 | $ | 196,453 | $ | 193,026 | |||||||||
Unamortized discount related to non-PCI loans and leases (GAAP) | 28,402 | 31,525 | 36,126 | 34,991 | 37,878 | ||||||||||||||
Adjusted ALLL on non-PCI loans and leases (non-GAAP) | 238,421 | 236,551 | 236,444 | 231,444 | 230,904 | ||||||||||||||
ALLL on PCI loans (GAAP) | 10,924 | 13,769 | 11,632 | 11,555 | 13,757 | ||||||||||||||
Unamortized discount related to PCI loans (GAAP) | 120,879 | 118,946 | 127,200 | 136,516 | 140,379 | ||||||||||||||
Adjusted ALLL on PCI loans (non-GAAP) | 131,803 | 132,715 | 138,832 | 148,071 | 154,136 | ||||||||||||||
Total ALLL (GAAP) | 220,943 | 218,795 | 211,950 | 208,008 | 206,783 | ||||||||||||||
Net acquisition accounting fair value discounts on loans and leases (GAAP) | 149,281 | 150,471 | 163,326 | 171,507 | 178,257 | ||||||||||||||
Adjusted ALLL (non-GAAP) | $ | 370,224 | $ | 369,266 | $ | 375,276 | $ | 379,515 | $ | 385,040 | |||||||||
Adjusted ALLL to total loans and leases (non-GAAP): | |||||||||||||||||||
Non-PCI | 1.13 | % | 1.13 | % | 1.16 | % | 1.17 | % | 1.19 | % | |||||||||
PCI | 15.53 | 16.40 | 15.99 | 16.07 | 16.30 | ||||||||||||||
Total | 1.69 | % | 1.70 | % | 1.76 | % | 1.83 | % | 1.89 | % |
2017 | 2016 | ||||||||||||||||||
First | Fourth | Third | Second | First | |||||||||||||||
(Dollars in thousands) | Quarter | Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Nonaccrual loans and leases: | |||||||||||||||||||
Non-PCI | $ | 86,086 | $ | 82,307 | $ | 87,043 | $ | 89,006 | $ | 90,455 | |||||||||
PCI | 1,458 | 3,451 | 4,142 | 3,759 | 7,319 | ||||||||||||||
Other real estate | 56,491 | 61,231 | 68,964 | 67,089 | 65,068 | ||||||||||||||
Total nonperforming assets | $ | 144,035 | $ | 146,989 | $ | 160,149 | $ | 159,854 | $ | 162,842 | |||||||||
Nonaccrual loans and leases: | |||||||||||||||||||
Covered under shared-loss agreements | $ | 98 | $ | 93 | $ | 95 | $ | 637 | $ | 2,968 | |||||||||
Not covered under shared-loss agreements | 87,446 | 85,665 | 91,090 | 92,128 | 94,806 | ||||||||||||||
Other real estate: | |||||||||||||||||||
Covered | 349 | 472 | 591 | 484 | 9,734 | ||||||||||||||
Noncovered | 56,142 | 60,759 | 68,373 | 66,605 | 55,334 | ||||||||||||||
Total nonperforming assets | $ | 144,035 | $ | 146,989 | $ | 160,149 | $ | 159,854 | $ | 162,842 | |||||||||
Loans and leases: | |||||||||||||||||||
Covered | $ | 75,895 | $ | 84,821 | $ | 91,469 | $ | 95,534 | $ | 258,179 | |||||||||
Noncovered | 21,830,554 | 21,653,057 | 21,205,511 | 20,647,037 | 20,159,510 | ||||||||||||||
Accruing loans and leases 90 days or more past due | |||||||||||||||||||
Non-PCI | 2,982 | 2,718 | 1,879 | 3,017 | 4,882 | ||||||||||||||
PCI | 75,576 | 65,523 | 67,433 | 76,807 | 70,398 | ||||||||||||||
Ratio of nonperforming assets to total loans, leases and other real estate owned: | |||||||||||||||||||
Covered | 0.59 | % | 0.66 | % | 0.75 | % | 1.17 | % | 4.74 | % | |||||||||
Noncovered | 0.66 | 0.67 | 0.75 | 0.77 | 0.74 | ||||||||||||||
Total | 0.66 | % | 0.67 | % | 0.75 | % | 0.77 | % | 0.80 | % |
(Dollars in thousands) | March 31, 2017 | December 31, 2016 | March 31, 2016 | ||||||||
Accruing TDRs: | |||||||||||
PCI | $ | 20,296 | $ | 26,068 | $ | 29,410 | |||||
Non-PCI | 102,460 | 101,462 | 84,319 | ||||||||
Total accruing TDRs | 122,756 | 127,530 | 113,729 | ||||||||
Nonaccruing TDRs: | |||||||||||
PCI | 298 | 301 | 923 | ||||||||
Non-PCI | 25,989 | 23,085 | 26,745 | ||||||||
Total nonaccruing TDRs | 26,287 | 23,386 | 27,668 | ||||||||
All TDRs: | |||||||||||
PCI | 20,594 | 26,369 | 30,333 | ||||||||
Non-PCI | 128,449 | 124,547 | 111,064 | ||||||||
Total TDRs | $ | 149,043 | $ | 150,916 | $ | 141,397 |
March 31, 2017 | December 31, 2016 | March 31, 2016 | ||||||||||||||||||||||||
(Dollars in thousands) | Subordinated Debentures Owed to Trust | Trust Preferred Securities of the Trusts | Subordinated Debentures Owed to Trust | Trust Preferred Securities of the Trusts | Subordinated Debentures Owed to Trust | Trust Preferred Securities of the Trusts | Maturity Date | |||||||||||||||||||
FCB/NC Capital Trust III | $ | 90,206 | $ | 87,500 | $ | 90,206 | $ | 87,500 | $ | 96,392 | $ | 93,500 | June 30, 2036 | |||||||||||||
FCB/SC Capital Trust II | 24,743 | 24,000 | 24,743 | 24,000 | 25,774 | 25,000 | June 15, 2034 | |||||||||||||||||||
SCB Capital Trust I | 10,310 | 10,000 | 10,310 | 10,000 | 10,310 | 10,000 | April 7, 2034 | |||||||||||||||||||
$ | 125,259 | $ | 121,500 | $ | 125,259 | $ | 121,500 | $ | 132,476 | $ | 128,500 |
March 31, 2017 | December 31, 2016 | March 31, 2016 | Regulatory minimum | Well-capitalized requirement | ||||||||||
BancShares | ||||||||||||||
Risk-based capital ratios | ||||||||||||||
Tier 1 risk-based capital | 12.57 | % | 12.42 | % | 12.58 | % | 6.00 | % | 8.00 | % | ||||
Common equity Tier 1 | 12.57 | 12.42 | 12.58 | 4.50 | 6.50 | |||||||||
Total risk-based capital | 13.99 | 13.85 | 14.09 | 8.00 | 10.00 | |||||||||
Tier 1 leverage ratio | 9.15 | 9.05 | 9.00 | 4.00 | 5.00 | |||||||||
Bank | ||||||||||||||
Risk-based capital ratios | ||||||||||||||
Tier 1 risk-based capital | 12.41 | % | 12.25 | % | 12.35 | % | 6.00 | % | 8.00 | % | ||||
Common equity Tier 1 | 12.41 | 12.25 | 12.35 | 4.50 | 6.50 | |||||||||
Total risk-based capital | 13.37 | 13.21 | 13.32 | 8.00 | 10.00 | |||||||||
Tier 1 leverage ratio | 9.04 | 8.94 | 8.84 | 4.00 | 5.00 |
Estimated increase (decrease) in net interest income | |||||
Change in interest rate (basis point) | March 31, 2017 | December 31, 2016 | |||
+100 | 4.34 | % | 4.12 | % | |
+200 | 5.40 | 5.06 | |||
+300 | 2.60 | 2.08 |
Estimated increase (decrease) in EVE | |||||
Change in interest rate (basis point) | March 31, 2017 | December 31, 2016 | |||
+100 | 3.93 | % | 3.10 | % | |
+200 | 2.13 | 0.85 | |||
+300 | (3.92 | ) | (5.44 | ) |
• | Tactical liquidity measures the risk of a negative cash flow position whereby cash outflows exceed cash inflows over a short-term horizon out to nine weeks; |
• | Structural liquidity measures the amount by which illiquid assets are supported by long-term funding; and |
• | Contingent liquidity utilizes cash flow stress testing across three crisis scenarios to determine the adequacy of our liquidity. |
Item 3. | Quantitative and Qualitative Disclosures about Market Risk |
Item 4. | Controls and Procedures |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Item 6. | Exhibits |
31.1 | Certification of Chief Executive Officer (filed herewith) |
31.2 | Certification of Chief Financial Officer (filed herewith) |
32.1 | Certification of Chief Executive Officer (filed herewith) |
32.2 | Certification of Chief Financial Officer (filed herewith) |
101.INS | XBRL Instance Document |
101.SCH | XBRL Taxonomy Extension Schema |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase |
101.DEF | XBRL Taxonomy Extension Definition Linkbase |
101.LAB | XBRL Taxonomy Extension Label Linkbase |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase |
Date: | May 4, 2017 | FIRST CITIZENS BANCSHARES, INC. | ||
(Registrant) | ||||
By: | /s/ CRAIG L. NIX | |||
Craig L. Nix | ||||
Chief Financial Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of First Citizens BancShares, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Frank B. Holding, Jr. |
Frank B. Holding, Jr. |
Chief Executive Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of First Citizens BancShares, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Craig L. Nix |
Craig L. Nix |
Chief Financial Officer |
/s/ Frank B. Holding, Jr. |
Frank B. Holding, Jr. |
Chief Executive Officer |
/s/ Craig L. Nix |
Craig L. Nix |
Chief Financial Officer |
Document And Entity Information - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
May 03, 2017 |
|
Entity Registrant Name | FIRST CITIZENS BANCSHARES INC /DE/ | |
Entity Central Index Key | 0000798941 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Class A Common Stock | ||
Entity Common Stock, Shares Outstanding | 11,005,220 | |
Class B Common Stock | ||
Entity Common Stock, Shares Outstanding | 1,005,185 |
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shared authorized | 16,000,000 | 16,000,000 |
Common stock, shares issued | 11,005,220 | 11,005,220 |
Common stock, shares outstanding | 11,005,220 | 11,005,220 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shared authorized | 2,000,000 | 2,000,000 |
Common stock, shares issued | 1,005,185 | 1,005,185 |
Common stock, shares outstanding | 1,005,185 | 1,005,185 |
Consolidated Statements of Changes In Shareholders' Equity - USD ($) $ in Thousands |
Total |
Common Stock
Class A Common Stock
|
Common Stock
Class B Common Stock
|
Surplus |
Retained Earnings |
Accumulated Other Comprehensive Loss |
---|---|---|---|---|---|---|
Balance at Dec. 31, 2015 | $ 2,872,109 | $ 11,005 | $ 1,005 | $ 658,918 | $ 2,265,621 | $ (64,440) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 52,072 | 0 | 0 | 0 | 52,072 | 0 |
Other comprehensive income, net of tax | 40,616 | 0 | 0 | 0 | 0 | 40,616 |
Cash dividends | (3,603) | 0 | 0 | 0 | (3,603) | 0 |
Balance at Mar. 31, 2016 | 2,961,194 | 11,005 | 1,005 | 658,918 | 2,314,090 | (23,824) |
Balance at Dec. 31, 2016 | 3,012,427 | 11,005 | 1,005 | 658,918 | 2,476,691 | (135,192) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 67,621 | 0 | 0 | 0 | 67,621 | 0 |
Other comprehensive income, net of tax | 24,251 | 0 | 0 | 0 | 0 | 24,251 |
Cash dividends | (3,603) | 0 | 0 | 0 | (3,603) | 0 |
Balance at Mar. 31, 2017 | $ 3,100,696 | $ 11,005 | $ 1,005 | $ 658,918 | $ 2,540,709 | $ (110,941) |
Consolidated Statements of Changes In Shareholders' Equity (Parenthetical) - $ / shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends (in dollars per share) | $ 0.30 | $ 0.30 |
Class A Common Stock | ||
Statement of Stockholders' Equity [Abstract] | ||
Repurchase of common stock (in shares) | 0 | 0 |
Class B Common Stock | ||
Statement of Stockholders' Equity [Abstract] | ||
Repurchase of common stock (in shares) | 0 | 0 |
Accounting Policies and Basis of Presentation |
3 Months Ended | ||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2017 | |||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||
Accounting Policies and Basis of Presentation | ACCOUNTING POLICIES AND BASIS OF PRESENTATION First Citizens BancShares, Inc. (BancShares) is a financial holding company organized under the laws of Delaware and conducts operations through its banking subsidiary, First-Citizens Bank & Trust Company (FCB), which is headquartered in Raleigh, North Carolina. General These consolidated financial statements and notes thereto are presented in accordance with instructions for Form 10-Q and Article 10 of Regulation S-X and, therefore, do not include all information and notes necessary for a complete presentation of financial position, results of operations and cash flow activity required in accordance with accounting principles generally accepted in the United States of America (GAAP). In the opinion of management, all normal recurring adjustments necessary for a fair presentation of the consolidated financial position and consolidated results of operations have been made. The unaudited interim consolidated financial statements included in this Form 10-Q should be read in conjunction with the consolidated financial statements and footnotes included in BancShares' Annual Report on Form 10-K for the year ended December 31, 2016. Reclassifications In certain instances, amounts reported in prior years' consolidated financial statements have been reclassified to conform to the current financial statement presentation. Such reclassifications had no effect on previously reported shareholders' equity or net income. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates, and different assumptions in the application of these policies could result in material changes in BancShares' consolidated financial position, the consolidated results of operations or related disclosures. Material estimates that are particularly susceptible to significant change include:
Recently Adopted Accounting Pronouncements Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) 2017-03, Accounting Changes and Error Corrections (Topic 250) and Investments - Equity Method and Joint Ventures (Topic 323): Amendments to SEC Paragraphs Pursuant to Staff Announcements at the September 22, 2016 and November 17, 2016 EITF Meetings (SEC Update) This ASU adds an SEC paragraph and amends other Topics pursuant to an SEC Staff Announcement that states a registrant should evaluate ASUs that have not yet been adopted, including ASU 2014-09, Revenue from Contracts with Customers (Topic 606), ASU 2016-02, Leases (Topic 842), and ASU 2016-13, Financial Instruments–Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, to determine the appropriate financial statement disclosures about the potential material effects of those ASUs on the financial statements when adopted. If a registrant does not know or cannot reasonably estimate the impact that adoption of the ASUs referenced are expected to have on the financial statements, then in addition to making a statement to that effect, the registrant should consider additional qualitative financial statement disclosures to assist the reader in assessing the significance of the impact the adoption will have on the financial statements, and a comparison to the registrant's current accounting policies. A registrant should describe the status of its process to implement the new standards and the significant matters yet to be addressed. This ASU also addresses the accounting for tax benefits resulting from investments in qualified affordable housing projects where the decision to apply the proportional amortization method of accounting is an accounting policy decision to be applied consistently to all investments that meet the conditions, rather than a decision to be applied to individual investments that qualify for the use of the proportional amortization method. The amendments in this ASU are effective upon issuance. We adopted the guidance effective in the first quarter of 2017. The disclosures required by this ASU are included within the “Recently Issued Accounting Pronouncements” section below. The adoption did not have an impact on our consolidated financial position or consolidated results of operations. FASB ASU 2016-17, Consolidation (Topic 810): Interests Held Through Related Parties That Are Under Common Control This ASU does not change the characteristics of a primary beneficiary in current GAAP; however, it requires that a reporting entity, in determining whether it satisfies the second characteristic of a primary beneficiary, to include all of its direct variable interests in a VIE and, on a proportionate basis, its indirect variable interests in a VIE held through related parties, including related parties that are under common control with the reporting entity. If, after performing that assessment, a reporting entity that is the single decision maker of a VIE concludes that it does not have the characteristics of a primary beneficiary, the amendments continue to require that reporting entity to evaluate whether it and one or more of its related parties under common control, as a group, have the characteristics of a primary beneficiary, then the party within the related party group that is most closely associated with the VIE is the primary beneficiary. