x | Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
¨ | Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Texas | 20-8948381 | ||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||
2200 Post Oak Blvd. Houston, Texas | 77056 | ||
(Address of principal executive offices) | (Zip Code) | ||
(205) 297-3000 | |||
(Registrant’s telephone number, including area code) | |||
Not Applicable | |||
(Former name or former address, if changed since last report) |
Large accelerated filer o | Accelerated filer o | Non-accelerated filer þ (Do not check if a smaller reporting company) | |||
Smaller reporting company o | Emerging growth company o |
Class | Outstanding as of October 25, 2019 | |
Common Stock (par value $0.01 per share) | 222,963,891 shares |
Page | ||
AFS | Available For Sale |
ASC | Accounting Standards Codification |
ASU | Accounting Standards Update |
Basel III | Global regulatory framework developed by the Basel Committee on Banking Supervision |
Bank | BBVA USA |
BBVA | Banco Bilbao Vizcaya Argentaria, S.A. |
BBVA Group | BBVA and its consolidated subsidiaries |
BOLI | Bank Owned Life Insurance |
BSI | BBVA Securities Inc. |
Cash Flow Hedge | A hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability |
CD | Certificate of Deposit and/or time deposits |
CET1 | Common Equity Tier 1 |
CET1 Risk-Based Capital Ratio | Ratio of Common Equity Tier 1 capital to risk-weighted assets |
CFPB | Consumer Financial Protection Bureau |
Company | BBVA USA Bancshares, Inc. and its subsidiaries |
CRA | Community Reinvestment Act |
EGRRCPA | Economic Growth Regulatory Relief and Consumer Protection Act |
ERM | Enterprise Risk Management |
EVE | Economic Value of Equity |
Exchange Act | Securities and Exchange Act of 1934, as amended |
Fair Value Hedge | A hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment |
FASB | Financial Accounting Standards Board |
FBO Tailoring Proposals | Federal banking agencies proposed rules that would adjust the thresholds at which certain enhanced prudential standards and Basel III capital and liquidity requirements apply to FBOs and the U.S. IHCs of FBOs pursuant to the EGRRCPA |
FDIC | Federal Deposit Insurance Corporation |
Federal Reserve Board | Board of Governors of the Federal Reserve System |
FHC | Financial holding company |
FHLB | Federal Home Loan Bank |
FICO | Fair Isaac Corporation |
Fitch | Fitch Ratings |
FNMA | Federal National Mortgage Association |
HTM | Held To Maturity |
IHC | Top-tier U.S. intermediate holding company |
Large FBO | Foreign Banking Organization with $100 billion or more in global total consolidated assets |
LCR | Liquidity Coverage Ratio |
Leverage Ratio | Ratio of Tier 1 capital to quarterly average on-balance sheet assets |
Moody's | Moody's Investor Services, Inc. |
MRA | Master Repurchase Agreement |
MSR | Mortgage Servicing Rights |
OREO | Other Real Estate Owned |
OTTI | Other-Than-Temporary Impairment |
OIS | Overnight Index Swap |
Parent | BBVA USA Bancshares, Inc. |
Potential Problem Loans | Commercial loans rated substandard or below, which do not meet the definition of nonaccrual, TDR, or 90 days past due and still accruing |
Resolution Plan Proposal | Federal Reserve Board and FDIC proposed rule that would reduce or eliminate resolution planning requirements for institutions that fall into certain risk-based categories |
SBA | Small Business Administration |
SBIC | Small Business Investment Company |
SEC | Securities and Exchange Commission |
Series A Preferred Stock | Floating Non-Cumulative Perpetual Preferred Stock, Series A |
SOFR | Secured Overnight Financing Rate |
S&P | Standard and Poor's Rating Services |
Tax Cuts and Jobs Act | H.R. 1, formerly known as the Tax Cuts and Jobs Act of 2017 |
TBA | To be announced |
TDR | Troubled Debt Restructuring |
Tier 1 Risk-Based Capital Ratio | Ratio of Tier 1 capital to risk-weighted assets |
Total Risk-Based Capital Ratio | Ratio of Total capital (the sum of Tier 1 capital and Tier 2 capital) to risk-weighted assets |