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. We adopted the guidance effective in the first quarter of 2017. The adoption did not have an impact on our consolidated financial position or consolidated results of operations. FASB ASU 2016-07, Investments—Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting This ASU eliminates the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. The ASU requires that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor's previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. Therefore, upon qualifying for the equity method of accounting, no retroactive adjustment of the investment is required. Further, the ASU requires that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings, the unrealized gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. The amendments in this ASU are effective for all entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. We adopted the guidance effective in the first quarter of 2017. The adoption did not have any impact on our consolidated financial position or consolidated results of operations. Recently Issued Accounting Pronouncements FASU ASU 2017-01, Business Combinations (Topic 805), Clarifying the Definition of a Business This ASU provides a more robust framework to use in determining when a set of assets and activities is a business, including narrowing the definition of outputs and align it with how outputs are described in Topic 606. This ASU provides a screen to determine when an integrated set of assets and activities (collectively referred to as a "set") is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired or disposed of is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This screen reduces the number of transactions that need to be further evaluated. If the screen is not met, the amendments in this ASU (1) require that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and (2) remove the evaluation of whether a market participant could replace missing elements. The framework includes two sets of criteria to consider that depend on whether a set has outputs. The amendments in this ASU are effective for public business entities for annual periods beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of this standard is not expected to have an impact on our consolidated financial position or results of operation and we will adopt the guidance during the first quarter of 2018. FASB ASU 2017-07, Compensation - Retirement Benefits (Topic 715), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost This ASU requires that an employer report the service cost component in the same line item or line items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. Of the components of net periodic benefit cost, only the service cost component will be eligible for asset capitalization. The amendments in this ASU are effective for public business entities for annual periods beginning after December 15, 2017, including interim periods within those annual periods. Early adoption is permitted as of the beginning of an annual reporting period. The amendments shall be applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement and prospectively, on and after the effective date, for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit in assets. The adoption of this standard is not expected to have a significant impact on our consolidated financial position or results of operation and we will adopt the guidance during the first quarter of 2018. FASB ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment This ASU eliminates Step 2 from the goodwill impairment test. Under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, under the amendments in this ASU, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. This ASU eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative test. This ASU will be effective for BancShares' annual or interim goodwill impairment tests in fiscal year 2020. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of this standard is not expected to have an impact on our consolidated financial position or results of operation and we expect to adopt the guidance for our annual impairment test in fiscal year 2020. FASB ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash The amendments in this ASU require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This ASU does not provide a definition of restricted cash or restricted cash equivalents. This ASU is effective for fiscal years beginning after December 15, 2017 for public business entities, including interim periods within those fiscal years. The adoption of this standard is not expected to have an impact on our Consolidated Statements of Cash Flows. FASB ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory This ASU states that an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory, such as intellectual property or property, plant and equipment, when the transfer occurs. This ASU does not change GAAP for an intra-entity transfer of inventory. Current GAAP prohibits the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2017, including interim reporting periods within those annual reporting periods, and should be applied on a modified retrospective basis. The adoption of this standard is not expected to have an impact on our consolidated financial position or results of operation and we will adopt the guidance during the first quarter of 2018. FASB ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments This ASU addresses the diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments in this ASU provide guidance on (1) debt prepayment or debt extinguishment costs; (2) settlement of zero-coupon debt instruments; (3) contingent consideration payments made after a business combination; (4) proceeds from the settlement of insurance claims; (5) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; (6) distributions received from equity method investees; (7) beneficial interests in securitization transactions; and (8) separately identifiable cash flows and application of the predominance principle. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. The guidance requires application using a retrospective transition method. We will adopt the guidance during the first quarter of 2018. The adoption of this standard is not expected to have a significant impact on our Consolidated Statements of Cash Flows. FASB ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments This ASU eliminates the delayed recognition of the full amount of credit losses until the loss was probable of occurring and instead will reflect an entity's current estimate of all expected credit losses. The amendments in this ASU broaden the information that an entity must consider in developing its expected credit loss estimate for assets measured either collectively or individually. The ASU does not specify a method for measuring expected credit losses and allows an entity to apply methods that reasonably reflect its expectations of the credit loss estimate based on the entity's size, complexity and risk profile. In addition, the disclosures of credit quality indicators in relation to the amortized cost of financing receivables, a current disclosure requirement, are further disaggregated by year of origination. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018. For BancShares, the standard will apply to loans, unfunded loan commitments and debt securities available for sale. We will adopt the guidance by the first quarter of 2020 with a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption. We are currently evaluating the impact the new standard will have on our consolidated financial statement as the final impact will be dependent, among other items, upon the loan portfolio composition and quality at the adoption date, as well as economic conditions and forecasts at that time. FASB ASU 2016-02, Leases (Topic 842) This ASU increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The key difference between existing standards and this ASU is the requirement for lessees to recognize on their balance sheet all lease contracts. An entity may make an accounting election by classification to not recognize leases with terms less than 12 months on their balance sheet. Both a right-of-use asset, representing the right to use the leased asset, and a lease liability, representing the contractual obligation, are required to be recognized on the balance sheet of the lessee at lease commencement. Further, this ASU requires lessees to classify leases as either operating or finance leases, which are substantially similar to the current operating and capital leases classifications. The distinction between these two classifications under the new standard does not relate to balance sheet treatment, but relates to treatment in the statements of income and cash flows. Lessor guidance remains largely unchanged with the exception of how a lessor determines the appropriate lease classification for each lease to better align the lessor guidance with revised lessee classification guidance. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. For BancShares, the impact of this ASU will primarily relate to its accounting and reporting of leases as a lessee. We will adopt during the first quarter of 2019. While we are currently evaluating the impact of the new standard, we expect an increase to the Consolidated Balance Sheets for right-of-use assets and associated lease liabilities, as well as resulting depreciation expense of the right-of-use assets and interest expense of the lease liabilities in the Consolidated Statements of Income, for arrangements previously accounted for as operating leases. FASB ASU 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities This ASU addresses certain aspects of recognition, measurement, presentation and disclosure of certain financial instruments. The amendments in this ASU (1) require equity investments to be measured at fair value with changes in fair value recognized in net income; (2) simplify the impairment assessment of equity investments without a readily determinable fair value; (3) eliminate the requirement to disclose the method(s) and significant assumptions used to estimate the fair value for financial instruments measured at amortized cost on the balance sheet; (4) require public business entities to use exit price notion, rather than entry prices, when measuring fair value of financial instruments for disclosure purposes; (5) require separate presentation of financial assets and financial liabilities by measurement category and form of financial assets on the balance sheet or the accompanying notes to the financial statements; (6) require separate presentation in other comprehensive income of the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the organization has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; and (7) state that a valuation allowance on deferred tax assets related to available-for-sale securities should be evaluated in combination with other deferred tax assets. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The ASU only permits early adoption of the instrument-specific credit risk provision. We will adopt during the first quarter of 2018 with a cumulative-effect adjustment from accumulated other comprehensive income (AOCI) to retained earnings as of the beginning of the year of adoption. We are currently evaluating the impact the new standard will have on our consolidated financial statements. The cumulative-effect adjustment will be impacted by the equity securities portfolio composition and valuation at the date of adoption. FASB ASU 2014-09, Revenue from Contracts with Customers (Topic 606) In May 2014, the FASB issued a standard on the recognition of revenue from contracts with customers with the core principle being for companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services. The new standard also results in enhanced disclosures about revenue, provides guidance for transactions that were not previously addressed comprehensively and improves guidance for multiple-element arrangements. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations, to improve the operability and understandability of the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, to clarify guidance for identifying performance obligations and licensing implementation. In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, to clarify and improve the guidance for certain aspects of Topic 606. In December 2016, the FASB issued ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers, to clarify guidance for certain aspects of Topic 606. Per ASU 2015-14, Deferral of the Effective Date, this guidance was deferred and is effective for fiscal periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Early adoption is permitted for fiscal periods beginning after December 15, 2016. Our revenue is comprised of net interest income on financial assets and liabilities, which is explicitly excluded from the scope of the new guidance, and noninterest income. The contracts that are in scope of the guidance are primarily related to service charges on deposit accounts, cardholder and merchant income, wealth advisory services income, other service charges and fees, sales of other real estate, insurance commissions and miscellaneous fees. We continue to evaluate the impact of the new standard on our noninterest income and on our presentation and disclosures. We expect to adopt the ASU during the first quarter of 2018 with a cumulative-effect adjustment to opening retained earnings and the modified retrospective approach will likely be used. |
Business Combinations |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations | NOTE B - BUSINESS COMBINATIONS Harvest Community Bank On January 13, 2017, FCB entered into an agreement with the FDIC, as Receiver, to purchase certain assets and assume certain liabilities of Harvest Community Bank (HCB) of Pennsville, New Jersey. The acquisition provides FCB with the opportunity to grow capital and enhance earnings. The HCB transaction was accounted for under the acquisition method of accounting and, accordingly, assets acquired and liabilities assumed were recorded at their estimated fair values on the acquisition date. Fair values are preliminary and subject to refinement for up to one year after the closing date of the acquisition as additional information regarding closing date fair values becomes available. The fair value of the assets acquired was $111.6 million, including $85.1 million in purchased credit-impaired (PCI) loans and $850 thousand of identifiable intangible assets. Liabilities assumed were $121.8 million of which the majority were deposits. As a result of the transaction, FCB recorded a gain on the acquisition of $12.0 million which is included in noninterest income in the Consolidated Statements of Income. The following table provides the identifiable assets acquired and liabilities assumed at their estimated fair values as of the acquisition date.