U.S. | United States of America |
U.S. Treasury | United States Department of the Treasury |
U.S. GAAP | Accounting principles generally accepted in the U.S. |
• | national, regional and local economic conditions may be less favorable than expected, resulting in, among other things, increased charge-offs of loans, higher provisions for credit losses and/or reduced demand for the Company's services; |
• | disruptions to the credit and financial markets, either nationally or globally; |
• | decline in real estate values or overall economic weakness could also have an adverse impact upon the value of real estate or other assets which the Company owns as a result of foreclosing a loan and its ability to realize value on such assets; |
• | legislative, regulatory or accounting changes, which may adversely affect our business and/or competitive position, impose additional costs on the Company or cause us to change our business practices; |
• | the fiscal and monetary policies of the federal government and its agencies; |
• | the impact of consumer protection regulations, including the CFPB's residential mortgage and other regulations, which could adversely affect the Company's business, financial condition or results of operations; |
• | the failure to satisfy capital adequacy and liquidity guidelines applicable to the Company; |
• | volatile or declining oil prices, which could have a negative impact on the economies and real estate markets of states such as Texas, resulting in, among other things, higher delinquencies and increased charge-offs in the energy lending portfolio as well as other commercial and consumer loan portfolios indirectly impacted by declining oil prices; |
• | a failure by the Company to effectively manage the risks the Company faces, including credit, operational and cyber security risks; |
• | failure to control concentration risk such as loan type, industry segment, borrower type or location of the borrower or collateral; |
• | changes in the creditworthiness of customers; |
• | downgrades to the Company's credit ratings; |
• | changes in interest rates which could affect interest rate spreads and net interest income; |
• | costs and effects of litigation, regulatory investigations, examinations or similar matters; |
• | disruptions in the Company's ability to access capital markets, which may adversely affect its capital resources and liquidity; |
• | increased loan losses or impairment of goodwill; |
• | the Company's heavy reliance on communications and information systems to conduct its business and reliance on third parties and affiliates to provide key components of its business infrastructure, any disruptions of which could interrupt the Company's operations or increase the costs of doing business; |
• | negative public opinion, which could damage the Company's reputation and adversely impact business and revenues; |
• | the Company depends on the expertise of key personnel, and if these individuals leave or change their roles without effective replacements, operations may suffer; |
• | the Company's financial reporting controls and procedures may not prevent or detect all errors or fraud; |
• | the Company is subject to certain risks related to originating and selling mortgages. It may be required to repurchase mortgage loans or indemnify mortgage loan purchases as a result of breaches of representations and warranties, borrower fraud or certain breaches of its servicing agreements, and this could harm the Company's liquidity, results of operations and financial condition; |
• | increased pressures from competitors (both banks and non-banks) and/or an inability by the Company to remain competitive in the financial services industry, particularly in the markets which the Company serves, and keep pace with technological changes; |
• | unpredictable natural or other disasters, which could impact the Company's customers or operations; |