Merger-related expenses of $735 thousand were recorded in the Consolidated Statements of Income for the three months ended March 31, 2017. Loan-related interest income generated from HCB was approximately $1.0 million for the first quarter of 2017. All loans resulting from the HCB transaction were recorded at the acquisition date with a discount attributable, at least in part, to credit quality, and are therefore accounted for as PCI under ASC 310-30. |
Investments |
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Investments | INVESTMENTS The amortized cost and fair value of investment securities classified as available for sale and held to maturity at March 31, 2017 and December 31, 2016, are as follows:
Investments in mortgage-backed securities primarily represent securities issued by the Government National Mortgage Association, Federal National Mortgage Association and Federal Home Loan Mortgage Corporation. Investments in equity securities and corporate bonds represent positions in securities of other financial institutions. Other includes investments in trust preferred securities of financial institutions. The following table provides the amortized cost and fair value by contractual maturity. Expected maturities will differ from contractual maturities on certain securities because borrowers and issuers may have the right to call or prepay obligations with or without prepayment penalties. Repayments of mortgage-backed securities are dependent on the repayments of the underlying loan balances. Equity securities do not have a stated maturity date.
For each period presented, realized securities gains (losses) included the following:
The following table provides information regarding securities with unrealized losses as of March 31, 2017 and December 31, 2016.
Investment securities with an aggregate fair value of $361.5 million and $362.4 million had continuous unrealized losses for more than 12 months with a corresponding aggregate unrealized loss of $4.6 million and $4.7 million as of March 31, 2017 and December 31, 2016, respectively. As of March 31, 2017, all 52 of these investments are government sponsored enterprise-issued mortgage-backed securities. None of the unrealized losses identified as of March 31, 2017 or December 31, 2016 relate to the marketability of the securities or the issuer’s ability to honor redemption obligations. Rather, the unrealized losses relate to changes in interest rates relative to when the investment securities were purchased. For all periods presented, BancShares had the ability and intent to retain these securities for a period of time sufficient to recover all unrealized losses. Therefore, none of the securities were deemed to be other than temporarily impaired. Investment securities having an aggregate carrying value of $5.01 billion at March 31, 2017 and $4.55 billion at December 31, 2016 were pledged as collateral to secure public funds on deposit and certain short-term borrowings, and for other purposes as required by law. |
Loans and Leases |
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Loans and Leases Receivable Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans and Leases | LOANS AND LEASES BancShares' accounting methods for loans and leases differ depending on whether they are purchased credit-impaired (PCI) or non-PCI. Non-PCI loans and leases include originated commercial, originated noncommercial, purchased non-impaired loans, purchased leases and certain purchased revolving credit. For purchased non-impaired loans to be included as non-PCI, it must be determined that the loans do not have any credit deterioration at the time of acquisition. Conversely, loans for which it is probable at acquisition that all required payments will not be collected in accordance with contractual terms are considered impaired and, therefore, classified as PCI loans. PCI loans are accounted for under the guidance in ASC Topic 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality. PCI loans and leases are recorded at fair value at the date of acquisition. No allowance for loan and lease losses is recorded on the acquisition date as the fair value of the acquired assets incorporates assumptions regarding credit risk. An allowance is recorded if there is additional credit deterioration after the acquisition date. BancShares reports PCI and non-PCI loan portfolios separately, and each portfolio is further divided into commercial and non-commercial based on the type of borrower, purpose, collateral, and/or our underlying credit management processes. Additionally, loans are assigned to loan classes, which further disaggregate loans based upon common risk characteristics. Commercial – Commercial loans include construction and land development, commercial mortgage, other commercial real estate, commercial and industrial, lease financing and other. Construction and land development – Construction and land development consists of loans to finance land for development, investment, and use in a commercial business enterprise; multifamily apartments; and other commercial buildings that may be owner-occupied or income generating investments for the owner. Commercial mortgage – Commercial mortgage consists of loans to purchase or refinance owner-occupied nonresidential and investment properties. Investment properties include office buildings and other facilities that are rented or leased to unrelated parties. Other commercial real estate – Other commercial real estate consists of loans secured by farmland (including residential farms and other improvements) and multifamily (5 or more) residential properties. Commercial and industrial – Commercial and industrial consists of loans or lines of credit to finance corporate credit cards, accounts receivable, inventory and other general business purposes. Lease financing – Lease financing consists solely of lease financing agreements for business equipment, vehicles and other assets. Other – Other consists of all other commercial loans not classified in one of the preceding classes. These typically include loans to non-profit organizations such as churches, hospitals, educational and charitable organizations. Noncommercial – Noncommercial consist of residential and revolving mortgage, construction and land development, and consumer loans. Residential mortgage – Residential real estate consists of loans to purchase, construct or refinance the borrower's primary dwelling, second residence or vacation home. Revolving mortgage – Revolving mortgage consists of home equity lines of credit that are secured by first or second liens on the borrower's primary residence. Construction and land development – Construction and land development consists of loans to construct the borrower's primary or secondary residence or vacant land upon which the owner intends to construct a dwelling at a future date. Consumer – Consumer loans consist of installment loans to finance purchases of vehicles, unsecured home improvements, student loans and revolving lines of credit that can be secured or unsecured, including personal credit cards. Loans and leases outstanding included the following at March 31, 2017 and December 31, 2016:
At March 31, 2017, $75.9 million of total loans and leases were covered under shared-loss agreements with the FDIC, compared to $84.8 million at December 31, 2016. The shared-loss agreements, for their terms, protect us from a substantial portion of the credit and asset quality risk we would otherwise incur. At March 31, 2017, $8.32 billion in noncovered loans with a lendable collateral value of $5.57 billion were used to secure $660.2 million in Federal Home Loan Bank (FHLB) of Atlanta advances, resulting in additional borrowing capacity of $4.91 billion. At December 31, 2016, $8.26 billion in noncovered loans with a lendable collateral value of $5.50 billion were used to secure $660.2 million in FHLB of Atlanta advances, resulting in additional borrowing capacity of $4.84 billion. At March 31, 2017, $2.66 billion in noncovered loans with a lendable collateral value of $1.98 billion were used to secure additional borrowing capacity at the Federal Reserve Bank (FRB). There were no loans used to secure additional borrowing capacity at the FRB at December 31, 2016. Net deferred fees on originated non-PCI loans and leases, including unearned income and unamortized costs, fees, premiums and discounts, were $5.0 million and $6.7 million at March 31, 2017 and December 31, 2016, respectively. The unamortized discount related to purchased non-PCI loans and leases in the Cordia transaction was $3.7 million and $4.2 million at March 31, 2017 and December 31, 2016, respectively. The unamortized discount related to purchased non-PCI loans and leases from the First Citizens Bancorporation, Inc. merger was $24.7 million and $27.4 million at March 31, 2017 and December 31, 2016, respectively. During both the three months ended March 31, 2017 and March 31, 2016, accretion income on non-PCI loans was $3.2 million. During the first quarter of 2017, certain residential mortgage loans totaling $32.5 million were sold, resulting in a gain of $164 thousand. Credit quality indicators Loans and leases are monitored for credit quality on a recurring basis. The credit quality indicators used are dependent on the portfolio segment to which the loan relates. Commercial and noncommercial loans and leases have different credit quality indicators as a result of the unique characteristics of the loan segment being evaluated. The credit quality indicators for non-PCI and PCI commercial loans and leases are developed through a review of individual borrowers on an ongoing basis. Each commercial loan is evaluated annually with more frequent evaluation of more severely criticized loans or leases. The credit quality indicators for non-PCI and PCI noncommercial loans are based on the delinquency status of the borrower. As the borrower becomes more delinquent, the likelihood of loss increases. The indicators represent the rating for loans or leases as of the date presented based on the most recent assessment performed. These credit quality indicators are defined as follows: Pass – A pass rated asset is not adversely classified because it does not display any of the characteristics for adverse classification. Special mention – A special mention asset has potential weaknesses that deserve management’s close attention. If left uncorrected, such potential weaknesses may result in deterioration of the repayment prospects or collateral position at some future date. Special mention assets are not adversely classified and do not warrant adverse classification. Substandard – A substandard asset is inadequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged, if any. Assets classified as substandard generally have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. These assets are characterized by the distinct possibility of loss if the deficiencies are not corrected. Doubtful – An asset classified as doubtful has all the weaknesses inherent in an asset classified substandard with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable on the basis of currently existing facts, conditions and values. Loss – Assets classified as loss are considered uncollectible and of such little value that it is inappropriate to be carried as an asset. This classification is not necessarily equivalent to no potential for recovery or salvage value, but rather that it is not appropriate to defer a full charge-off even though partial recovery may be affected in the future. Ungraded – Ungraded loans represent loans that are not included in the individual credit grading process due to their relatively small balances or borrower type. The majority of ungraded loans at March 31, 2017 and December 31, 2016 relate to business credit cards. Business credit card loans are subject to automatic charge-off when they become 120 days past due in the same manner as unsecured consumer lines of credit. The remaining balance is comprised of a small amount of commercial mortgage, lease financing and other commercial real estate loans. Non-PCI loans and leases outstanding at March 31, 2017 and December 31, 2016 by credit quality indicator are provided below:
PCI loans outstanding at March 31, 2017 and December 31, 2016 by credit quality indicator are provided below:
The aging of the outstanding non-PCI loans and leases, by class, at March 31, 2017 and December 31, 2016 is provided in the table below. The calculation of days past due begins on the day after payment is due and includes all days through which all required interest or principal has not been paid. Loans and leases 30 days or less past due are considered current as various grace periods allow borrowers to make payments within a stated period after the due date and still remain in compliance with the loan agreement.