• | a loss of customer deposits, which could increase the Company's funding costs; |
• | the Company's dependence on the accuracy and completeness of information about clients and counterparties; |
• | changes in the Company's accounting policies or in accounting standards which could materially affect how the Company reports financial results and condition; |
• | the Company has in the past and may in the future pursue acquisitions, which could affect costs and from which the Company may not be able to realize anticipated benefits; and |
• | the Company may not be able to hire or retain additional qualified personnel and recruiting and compensation costs may increase as a result of turnover, both of which may increase costs and reduce profitability and may adversely impact the Company's ability to implement the Company's business strategies. |
Item 1. | Financial Statements (Unaudited) |
BBVA USA BANCSHARES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | |||||||
September 30, 2019 | December 31, 2018 | ||||||
(In Thousands) | |||||||
Assets: | |||||||
Cash and due from banks | $ | 1,117,458 | $ | 1,217,319 | |||
Federal funds sold, securities purchased under agreements to resell and interest bearing deposits | 5,356,141 | 2,115,307 | |||||
Cash and cash equivalents | 6,473,599 | 3,332,626 | |||||
Trading account assets | 564,000 | 237,656 | |||||
Debt securities available for sale | 7,612,590 | 10,981,216 | |||||
Debt securities held to maturity (fair value of $6,514,496 and $2,925,420 at September 30, 2019 and December 31, 2018, respectively) | 6,334,634 | 2,885,613 | |||||
Loans held for sale, at fair value | 134,314 | 68,766 | |||||
Loans | 63,320,571 | 65,186,554 | |||||
Allowance for loan losses | (942,191 | ) | (885,242 | ) | |||
Net loans | 62,378,380 | 64,301,312 | |||||
Premises and equipment, net | 1,085,635 | 1,152,958 | |||||
Bank owned life insurance | 746,819 | 736,171 | |||||
Goodwill | 4,983,296 | 4,983,296 | |||||
Other assets | 2,600,820 | 2,267,560 | |||||
Total assets | $ | 92,914,087 | $ | 90,947,174 | |||
Liabilities: | |||||||
Deposits: | |||||||
Noninterest bearing | $ | 21,019,303 | $ | 20,183,876 | |||
Interest bearing | 52,550,139 | 51,984,111 | |||||
Total deposits | 73,569,442 | 72,167,987 | |||||
FHLB and other borrowings | 3,709,949 | 3,987,590 | |||||
Federal funds purchased and securities sold under agreements to repurchase | 117,421 | 102,275 | |||||
Other short-term borrowings | 45 | — | |||||
Accrued expenses and other liabilities | 1,415,612 | 1,176,793 | |||||
Total liabilities | 78,812,469 | 77,434,645 | |||||
Shareholder’s Equity: | |||||||
Series A Preferred stock — $0.01 par value, liquidation preference $200,000 per share | |||||||
Authorized — 30,000,000 shares | |||||||
Issued — 1,150 shares at both September 30, 2019 and December 31, 2018 | 229,475 | 229,475 | |||||
Common stock — $0.01 par value: | |||||||
Authorized — 300,000,000 shares | |||||||
Issued — 222,963,891 and 222,950,751 shares at September 30, 2019 and December 31, 2018, respectively | 2,230 | 2,230 | |||||
Surplus | 14,359,966 | 14,545,849 | |||||
Accumulated deficit | (585,859 | ) | (1,107,198 | ) | |||
Accumulated other comprehensive income (loss) | 66,009 | (186,848 | ) | ||||
Total BBVA USA Bancshares, Inc. shareholder’s equity | 14,071,821 | 13,483,508 | |||||
Noncontrolling interests | 29,797 | 29,021 | |||||
Total shareholder’s equity | 14,101,618 | 13,512,529 | |||||
Total liabilities and shareholder’s equity | $ | 92,914,087 | $ | 90,947,174 |
BBVA USA BANCSHARES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(In Thousands) | |||||||||||||||
Interest income: | |||||||||||||||
Interest and fees on loans | $ | 771,245 | $ | 751,470 | $ | 2,359,500 | $ | 2,126,411 | |||||||
Interest on debt securities available for sale | 36,051 | 53,201 | 134,698 | 163,595 | |||||||||||
Interest on debt securities held to maturity | 38,893 | 16,110 | 101,701 | 41,598 | |||||||||||
Interest on trading account assets | 487 | 833 | 1,627 | 2,507 | |||||||||||
Interest and dividends on other earning assets | 46,528 | 17,449 | 105,319 | 44,240 | |||||||||||
Total interest income | 893,204 | 839,063 | 2,702,845 | 2,378,351 | |||||||||||
Interest expense: | |||||||||||||||
Interest on deposits | 203,979 | 139,898 | 588,811 | 353,568 | |||||||||||
Interest on FHLB and other borrowings | 32,975 | 37,131 | 104,901 | 93,799 | |||||||||||
Interest on federal funds purchased and securities sold under agreements to repurchase | 15,137 | 3,169 | 24,886 | 5,104 | |||||||||||
Interest on other short-term borrowings | 72 | 579 | 368 | 1,490 | |||||||||||
Total interest expense | 252,163 | 180,777 | 718,966 | 453,961 | |||||||||||
Net interest income | 641,041 | 658,286 | 1,983,879 | 1,924,390 | |||||||||||
Provision for loan losses | 140,629 | 94,964 | 477,939 | 243,273 | |||||||||||
Net interest income after provision for loan losses | 500,412 | 563,322 | 1,505,940 | 1,681,117 | |||||||||||
Noninterest income: | |||||||||||||||
Service charges on deposit accounts | 65,143 | 60,325 | 185,782 | 175,067 | |||||||||||
Card and merchant processing fees | 50,385 | 44,219 | 146,742 | 127,945 | |||||||||||
Investment services sales fees | 29,287 | 28,286 | 87,316 | 88,176 | |||||||||||
Money transfer income | 26,020 | 23,441 | 73,273 | 68,049 | |||||||||||
Investment banking and advisory fees | 28,324 | 13,956 | 67,939 | 62,398 | |||||||||||
Asset management fees | 11,405 | 11,143 | 34,039 | 32,902 | |||||||||||
Corporate and correspondent investment sales | 11,799 | 12,490 | 24,298 | 40,901 | |||||||||||
Mortgage banking | 8,204 | 6,717 | 19,011 | 23,078 | |||||||||||
Bank owned life insurance | 3,508 | 4,597 | 12,895 | 13,187 | |||||||||||
Investment securities gains, net | 21,003 | — | 29,961 | — | |||||||||||
Other | 66,241 | 53,285 | 182,104 | 154,600 | |||||||||||
Total noninterest income | 321,319 | 258,459 | 863,360 | 786,303 | |||||||||||
Noninterest expense: | |||||||||||||||
Salaries, benefits and commissions | 295,092 | 292,679 | 884,111 | 868,971 | |||||||||||
Professional services | 72,903 | 68,403 | 210,583 | 197,625 | |||||||||||
Equipment | 63,908 | 63,739 | 191,940 | 190,759 | |||||||||||
Net occupancy | 42,241 | 42,514 | 123,298 | 125,607 | |||||||||||
Money transfer expense | 18,005 | 16,120 | 50,273 | 46,143 | |||||||||||
Securities impairment: | |||||||||||||||
Other-than-temporary impairment | — | 418 | 221 | 989 | |||||||||||
Less: non-credit portion recognized in other comprehensive income | — | 135 | 108 | 397 | |||||||||||
Total securities impairment | — | 283 | 113 | 592 | |||||||||||
Other | 106,738 | 121,772 | 318,856 | 318,271 | |||||||||||
Total noninterest expense | 598,887 | 605,510 | 1,779,174 | 1,747,968 | |||||||||||
Net income before income tax expense | 222,844 | 216,271 | 590,126 | 719,452 | |||||||||||
Income tax expense | 39,899 | 41,756 | 106,014 | 151,849 | |||||||||||
Net income | 182,945 | 174,515 | 484,112 | 567,603 | |||||||||||
Less: net income attributable to noncontrolling interests | 514 | 426 | 1,669 | 1,482 | |||||||||||
Net income attributable to BBVA USA Bancshares, Inc. | 182,431 | 174,089 | 482,443 | 566,121 | |||||||||||
Less: preferred stock dividends | 4,561 | 4,576 | 13,771 | 12,699 | |||||||||||
Net income attributable to common shareholder | $ | 177,870 | $ | 169,513 | $ | 468,672 | $ | 553,422 |
BBVA USA BANCSHARES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(In Thousands) | |||||||||||||||
Net income | $ | 182,945 | $ | 174,515 | $ | 484,112 | $ | 567,603 | |||||||
Other comprehensive income, net of tax: | |||||||||||||||
Net unrealized gains (losses) arising during period from debt securities available for sale | 32,464 | (31,189 | ) | 169,868 | (106,320 | ) | |||||||||
Less: reclassification adjustment for net gains on sale of debt securities available for sale in net income | 16,023 | — | 22,857 | — | |||||||||||