The recorded investment, by class, in loans and leases on nonaccrual status, and loans and leases greater than 90 days past due and still accruing at March 31, 2017 and December 31, 2016 for non-PCI loans and leases, were as follows:
Purchased credit-impaired loans (PCI) loans The following table relates to PCI loans acquired in the HCB acquisition and summarizes the contractually required payments, which include principal and interest, expected cash flows to be collected, and the fair value of PCI loans at the acquisition date.
The recorded fair values of PCI loans acquired in the HCB acquisition as of the acquisition date were as follows:
The following table provides changes in the carrying value of all purchased credit-impaired loans during the three months ended March 31, 2017 and March 31, 2016:
The carrying value of loans on the cost recovery method was $480 thousand at March 31, 2017 and $498 thousand at December 31, 2016. The cost recovery method is applied to loans when the timing of future cash flows is not reasonably estimable due to borrower nonperformance or uncertainty in the ultimate disposition of the asset. Cash payments from cost recovery loans are 100 percent applied to principal. The recorded investment of PCI loans on nonaccrual status was $1.5 million and $3.5 million at March 31, 2017 and December 31, 2016, respectively. During the three months ended March 31, 2017 and March 31, 2016, accretion income on PCI loans was $19.4 million and $21.4 million, respectively. The following table documents changes to the amount of accretable yield for the first three months of 2017 and 2016.
For PCI loans, improved credit loss expectations generally result in the reclassification of nonaccretable difference to accretable yield. Changes in expected cash flows not related to credit improvements or deterioration do not affect the nonaccretable difference. |
Allowance for Loan and Lease Losses |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance | NOTE E - ALLOWANCE FOR LOAN AND LEASE LOSSES (ALLL) The following tables present the activity in the ALLL for non-PCI loan and lease losses by loan class for the three months ended March 31, 2017 and March 31, 2016:
The following tables present the allowance for non-PCI loan losses and the recorded investment in loans, by loan class, based on impairment method as of March 31, 2017 and December 31, 2016:
The following tables show the activity in the allowance for PCI loan and lease losses by loan class for the three months ended March 31, 2017 and March 31, 2016.
As of March 31, 2017, and December 31, 2016, $275.8 million and $359.7 million, respectively, in PCI loans experienced an adverse change in expected cash flows since the date of acquisition. The corresponding valuation reserve was $10.9 million and $13.8 million, respectively. The following tables show the ending balances of PCI loans and leases and related allowance by class of loans as of March 31, 2017 and December 31, 2016:
The following tables provide information on non-PCI impaired loans and leases, exclusive of loans and leases evaluated collectively as a homogeneous group, as of March 31, 2017 and December 31, 2016 including interest income recognized in the period during which the loans and leases were considered impaired.
The following tables show the average non-PCI impaired loan balance and the interest income recognized by loan class for the three months ended March 31, 2017 and March 31, 2016:
Troubled Debt Restructurings BancShares accounts for certain loan modifications or restructurings as troubled debt restructurings (TDRs). In general, the modification or restructuring of a loan is considered a TDR if, for economic reasons or legal reasons related to a borrower's financial difficulties, a concession is granted to the borrower that creditors would not otherwise grant. Concessions may relate to the contractual interest rate, maturity date, payment structure or other actions. In accordance with GAAP, acquired loans accounted for under ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality, are not initially considered to be TDRs, but can be classified as such if a modification is made subsequent to acquisition. Subsequent modifications of a PCI loan accounted for in a pool that would otherwise meet the definition of a TDR is not reported, or accounted for, as a TDR since pooled PCI loans are excluded from the scope of TDR accounting. The following table provides a summary of total TDRs by accrual status.
The majority of TDRs are included in the special mention, substandard or doubtful grading categories. When a restructured loan subsequently defaults, it is evaluated and downgraded if appropriate. The more severely graded the loan, the lower the estimated expected cash flows and the greater the allowance recorded. TDRs are evaluated individually for impairment through a review of collateral values or analysis of cash flows. The following table shows the accrual status of non-PCI and PCI TDRs.
The following table provides the types of non-PCI TDRs made during the three months ended March 31, 2017 and March 31, 2016, as well as a summary of loans that were modified as a TDR during the twelve month periods ended March 31, 2017 and March 31, 2016 that subsequently defaulted during the three months ended March 31, 2017 and March 31, 2016. BancShares defines payment default as movement of the TDR to nonaccrual status, which is generally 90 days past due for TDRs, foreclosure or charge-off, whichever occurs first.
The following table provides the types of PCI TDRs made during the three months ended March 31, 2017 and March 31, 2016, as well as a summary of loans that were modified as a TDR during the twelve month periods ended March 31, 2017 and March 31, 2016 that subsequently defaulted during the three months ended March 31, 2017 and March 31, 2016.
For the three months ended March 31, 2017 and March 31, 2016, the pre-modification and post-modification outstanding recorded investments of loans modified as TDRs were not materially different. |
Other Real Estate Owned |
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Real Estate Owned [Text Block] | NOTE F - OTHER REAL ESTATE OWNED (OREO) The following table explains changes in other real estate owned during the three months ended March 31, 2017 and March 31, 2016.
At March 31, 2017 and December 31, 2016, BancShares had $15.2 million and $15.0 million, respectively, of foreclosed residential real estate property in OREO. The recorded investment in consumer mortgage loans collateralized by residential real estate property in the process of foreclosure was $21.8 million at both March 31, 2017 and December 31, 2016. |
FDIC Shared-Loss Receivable |
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FDIC Shared-Loss Receivable | FDIC SHARED-LOSS RECEIVABLE AND PAYABLE BancShares completed six FDIC-assisted transactions with shared-loss agreements during the period beginning in 2009 through 2011. Prior to its merger into BancShares, First Citizens Bancorporation, Inc. (Bancorporation) completed three FDIC-assisted transactions with shared-loss agreements: Georgian Bank (acquired in 2009); Williamsburg First National Bank (acquired in 2010); and Atlantic Bank & Trust (acquired in 2011). During the first quarter of 2017, FCB entered into an agreement with the FDIC to terminate the shared-loss agreement for Venture Bank (VB). Under the terms of the agreement, FCB made a payment of $285 thousand to the FDIC as consideration for early termination of the shared-loss agreement. The early termination resulted in an adjustment of $240 thousand to the FDIC shared-loss receivable and a $45 thousand loss on the termination of the shared-loss agreement. In addition to the shared-loss agreement termination for VB, FCB terminated five shared-loss agreements in 2016, including Temecula Valley Bank, Sun American Bank, Williamsburg First National Bank, Atlantic Bank & Trust and Colorado Capital Bank. As of March 31, 2017, shared-loss protection has expired or has been terminated for all non-single family residential loans. Shared-loss protection remains only for $75.9 million of single family residential loans acquired from United Western Bank and Georgian Bank. The following table provides changes in the receivable from the FDIC for the three months ended March 31, 2017 and March 31, 2016.
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Mortgage Servicing Rights |
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Mortgage Servicing Rights [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers and Servicing of Financial Assets [Text Block] | MORTGAGE SERVICING RIGHTS Our portfolio of residential mortgage loans serviced for third parties was $2.55 billion and $2.49 billion as of March 31, 2017 and December 31, 2016, respectively. These loans were originated by BancShares and sold to third parties on a non-recourse basis with servicing rights retained. These retained servicing rights are recorded as a servicing asset and reported in other intangible assets on the Consolidated Balance Sheets. The mortgage servicing rights are initially recorded at fair value and then carried at the lower of amortized cost or fair market value. The activity of the servicing asset for the three months ended March 31, 2017 and 2016 is presented in the following table:
The following table presents the activity in the servicing asset valuation allowance for the three months ended March 31, 2017 and 2016:
Contractually specified mortgage servicing fees, late fees, and ancillary fees earned for the three months ended March 31, 2017 and 2016 were $1.7 million and $1.4 million, respectively, and reported in mortgage income in the Consolidated Statements of Income. The amortization expense related to mortgage servicing rights, included as a reduction of mortgage income in the Consolidated Statements of Income, was $1.4 million and $1.3 million for the three months ended March 31, 2017 and 2016, respectively. Mortgage income included an impairment reversal of $4 thousand for the three months ended March 31, 2017 and an impairment of $1.9 million for the three months ended March 31, 2016. Valuation of mortgage servicing rights is performed using a pooling methodology. Similar loans are pooled together and evaluated on a discounted earnings basis to determine the present value of future earnings. Key economic assumptions used to value mortgage servicing rights as of March 31, 2017 and December 31, 2016 were as follows:
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Repurchase Agreements |
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Repurchase Agreements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase Agreements, Resale Agreements, Securities Borrowed, and Securities Loaned Disclosure [Text Block] | REPURCHASE AGREEMENTS BancShares utilizes securities sold under agreements to repurchase to facilitate the needs of customers and secure short-term funding needs. Repurchase agreements are transactions whereby BancShares offers to sell to a counterparty an undivided interest in an eligible security at an agreed upon purchase price, and which obligates BancShares to repurchase the security on an agreed upon date at an agreed upon repurchase price plus interest at an agreed upon rate. Securities sold under agreements to repurchase are recorded at the amount of cash received in connection with the transaction and are generally reflected as short-term borrowings on the Consolidated Balance Sheets. BancShares monitors collateral levels on a continuous basis and maintains records of each transaction specifically describing the applicable security and the counterparty’s fractional interest in that security, and segregates the security from general assets in accordance with regulations governing custodial holdings of securities. The primary risk with repurchase agreements is market risk associated with the investments securing the transactions, as additional collateral may be required based on fair value changes of the underlying investments. Securities pledged as collateral under repurchase agreements are maintained with safekeeping agents. The carrying value of available for sale investment securities pledged as collateral under repurchase agreements was $769.8 million and $690.8 million at March 31, 2017 and December 31, 2016, respectively. The remaining contractual maturity of the securities sold under agreements to repurchase by class of collateral pledged included in the Consolidated Balance Sheets as of March 31, 2017 and December 31, 2016 is presented in the following tables.
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Estimated Fair Values |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated Fair Values | ESTIMATED FAIR VALUES Fair value estimates are intended to represent the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. Where there is no active market for a financial instrument, BancShares has made estimates using discounted cash flows or other valuation techniques. Inputs to these valuation methods are subjective in nature, involve uncertainties and require significant judgment and therefore cannot be determined with precision. Accordingly, the derived fair value estimates presented below are not necessarily indicative of the amounts BancShares could realize in a current market exchange. ASC 820, Fair Value Measurements and Disclosures, indicates that assets and liabilities are recorded at fair value according to a fair value hierarchy comprised of three levels. The levels are based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. The level within the fair value hierarchy for an asset or liability is based on the highest level of input that is significant to the fair value measurement (with level 1 considered highest and level 3 considered lowest). A brief description of each level follows:
Valuation adjustments, such as those pertaining to counterparty and BancShares' own credit quality and liquidity, may be necessary to ensure that assets and liabilities are recorded at fair value. Credit valuation adjustments are made when market pricing does not accurately reflect the counterparty's credit quality. As determined by BancShares management, liquidity valuation adjustments may be made to the fair value of certain assets to reflect the uncertainty in the pricing and trading of the instruments when recent market transactions for identical or similar instruments are not observed. BancShares management reviews any changes to its valuation methodologies to ensure they are appropriate and justified, and refines valuation methodologies as more market-based data becomes available. Transfers between levels of the fair value hierarchy are recognized at the end of the reporting period. The methodologies used to estimate the fair value of financial assets and financial liabilities are discussed below: Investment securities available for sale. U.S. Treasury, government agency, mortgage-backed securities, municipal securities, corporate bonds and trust preferred securities are generally measured at fair value using a third party pricing service or recent comparable market transactions in similar or identical securities and are classified as level 2 instruments. Equity securities are measured at fair value using observable closing prices and the valuation also considers the amount of market activity by examining the trade volume of each security. Equity securities are classified as Level 1 if they are traded on a heavily active market and as Level 2 if the observable closing price is from a less than active market. Loans held for sale. Certain residential real estate loans are originated to be sold to investors, which are carried at fair value as BancShares elected the fair value option on loans held for sale. The fair value is based on quoted market prices for similar types of loans. Accordingly, the inputs used to calculate fair value of residential real estate loans held for sale are classified as level 2 inputs. Net loans and leases (PCI and Non-PCI). Fair value is estimated based on discounted future cash flows using the current interest rates at which loans with similar terms would be made to borrowers of similar credit quality. An additional valuation adjustment is made for liquidity. The inputs used in the fair value measurements for loans and leases are considered level 3 inputs. FHLB stock. The carrying amount of FHLB stock is a reasonable estimate of fair value as these securities are not readily marketable and are evaluated for impairment based on the ultimate recoverability of the par value. BancShares considers positive and negative evidence, including the profitability and asset quality of the issuer, dividend payment history and recent redemption experience, when determining the ultimate recoverability of the par value. BancShares believes its investment in FHLB stock is ultimately recoverable at par. The inputs used in the fair value measurement for the FHLB stock are considered level 2 inputs. Mortgage servicing rights. Mortgage servicing rights are carried at the lower of amortized cost or market and are, therefore, carried at fair value only when fair value is less than the asset cost. The fair value of mortgage servicing rights is performed using a pooling methodology. Similar loans are pooled together and a model that relies on discount rates, estimates of prepayment rates and the weighted average cost to service the loans is used to determine the fair value. The inputs used in the fair value measurement for mortgage servicing rights are considered level 3 inputs. Deposits. For non-time deposits, carrying value is a reasonable estimate of fair value. The fair value of time deposits is estimated by discounting future cash flows using the interest rates currently offered for deposits of similar remaining maturities. The inputs used in the fair value measurement for deposits are considered level 2 inputs. Long-term obligations. For fixed rate trust preferred securities, the fair values are determined based on recent trades of the actual security if available. For other long-term obligations, fair values are estimated by discounting future cash flows using current interest rates for similar financial instruments. The inputs used in the fair value measurement for long-term obligations are considered level 2 inputs. Payable to the FDIC for shared-loss agreements. The fair value of the payable to the FDIC for shared-loss agreements is determined by the projected cash flows based on expected payments to the FDIC in accordance with the shared-loss agreements. Cash flows are discounted using current discount rates to reflect the timing of the estimated amounts due to the FDIC. The inputs used in the fair value measurement for the payable to the FDIC are considered level 3 inputs. Off-balance-sheet commitments and contingencies. Carrying amounts are reasonable estimates of the fair values for such financial instruments. Carrying amounts include unamortized fee income and, in some cases, reserves for any credit losses from those financial instruments. These amounts are not material to BancShares' financial position. For all other financial assets and financial liabilities, the carrying value is a reasonable estimate of the fair value as of March 31, 2017 and December 31, 2016. The carrying value and fair value for these assets and liabilities are equivalent because they are relatively short term in nature and there is no interest rate or credit risk that would cause the fair value to differ from the carrying value. Cash and due from banks is classified on the fair value hierarchy as level 1. Overnight investments, income earned not collected, short-term borrowings and accrued interest payable are considered level 2. Lastly, the receivable from the FDIC for shared-loss agreements is designated as level 3.
Among BancShares' assets and liabilities, investment securities available for sale, loans held for sale and interest rates swaps accounted for as cash flow hedges are reported at their fair values on a recurring basis. For assets and liabilities carried at fair value on a recurring basis, the following table provides fair value information as of March 31, 2017 and December 31, 2016.
There were no transfers between levels during the three months ended March 31, 2017. Fair Value Option BancShares has elected the fair value option for residential real estate loans held for sale. This election reduces certain timing differences in the Consolidated Statement of Income and better aligns with the management of the portfolio from a business perspective. The following table summarizes the difference between the aggregate fair value and the aggregate unpaid principal balance for residential real estate loans held for sale measured at fair value as of March 31, 2017 and December 31, 2016.
No loans held for sale were 90 or more days past due or on nonaccrual status as of March 31, 2017 or December 31, 2016. The changes in fair value for residential real estate loans held for sale for which the fair value option was elected are recorded as a component of mortgage income on the Consolidated Statements of Income and are included in the table below for the three months ended March 31, 2017 and 2016.
Certain other assets are adjusted to their fair value on a nonrecurring basis, including impaired loans, OREO, and goodwill, which are periodically tested for impairment, and mortgage servicing rights, which are carried at the lower of amortized cost or market. Non-impaired loans held for investment, deposits, short-term borrowings and long-term obligations are not reported at fair value. Impaired loans are deemed to be at fair value if an associated allowance or current period charge-off has been recorded. The value of impaired loans is determined by either collateral valuations or discounted present value of the expected cash flow calculations. Collateral values are determined using appraisals or other third-party value estimates of the subject property with discounts generally between 8 and 12 percent applied for estimated holding and selling costs and other external factors that may impact the marketability of the property. Expected cash flows are determined using expected payment information at the individual loan level, discounted using the effective interest rate. The effective interest rate generally ranges between 2 and 16 percent. OREO is measured and reported at fair value using asset valuations. Asset values are determined using appraisals or other third-party value estimates of the subject property with discounts generally between 8 and 12 percent applied for estimated holding and selling costs and other external factors that may impact the marketability of the property. Changes to the value of the assets between scheduled valuation dates are monitored through continued communication with brokers and monthly reviews by the asset manager assigned to each asset. If there are any significant changes in the market or the subject property, valuations are adjusted or new appraisals ordered to ensure the reported values reflect the most current information. OREO that has been acquired or written down in the current year is deemed to be at fair value and included in the table below. Mortgage servicing rights are carried at the lower of cost or market and are, therefore, carried at fair value only when fair value is less than the amortized asset cost. The fair value of mortgage servicing rights is performed using a pooling methodology. Similar loans are pooled together and a discounted cash flow model, which takes into consideration discount rates, prepayment rates, and the weighted average cost to service the loans, is used to determine the fair value. For financial assets and liabilities carried at fair value on a nonrecurring basis, the following table provides fair value information as of March 31, 2017 and December 31, 2016.
No financial liabilities were carried at fair value on a nonrecurring basis as of March 31, 2017 and December 31, 2016. |
Employee Benefit Plans |
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General Discussion of Pension and Other Postretirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS BancShares sponsors noncontributory defined benefit pension plans for its qualifying employees (BancShares Plan) and former First Citizens Bancorporation, Inc. employees (Bancorporation Plan). Net periodic benefit cost is a component of employee benefits expense. BancShares Plan For the three months ended March 31, 2017 and 2016, the components of net periodic benefit cost are as follows:
Bancorporation Plan For the three months ended March 31, 2017 and 2016, the components of net periodic benefit cost are as follows:
No contributions were made during the three months ended March 31, 2017 to the BancShares or Bancorporation pension plans. BancShares does not expect to make any contributions to either of the defined benefit pension plans during 2017. |
Commitments and Contingencies |
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Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES To meet the financing needs of its customers, BancShares and its subsidiaries have financial instruments with off-balance sheet risk. These financial instruments include commitments to extend credit, standby letters of credit and recourse obligations on mortgage loans sold. These instruments involve elements of credit, interest rate or liquidity risk. Commitments to extend credit are legally binding agreements to lend to customers. Commitments generally have fixed expiration dates or other termination clauses and may require payment of fees. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future liquidity requirements. Established credit standards control the credit risk exposure associated with these commitments. In some cases, BancShares requires that collateral be pledged to secure the commitment, including cash deposits, securities and other assets. At March 31, 2017, BancShares had unused commitments that were $9.03 billion, compared to $8.81 billion at December 31, 2016. Total unfunded commitments relating to investments in affordable housing projects was $61.9 million and $57.1 million at March 31, 2017 and December 31, 2016, respectively, and are included in other liabilities on BancShares' Consolidated Balance Sheets. Affordable housing project investments were $116.7 million and $109.8 million at March 31, 2017 and December 31, 2016, respectively, and are included in other assets on the Consolidated Balance Sheets. Standby letters of credit are commitments guaranteeing performance of a customer to a third party. Those commitments are primarily issued to support public and private borrowing arrangements. To mitigate its risk, BancShares’ follows its credit policies in the issuance of standby letters of credit. At March 31, 2017 and December 31, 2016, BancShares had standby letters of credit amounting to $80.3 million and $83.8 million, respectively. The credit risk related to the issuance of these letters of credit is essentially the same as that involved in extending loans to clients and, therefore, these letters of credit are collateralized when necessary. Pursuant to standard representations and warranties relating to residential mortgage loan sales, contingent obligations exist for various events that may occur following the loan sale. If underwriting or documentation deficiencies are discovered at any point in the life of the loan or if the loan fails to perform per the terms of the loan purchase agreement, typically within 180 days from the date of sale, the investor may require BancShares to repurchase the loan or to repay a portion of the sale proceeds. Other liabilities included reserves of $3.0 million as of March 31, 2017 and December 31, 2016 for estimated losses arising from these standard representation and warranty provisions. BancShares has a receivable from the FDIC totaling $4.0 million and $4.2 million as of March 31, 2017 and December 31, 2016, respectively, for the expected reimbursement of losses on assets covered under various shared-loss agreements. The shared-loss agreements are subject to interpretation by both the FDIC and BancShares, and disagreements may arise regarding coverage of losses, expenses and contingencies and requests for reimbursement may be delayed or disallowed for noncompliance. See Note G for additional information on the receivable from the FDIC regarding the early termination of a shared-loss agreement during the first quarter of 2017. The shared-loss agreements for two FDIC-assisted transactions include provisions related to payments that may be owed to the FDIC at the termination of the agreements (clawback liability). The clawback liability represents a payment by BancShares to the FDIC if actual cumulative losses on acquired covered assets are lower than the cumulative losses originally estimated by the FDIC at the time of acquisition. The clawback liability is estimated by discounting estimated future payments and is recorded in the Consolidated Balance Sheets as a payable to the FDIC under the relevant shared-loss agreements. As of March 31, 2017 and December 31, 2016, the estimated clawback liability was $98.0 million and $97.0 million, respectively. BancShares entered into forward-starting advances with the FHLB of Atlanta in June 2016 to receive $200.0 million of fixed rate long-term funding. There are two advances of $100.0 million each scheduled to fund in June 2018 with maturity dates of June 2026 and 2028. BancShares and various subsidiaries have been named as defendants in legal actions arising from their normal business activities in which damages in various amounts are claimed. Although the amount of any ultimate liability with respect to such matters cannot be determined, in the opinion of management, any such liability will not have a material effect on BancShares’ consolidated financial statements. |
Accumulated Other Comprehensive Income (Loss) |
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Accumulated Other Comprehensive Loss | ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME Accumulated other comprehensive loss included the following as of March 31, 2017 and December 31, 2016:
The following table highlights changes in accumulated other comprehensive (loss) income by component for the three months ended March 31, 2017 and March 31, 2016:
1 All amounts are net of tax. Amounts in parentheses indicate debits. The following table presents the amounts reclassified from accumulated other comprehensive (loss) income and the line item affected in the statement where net income is presented for the three months ended March 31, 2017 and March 31, 2016:
1 Amounts in parentheses indicate debits to profit/loss. |
Accounting Policies and Basis of Presentation Policies (Policies) |
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Reclassification, Policy [Policy Text Block] | Reclassifications In certain instances, amounts reported in prior years' consolidated financial statements have been reclassified to conform to the current financial statement presentation. Such reclassifications had no effect on previously reported shareholders' equity or net income. |
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Use of Estimates, Policy [Policy Text Block] | Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates, and different assumptions in the application of these policies could result in material changes in BancShares' consolidated financial position, the consolidated results of operations or related disclosures. Material estimates that are particularly susceptible to significant change include:
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New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Pronouncements Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) 2017-03, Accounting Changes and Error Corrections (Topic 250) and Investments - Equity Method and Joint Ventures (Topic 323): Amendments to SEC Paragraphs Pursuant to Staff Announcements at the September 22, 2016 and November 17, 2016 EITF Meetings (SEC Update) This ASU adds an SEC paragraph and amends other Topics pursuant to an SEC Staff Announcement that states a registrant should evaluate ASUs that have not yet been adopted, including ASU 2014-09, Revenue from Contracts with Customers (Topic 606), ASU 2016-02, Leases (Topic 842), and ASU 2016-13, Financial Instruments–Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, to determine the appropriate financial statement disclosures about the potential material effects of those ASUs on the financial statements when adopted. If a registrant does not know or cannot reasonably estimate the impact that adoption of the ASUs referenced are expected to have on the financial statements, then in addition to making a statement to that effect, the registrant should consider additional qualitative financial statement disclosures to assist the reader in assessing the significance of the impact the adoption will have on the financial statements, and a comparison to the registrant's current accounting policies. A registrant should describe the status of its process to implement the new standards and the significant matters yet to be addressed. This ASU also addresses the accounting for tax benefits resulting from investments in qualified affordable housing projects where the decision to apply the proportional amortization method of accounting is an accounting policy decision to be applied consistently to all investments that meet the conditions, rather than a decision to be applied to individual investments that qualify for the use of the proportional amortization method. The amendments in this ASU are effective upon issuance. We adopted the guidance effective in the first quarter of 2017. The disclosures required by this ASU are included within the “Recently Issued Accounting Pronouncements” section below. The adoption did not have an impact on our consolidated financial position or consolidated results of operations. FASB ASU 2016-17, Consolidation (Topic 810): Interests Held Through Related Parties That Are Under Common Control This ASU does not change the characteristics of a primary beneficiary in current GAAP; however, it requires that a reporting entity, in determining whether it satisfies the second characteristic of a primary beneficiary, to include all of its direct variable interests in a VIE and, on a proportionate basis, its indirect variable interests in a VIE held through related parties, including related parties that are under common control with the reporting entity. If, after performing that assessment, a reporting entity that is the single decision maker of a VIE concludes that it does not have the characteristics of a primary beneficiary, the amendments continue to require that reporting entity to evaluate whether it and one or more of its related parties under common control, as a group, have the characteristics of a primary beneficiary, then the party within the related party group that is most closely associated with the VIE is the primary beneficiary. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. We adopted the guidance effective in the first quarter of 2017. The adoption did not have an impact on our consolidated financial position or consolidated results of operations. FASB ASU 2016-07, Investments—Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting This ASU eliminates the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. The ASU requires that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor's previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. Therefore, upon qualifying for the equity method of accounting, no retroactive adjustment of the investment is required. Further, the ASU requires that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings, the unrealized gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. The amendments in this ASU are effective for all entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. We adopted the guidance effective in the first quarter of 2017. The adoption did not have any impact on our consolidated financial position or consolidated results of operations. Recently Issued Accounting Pronouncements FASU ASU 2017-01, Business Combinations (Topic 805), Clarifying the Definition of a Business This ASU provides a more robust framework to use in determining when a set of assets and activities is a business, including narrowing the definition of outputs and align it with how outputs are described in Topic 606. This ASU provides a screen to determine when an integrated set of assets and activities (collectively referred to as a "set") is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired or disposed of is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This screen reduces the number of transactions that need to be further evaluated. If the screen is not met, the amendments in this ASU (1) require that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and (2) remove the evaluation of whether a market participant could replace missing elements. The framework includes two sets of criteria to consider that depend on whether a set has outputs. The amendments in this ASU are effective for public business entities for annual periods beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of this standard is not expected to have an impact on our consolidated financial position or results of operation and we will adopt the guidance during the first quarter of 2018. FASB ASU 2017-07, Compensation - Retirement Benefits (Topic 715), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost This ASU requires that an employer report the service cost component in the same line item or line items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. Of the components of net periodic benefit cost, only the service cost component will be eligible for asset capitalization. The amendments in this ASU are effective for public business entities for annual periods beginning after December 15, 2017, including interim periods within those annual periods. Early adoption is permitted as of the beginning of an annual reporting period. The amendments shall be applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement and prospectively, on and after the effective date, for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit in assets. The adoption of this standard is not expected to have a significant impact on our consolidated financial position or results of operation and we will adopt the guidance during the first quarter of 2018. FASB ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment This ASU eliminates Step 2 from the goodwill impairment test. Under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, under the amendments in this ASU, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. This ASU eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative test. This ASU will be effective for BancShares' annual or interim goodwill impairment tests in fiscal year 2020. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of this standard is not expected to have an impact on our consolidated financial position or results of operation and we expect to adopt the guidance for our annual impairment test in fiscal year 2020. FASB ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash The amendments in this ASU require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This ASU does not provide a definition of restricted cash or restricted cash equivalents. This ASU is effective for fiscal years beginning after December 15, 2017 for public business entities, including interim periods within those fiscal years. The adoption of this standard is not expected to have an impact on our Consolidated Statements of Cash Flows. FASB ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory This ASU states that an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory, such as intellectual property or property, plant and equipment, when the transfer occurs. This ASU does not change GAAP for an intra-entity transfer of inventory. Current GAAP prohibits the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2017, including interim reporting periods within those annual reporting periods, and should be applied on a modified retrospective basis. The adoption of this standard is not expected to have an impact on our consolidated financial position or results of operation and we will adopt the guidance during the first quarter of 2018. FASB ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments This ASU addresses the diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments in this ASU provide guidance on (1) debt prepayment or debt extinguishment costs; (2) settlement of zero-coupon debt instruments; (3) contingent consideration payments made after a business combination; (4) proceeds from the settlement of insurance claims; (5) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; (6) distributions received from equity method investees; (7) beneficial interests in securitization transactions; and (8) separately identifiable cash flows and application of the predominance principle. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. The guidance requires application using a retrospective transition method. We will adopt the guidance during the first quarter of 2018. The adoption of this standard is not expected to have a significant impact on our Consolidated Statements of Cash Flows. FASB ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments This ASU eliminates the delayed recognition of the full amount of credit losses until the loss was probable of occurring and instead will reflect an entity's current estimate of all expected credit losses. The amendments in this ASU broaden the information that an entity must consider in developing its expected credit loss estimate for assets measured either collectively or individually. The ASU does not specify a method for measuring expected credit losses and allows an entity to apply methods that reasonably reflect its expectations of the credit loss estimate based on the entity's size, complexity and risk profile. In addition, the disclosures of credit quality indicators in relation to the amortized cost of financing receivables, a current disclosure requirement, are further disaggregated by year of origination. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018. For BancShares, the standard will apply to loans, unfunded loan commitments and debt securities available for sale. We will adopt the guidance by the first quarter of 2020 with a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption. We are currently evaluating the impact the new standard will have on our consolidated financial statement as the final impact will be dependent, among other items, upon the loan portfolio composition and quality at the adoption date, as well as economic conditions and forecasts at that time. FASB ASU 2016-02, Leases (Topic 842) This ASU increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The key difference between existing standards and this ASU is the requirement for lessees to recognize on their balance sheet all lease contracts. An entity may make an accounting election by classification to not recognize leases with terms less than 12 months on their balance sheet. Both a right-of-use asset, representing the right to use the leased asset, and a lease liability, representing the contractual obligation, are required to be recognized on the balance sheet of the lessee at lease commencement. Further, this ASU requires lessees to classify leases as either operating or finance leases, which are substantially similar to the current operating and capital leases classifications. The distinction between these two classifications under the new standard does not relate to balance sheet treatment, but relates to treatment in the statements of income and cash flows. Lessor guidance remains largely unchanged with the exception of how a lessor determines the appropriate lease classification for each lease to better align the lessor guidance with revised lessee classification guidance. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. For BancShares, the impact of this ASU will primarily relate to its accounting and reporting of leases as a lessee. We will adopt during the first quarter of 2019. While we are currently evaluating the impact of the new standard, we expect an increase to the Consolidated Balance Sheets for right-of-use assets and associated lease liabilities, as well as resulting depreciation expense of the right-of-use assets and interest expense of the lease liabilities in the Consolidated Statements of Income, for arrangements previously accounted for as operating leases. FASB ASU 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities This ASU addresses certain aspects of recognition, measurement, presentation and disclosure of certain financial instruments. The amendments in this ASU (1) require equity investments to be measured at fair value with changes in fair value recognized in net income; (2) simplify the impairment assessment of equity investments without a readily determinable fair value; (3) eliminate the requirement to disclose the method(s) and significant assumptions used to estimate the fair value for financial instruments measured at amortized cost on the balance sheet; (4) require public business entities to use exit price notion, rather than entry prices, when measuring fair value of financial instruments for disclosure purposes; (5) require separate presentation of financial assets and financial liabilities by measurement category and form of financial assets on the balance sheet or the accompanying notes to the financial statements; (6) require separate presentation in other comprehensive income of the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the organization has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; and (7) state that a valuation allowance on deferred tax assets related to available-for-sale securities should be evaluated in combination with other deferred tax assets. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The ASU only permits early adoption of the instrument-specific credit risk provision. We will adopt during the first quarter of 2018 with a cumulative-effect adjustment from accumulated other comprehensive income (AOCI) to retained earnings as of the beginning of the year of adoption. We are currently evaluating the impact the new standard will have on our consolidated financial statements. The cumulative-effect adjustment will be impacted by the equity securities portfolio composition and valuation at the date of adoption. FASB ASU 2014-09, Revenue from Contracts with Customers (Topic 606) In May 2014, the FASB issued a standard on the recognition of revenue from contracts with customers with the core principle being for companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services. The new standard also results in enhanced disclosures about revenue, provides guidance for transactions that were not previously addressed comprehensively and improves guidance for multiple-element arrangements. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations, to improve the operability and understandability of the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, to clarify guidance for identifying performance obligations and licensing implementation. In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, to clarify and improve the guidance for certain aspects of Topic 606. In December 2016, the FASB issued ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers, to clarify guidance for certain aspects of Topic 606. Per ASU 2015-14, Deferral of the Effective Date, this guidance was deferred and is effective for fiscal periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Early adoption is permitted for fiscal periods beginning after December 15, 2016. Our revenue is comprised of net interest income on financial assets and liabilities, which is explicitly excluded from the scope of the new guidance, and noninterest income. The contracts that are in scope of the guidance are primarily related to service charges on deposit accounts, cardholder and merchant income, wealth advisory services income, other service charges and fees, sales of other real estate, insurance commissions and miscellaneous fees. We continue to evaluate the impact of the new standard on our noninterest income and on our presentation and disclosures. We expect to adopt the ASU during the first quarter of 2018 with a cumulative-effect adjustment to opening retained earnings and the modified retrospective approach will likely be used. |
Business Combinations Business Combinations (Tables) |
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Investments (Tables) |
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aggregate Values And Unrealized Gains And Losses Of Investment Securities | The amortized cost and fair value of investment securities classified as available for sale and held to maturity at March 31, 2017 and December 31, 2016, are as follows:
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Investment Securities Maturity Information | The following table provides the amortized cost and fair value by contractual maturity. Expected maturities will differ from contractual maturities on certain securities because borrowers and issuers may have the right to call or prepay obligations with or without prepayment penalties. Repayments of mortgage-backed securities are dependent on the repayments of the underlying loan balances. Equity securities do not have a stated maturity date.
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Securities Gains (Losses) | For each period presented, realized securities gains (losses) included the following:
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Investment Securities With Unrealized Losses | The following table provides information regarding securities with unrealized losses as of March 31, 2017 and December 31, 2016.
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Loans and Leases (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans and Leases Receivable Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans And Leases Outstanding | Loans and leases outstanding included the following at March 31, 2017 and December 31, 2016:
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Composition Of The Loans And Leases Outstanding By Credit Quality Indicator | Non-PCI loans and leases outstanding at March 31, 2017 and December 31, 2016 by credit quality indicator are provided below:
PCI loans outstanding at March 31, 2017 and December 31, 2016 by credit quality indicator are provided below:
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Aging Of The Outstanding Loans And Leases By Class Excluding Loans Impaired At Acquisition Date | The aging of the outstanding non-PCI loans and leases, by class, at March 31, 2017 and December 31, 2016 is provided in the table below. The calculation of days past due begins on the day after payment is due and includes all days through which all required interest or principal has not been paid. Loans and leases 30 days or less past due are considered current as various grace periods allow borrowers to make payments within a stated period after the due date and still remain in compliance with the loan agreement.
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Recorded Investment, By Class, In Loans And Leases On Nonaccrual Status And Loans And Leases Greater Than 90 Days Past Due And Still Accruing | The recorded investment, by class, in loans and leases on nonaccrual status, and loans and leases greater than 90 days past due and still accruing at March 31, 2017 and December 31, 2016 for non-PCI loans and leases, were as follows:
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Schedule of Contractually Required Payments Including Principal and Interest Expected Cash Flows to be Collected and Fair Values [Table Text Block] | The following table relates to PCI loans acquired in the HCB acquisition and summarizes the contractually required payments, which include principal and interest, expected cash flows to be collected, and the fair value of PCI loans at the acquisition date.
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Changes In Carrying Value Of PCI Loans | The recorded fair values of PCI loans acquired in the HCB acquisition as of the acquisition date were as follows:
The following table provides changes in the carrying value of all purchased credit-impaired loans during the three months ended March 31, 2017 and March 31, 2016:
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Changes in Carrying Value of Accretable Yield for PCI Loans | The following table documents changes to the amount of accretable yield for the first three months of 2017 and 2016.
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Allowance for Loan and Lease Losses (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Loan and Lease Losses | The following tables present the activity in the ALLL for non-PCI loan and lease losses by loan class for the three months ended March 31, 2017 and March 31, 2016:
The following tables provide information on non-PCI impaired loans and leases, exclusive of loans and leases evaluated collectively as a homogeneous group, as of March 31, 2017 and December 31, 2016 including interest income recognized in the period during which the loans and leases were considered impaired.
The following tables show the average non-PCI impaired loan balance and the interest income recognized by loan class for the three months ended March 31, 2017 and March 31, 2016:
The following tables show the activity in the allowance for PCI loan and lease losses by loan class for the three months ended March 31, 2017 and March 31, 2016.
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Allocation of Allowance for Loan and Lease Losses | The following tables show the ending balances of PCI loans and leases and related allowance by class of loans as of March 31, 2017 and December 31, 2016:
The following tables present the allowance for non-PCI loan losses and the recorded investment in loans, by loan class, based on impairment method as of March 31, 2017 and December 31, 2016:
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Troubled Debt Restructurings on Financing Receivables | The following table provides a summary of total TDRs by accrual status.
The majority of TDRs are included in the special mention, substandard or doubtful grading categories. When a restructured loan subsequently defaults, it is evaluated and downgraded if appropriate. The more severely graded the loan, the lower the estimated expected cash flows and the greater the allowance recorded. TDRs are evaluated individually for impairment through a review of collateral values or analysis of cash flows. The following table shows the accrual status of non-PCI and PCI TDRs.
The following table provides the types of non-PCI TDRs made during the three months ended March 31, 2017 and March 31, 2016, as well as a summary of loans that were modified as a TDR during the twelve month periods ended March 31, 2017 and March 31, 2016 that subsequently defaulted during the three months ended March 31, 2017 and March 31, 2016. BancShares defines payment default as movement of the TDR to nonaccrual status, which is generally 90 days past due for TDRs, foreclosure or charge-off, whichever occurs first.
The following table provides the types of PCI TDRs made during the three months ended March 31, 2017 and March 31, 2016, as well as a summary of loans that were modified as a TDR during the twelve month periods ended March 31, 2017 and March 31, 2016 that subsequently defaulted during the three months ended March 31, 2017 and March 31, 2016.
For the three months ended March 31, 2017 and March 31, 2016, the pre-modification and post-modification outstanding recorded investments of loans modified as TDRs were not materially different. |
Other Real Estate Owned (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Banking and Thrift [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in other real estate owned | The following table explains changes in other real estate owned during the three months ended March 31, 2017 and March 31, 2016.
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FDIC Shared-Loss Receivable (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FDIC Shared-Loss Receivable [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Receivable From FDIC | The following table provides changes in the receivable from the FDIC for the three months ended March 31, 2017 and March 31, 2016.
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Mortgage Servicing Rights (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage Servicing Rights [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage servicing rights | The activity of the servicing asset for the three months ended March 31, 2017 and 2016 is presented in the following table:
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Mortgage servicing rights valuation allowance | The following table presents the activity in the servicing asset valuation allowance for the three months ended March 31, 2017 and 2016:
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Mortgage servicing rights economic assumptions | Valuation of mortgage servicing rights is performed using a pooling methodology. Similar loans are pooled together and evaluated on a discounted earnings basis to determine the present value of future earnings. Key economic assumptions used to value mortgage servicing rights as of March 31, 2017 and December 31, 2016 were as follows:
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Repurchase Agreements (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase Agreements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Repurchase Agreements | The remaining contractual maturity of the securities sold under agreements to repurchase by class of collateral pledged included in the Consolidated Balance Sheets as of March 31, 2017 and December 31, 2016 is presented in the following tables.
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Estimated Fair Values (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated Fair Values For Certain Financial Assets And Financial Liabilities | For all other financial assets and financial liabilities, the carrying value is a reasonable estimate of the fair value as of March 31, 2017 and December 31, 2016. The carrying value and fair value for these assets and liabilities are equivalent because they are relatively short term in nature and there is no interest rate or credit risk that would cause the fair value to differ from the carrying value. Cash and due from banks is classified on the fair value hierarchy as level 1. Overnight investments, income earned not collected, short-term borrowings and accrued interest payable are considered level 2. Lastly, the receivable from the FDIC for shared-loss agreements is designated as level 3.
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Assets And Liabilities Carried At Fair Value On A Recurring Basis | For assets and liabilities carried at fair value on a recurring basis, the following table provides fair value information as of March 31, 2017 and December 31, 2016.
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Fair Value Option | The following table summarizes the difference between the aggregate fair value and the aggregate unpaid principal balance for residential real estate loans held for sale measured at fair value as of March 31, 2017 and December 31, 2016.
No loans held for sale were 90 or more days past due or on nonaccrual status as of March 31, 2017 or December 31, 2016. The changes in fair value for residential real estate loans held for sale for which the fair value option was elected are recorded as a component of mortgage income on the Consolidated Statements of Income and are included in the table below for the three months ended March 31, 2017 and 2016.
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Assets And Liabilities Carried At Fair Value On A Nonrecurring Basis | For financial assets and liabilities carried at fair value on a nonrecurring basis, the following table provides fair value information as of March 31, 2017 and December 31, 2016.
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Employee Benefit Plans (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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BancShares Plan | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Benefit Costs | BancShares Plan For the three months ended March 31, 2017 and 2016, the components of net periodic benefit cost are as follows:
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Bancorporation Plan | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Benefit Costs | Bancorporation Plan For the three months ended March 31, 2017 and 2016, the components of net periodic benefit cost are as follows:
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Accumulated Other Comprehensive Income (Loss) (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Accumulated Other Comprehensive Income (Loss) | Accumulated other comprehensive loss included the following as of March 31, 2017 and December 31, 2016:
The following table highlights changes in accumulated other comprehensive (loss) income by component for the three months ended March 31, 2017 and March 31, 2016:
1 All amounts are net of tax. |
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Reclassification out of Accumulated Other Comprehensive Income |
1 Amounts in parentheses indicate debits to profit/loss. |
Accounting Policies and Basis of Presentation Accounting Policies and Basis of Presentation (Recently Adopted Accounting Standards) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Gain on acquisitions | $ 12,017 | $ 1,704 |
Business Combinations (Loans Acquired) (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Jan. 13, 2017 |
Mar. 11, 2016 |
---|---|---|---|
Business Acquisition [Line Items] | |||
PCI loans and leases | $ 85,149 | $ 85,149 | $ 35,416 |
Commercial | |||
Business Acquisition [Line Items] | |||
PCI loans and leases | 54,976 | ||
Commercial | Construction and land development | |||
Business Acquisition [Line Items] | |||
PCI loans and leases | 7,061 | ||
Commercial | Mortgage | |||
Business Acquisition [Line Items] | |||
PCI loans and leases | 21,836 | ||
Commercial | Other commercial real estate | |||
Business Acquisition [Line Items] | |||
PCI loans and leases | 6,404 | ||
Commercial | Commercial and industrial | |||
Business Acquisition [Line Items] | |||
PCI loans and leases | 19,675 | ||
Noncommercial | |||
Business Acquisition [Line Items] | |||
PCI loans and leases | 30,173 | ||
Noncommercial | Mortgage | |||
Business Acquisition [Line Items] | |||
PCI loans and leases | 25,857 | ||
Noncommercial | Consumer | |||
Business Acquisition [Line Items] | |||
PCI loans and leases | $ 882 |
Investments (Narrative) (Details) |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2017
USD ($)
investments
|
Mar. 31, 2016
USD ($)
|
Dec. 31, 2016
USD ($)
|
|
Investments [Abstract] | |||
Securities gains (losses) | $ (24,000) | $ 4,628,000 | |
Unrealized Losses Related to Marketability of Securities or Issuer's Ability to Honor Redemption Obligations | 0 | $ 0 | |
Fair Value, 12 months or more in unrealized loss position | 361,488,000 | 362,351,000 | |
Unrealized Losses, Greater than 12 months | $ 4,569,000 | 4,689,000 | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | investments | 52 | ||
Investment value deemed to be OTTI | $ 0 | $ 0 | |
Investment securities, aggregate carrying value, pledged as collateral | $ 5,010,000,000 | $ 4,550,000,000 |
Investments (Securities Gains (Losses)) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Investments [Abstract] | ||
Gross gains on sales of investment securities available for sale | $ 3 | $ 4,933 |
Gross losses on sales of investment securities available for sale | (27) | (305) |
Total securities gains (losses) | $ (24) | $ 4,628 |
Loans and Leases (Changes In Carrying Amount Of Accretable Yield) (Details) - USD ($) $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Loans and Leases Receivable Disclosure [Abstract] | ||||
Accretable yield | $ 341,474 | $ 342,957 | $ 335,074 | $ 343,856 |
Additions from acquisitions | 16,653 | 6,176 | ||
Accretion | (19,351) | (21,398) | ||
Reclassifications from nonaccretable difference | 11,277 | 9,905 | ||
Changes in expected cash flows that do not affect nonaccretable difference | $ (2,179) | $ 4,418 |
Loans and Leases Loans and Leases (Schedule of Contractually Required Payments Including Principal and Interest, Expected Cash Flows to be Collected and Fair Values) (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Jan. 13, 2017 |
Mar. 11, 2016 |
---|---|---|---|
Loans and Leases Receivable Disclosure [Abstract] | |||
Contractually required payments | $ 111,250 | ||
Cash flows expected to be collected | 101,802 | ||
PCI loans and leases | $ 85,149 | $ 85,149 | $ 35,416 |
Other Real Estate Owned (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Dec. 31, 2016 |
|
Real Estate Properties [Line Items] | |||
Mortgage Loans in Process of Foreclosure, Amount | $ 21,800 | $ 21,782 | |
Covered | |||
Beginning balance | 472 | $ 6,817 | |
Additions | 0 | 3,936 | |
Sales | (71) | (523) | |
Writedowns | (52) | (496) | |
Ending balance | 349 | 9,734 | |
Noncovered | |||
Beginning balance | 60,759 | 58,742 | |
Additions | 5,822 | 6,044 | |
Sales | (9,048) | (7,547) | |
Writedowns | (1,391) | (2,235) | |
Ending balance | 56,142 | 55,334 | |
Total | |||
Beginning balance | 61,231 | 65,559 | |
Additions | 5,822 | 9,980 | |
Sales | (9,119) | (8,070) | |
Writedowns | (1,443) | (2,731) | |
Ending balance | 56,491 | 65,068 | |
Mortgage | |||
Total | |||
Beginning balance | 15,000 | ||
Ending balance | $ 15,200 | ||
North Milwaukee State Bank | |||
Covered | |||
Additions | 0 | ||
Noncovered | |||
Additions | 330 | ||
Total | |||
Additions | $ 330 |
FDIC Shared-Loss Receivable (Changes in Receivable from FDIC) (Details) - USD ($) $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Receivable From FDIC For Shared-Loss Agreements [Roll Forward] | ||||
Accretion of discounts and premiums, net | $ (600) | $ (2,375) | ||
Receipt of payments from FDIC | 2,760 | 9,871 | ||
Post-acquisition and other adjustments, net | (2,591) | (4,076) | ||
Termination of FDIC shared-loss agreements | 240 | 0 | ||
FDIC shared-loss receivable | $ 3,981 | $ 7,474 | $ 4,172 | $ 4,054 |
FDIC Shared-Loss Receivable FDIC Shared-Loss Receivable (Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Dec. 31, 2016 |
|
FDIC Shared-Loss Receivable [Abstract] | |||
Net payment to the FDIC for termination of shared-loss agreements | $ 285 | $ 0 | |
Termination of FDIC shared-loss agreements | 240 | 0 | |
Loss on termination of FDIC share-loss agreements | (45) | 0 | |
FDIC shared-loss payable | 98,013 | $ 97,008 | |
Net Impact from FDIC shared-loss termination | (45) | $ 0 | |
Loans and Leases Receivable, Gross, Carrying Amount, Covered | $ 75,900 |
Mortgage Servicing Rights (MSR Carrying Value) ((Details) - USD ($) $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Servicing Asset at Amortized Cost [Line Items] | ||||
Mortgage servicing rights | $ 20,771 | $ 17,186 | $ 20,415 | $ 19,351 |
Amortization of Mortgage Servicing Rights (MSRs) | (1,350) | (1,268) | ||
Servicing Asset at Amortized Cost, Additions | 1,702 | 977 | ||
Valuation allowance (provision) reversal | $ 4 | $ (1,874) |
Mortgage Servicing Rights (Valuation allowance) (Details) - USD ($) $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Valuation Allowance for Impairment of Recognized Servicing Assets [Line Items] | ||||
Valuation allowance | $ 0 | $ 1,969 | $ 4 | $ 95 |
Valuation allowance provision (reversal) | $ (4) | $ 1,874 |
Mortgage Servicing Rights (Economic Assumptions) (Details) - $ / loans |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Servicing Asset Key Economic Assumptions [Line Items] | ||
Weighted average constant prepayment rate | 9.82% | 10.42% |
Weighted average cost to service a loan | 63.84 | 62.75 |
Conventional fixed loans | ||
Servicing Asset Key Economic Assumptions [Line Items] | ||
Discount rate | 9.39% | 9.45% |
All loans excluding conventional fixed loans | ||
Servicing Asset Key Economic Assumptions [Line Items] | ||
Discount rate | 10.39% | 10.45% |
Mortgage Servicing Rights (Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Dec. 31, 2016 |
|
Mortgage Servicing Rights [Abstract] | |||
Residential Mortgage Loans Serviced | $ 2,550,000 | $ 2,490,000 | |
Contractually Specified Servicing Fees, Late Fees, and Ancillary Fees Earned in Exchange for Servicing Financial Assets | 1,700 | $ 1,400 | |
Amortization of Mortgage Servicing Rights (MSRs) | 1,350 | 1,268 | |
Valuation allowance provision (reversal) | $ (4) | $ 1,874 |
Estimated Fair Values Estimated Fair Values (Fair Value Option) (Details) - Loans Held For Sale - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Dec. 31, 2016 |
|
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Gains (Losses) From Fair Value Changes | $ 3,161 | $ 763 | |
Fair Value Of Items For Which Fair Value Option Was Elected Assets | 49,952 | $ 74,401 | |
Aggregate Unpaid Principal Balance Of Items For Which Fair Value Option Was Elected Assets | 48,283 | 75,893 | |
Fair Value Option Aggregate Difference Assets | $ 1,669 | $ (1,492) |
Employee Benefit Plans (Components Of Pension Expense) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
BancShares Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | $ 3,376 | $ 3,220 |
Interest cost | 7,380 | 7,180 |
Expected return on assets | (10,698) | (9,159) |
Amortization of prior service cost | 52 | 52 |
Amortization of net actuarial loss | 2,234 | 1,600 |
Total pension expense | 2,344 | 2,893 |
Bancorporation Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | 671 | 650 |
Interest cost | 1,683 | 1,675 |
Expected return on assets | (2,796) | (2,779) |
Amortization of net actuarial loss | 214 | 0 |
Total pension expense | $ (228) | $ (454) |
Employee Benefit Plans (Narrative) (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2017
USD ($)
| |
BancShares Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Contributions by Employer | $ 0.0 |
Bancorporation Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Contributions by Employer | $ 0.0 |
Accumulated Other Comprehensive Income (Loss) (Components of AOCI) (Details) - USD ($) $ in Thousands |
3 Months Ended | ||||
---|---|---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | $ (135,192) | $ (64,440) | |||
Other comprehensive loss before reclassifications | 22,677 | 42,454 | |||
Amounts reclassified from accumulated other comprehensive income (loss) | 1,574 | (1,838) | |||
Net current period other comprehensive (loss) income | 24,251 | 40,616 | |||
Ending balance | (110,941) | (23,824) | |||
Unrealized Loss on Cash Flow Hedges | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | [1] | 0 | (892) | ||
Other comprehensive loss before reclassifications | [1] | 0 | 437 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | [1] | 0 | 0 | ||
Net current period other comprehensive (loss) income | [1] | 0 | 437 | ||
Ending balance | [1] | 0 | (455) | ||
Unrealized Gains on Investment Securities Available for Sale | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | [1] | (45,875) | (15,125) | ||
Other comprehensive loss before reclassifications | [1] | 22,677 | 42,017 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | [1] | 15 | (2,858) | ||
Net current period other comprehensive (loss) income | [1] | 22,692 | 39,159 | ||
Ending balance | [1] | (23,183) | 24,034 | ||
Defined Benefit Pension Items | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | [1] | (89,317) | (48,423) | ||
Other comprehensive loss before reclassifications | [1] | 0 | 0 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | [1] | 1,559 | 1,020 | ||
Net current period other comprehensive (loss) income | [1] | 1,559 | 1,020 | ||
Ending balance | [1] | $ (87,758) | $ (47,403) | ||
|
Accumulated Other Comprehensive Income (Loss) (Reclassifications out of AOCI) (Details) - USD ($) $ in Thousands |
3 Months Ended | ||||
---|---|---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Unrealized gains and losses on available for sale securities reclassified from AOCI before tax | $ (24) | $ 4,628 | |||
Amortization of actuarial losses and prior service cost | (2,234) | (1,600) | |||
Total before taxes | (2,500) | (1,652) | |||
Amounts reclassified from accumulated other comprehensive income, net of tax | 1,574 | (1,838) | |||
Unrealized gains and losses on available for sale securities reclassified from AOCI tax | 9 | (1,770) | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | (15) | 2,858 | |||
Other Comprehensive (Income) Loss, Amortization Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Prior Service Cost (Credit), before Tax | (52) | (52) | |||
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, Tax | 941 | 632 | |||
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, Net of Tax | (1,559) | (1,020) | |||
Unrealized Loss on Cash Flow Hedges | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Amounts reclassified from accumulated other comprehensive income, net of tax | [1] | 0 | 0 | ||
Unrealized Gains on Investment Securities Available for Sale | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Amounts reclassified from accumulated other comprehensive income, net of tax | [1] | 15 | (2,858) | ||
Defined Benefit Pension Items | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Amounts reclassified from accumulated other comprehensive income, net of tax | [1] | $ 1,559 | $ 1,020 | ||
|
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