Net change in net unrealized holding gains (losses) on debt securities available for sale | 16,441 | (31,189 | ) | 147,011 | (106,320 | ) | |||||||||
Change in unamortized net holding losses on debt securities held to maturity | 2,223 | 1,989 | 5,905 | 6,522 | |||||||||||
Unamortized unrealized net holding losses on debt securities available for sale transferred to debt securities held to maturity | — | — | — | (30,487 | ) | ||||||||||
Less: non-credit related impairment on debt securities held to maturity | — | 103 | 82 | 303 | |||||||||||
Change in unamortized non-credit related impairment on debt securities held to maturity | 175 | 208 | 675 | 623 | |||||||||||
Net change in unamortized holding gains (losses) on debt securities held to maturity | 2,398 | 2,094 | 6,498 | (23,645 | ) | ||||||||||
Unrealized holding gains arising during period from cash flow hedge instruments | 33,662 | 10,996 | 131,665 | 19,340 | |||||||||||
Change in defined benefit plans | — | — | 3,119 | (3,379 | ) | ||||||||||
Other comprehensive income (loss), net of tax | 52,501 | (18,099 | ) | 288,293 | (114,004 | ) | |||||||||
Comprehensive income | 235,446 | 156,416 | 772,405 | 453,599 | |||||||||||
Less: comprehensive income attributable to noncontrolling interests | 514 | 426 | 1,669 | 1,482 | |||||||||||
Comprehensive income attributable to BBVA USA Bancshares, Inc. | $ | 234,932 | $ | 155,990 | $ | 770,736 | $ | 452,117 |
BBVA USA BANCSHARES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY (Unaudited) | |||||||||||||||||||||||||||
Preferred Stock | Common Stock | Surplus | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Non-Controlling Interests | Total Shareholder’s Equity | |||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||||||||||||
Balance, June 30, 2018 | $ | 229,475 | $ | 2,230 | $ | 14,699,773 | $ | (1,476,614 | ) | $ | (293,323 | ) | $ | 29,103 | $ | 13,190,644 | |||||||||||
Net income | — | — | — | 174,089 | — | 426 | 174,515 | ||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | (18,099 | ) | — | (18,099 | ) | ||||||||||||||||||
Preferred stock dividends | — | — | (4,576 | ) | — | — | — | (4,576 | ) | ||||||||||||||||||
Capital contribution | — | — | — | — | — | 3 | 3 | ||||||||||||||||||||
Balance, September 30, 2018 | $ | 229,475 | $ | 2,230 | $ | 14,695,197 | $ | (1,302,525 | ) | $ | (311,422 | ) | $ | 29,532 | $ | 13,342,487 | |||||||||||
Balance, June 30, 2019 | $ | 229,475 | $ | 2,230 | $ | 14,364,527 | $ | (768,290 | ) | $ | 13,508 | $ | 29,273 | $ | 13,870,723 | ||||||||||||
Net income | — | — | — | 182,431 | — | 514 | 182,945 | ||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | 52,501 | — | 52,501 | ||||||||||||||||||||
Preferred stock dividends | — | — | (4,561 | ) | — | — | — | (4,561 | ) | ||||||||||||||||||
Capital contribution | — | — | — | — | — | 10 | 10 | ||||||||||||||||||||
Balance, September 30, 2019 | $ | 229,475 | $ | 2,230 | $ | 14,359,966 | $ | (585,859 | ) | $ | 66,009 | $ | 29,797 | $ | 14,101,618 |
Preferred Stock | Common Stock | Surplus | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Non-Controlling Interests | Total Shareholder’s Equity | |||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||||||||||||
Balance, December 31, 2017 | $ | 229,475 | $ | 2,230 | $ | 14,818,608 | $ | (1,868,659 | ) | $ | (197,405 | ) | $ | 29,061 | $ | 13,013,310 | |||||||||||
Cumulative effect from adoption of ASU 2016-01 | — | — | — | 13 | (13 | ) | — | — | |||||||||||||||||||
Balance, January 1, 2018 | $ | 229,475 | $ | 2,230 | $ | 14,818,608 | $ | (1,868,646 | ) | $ | (197,418 | ) | $ | 29,061 | $ | 13,013,310 | |||||||||||
Net income | — | — | — | 566,121 | — | 1,482 | 567,603 | ||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | (114,004 | ) | — | (114,004 | ) | ||||||||||||||||||
Preferred stock dividends | — | — | (12,699 | ) | — | — | (1,036 | ) | (13,735 | ) | |||||||||||||||||
Common stock dividends | — | — | (110,000 | ) | — | — | — | (110,000 | ) | ||||||||||||||||||
Capital contribution | — | — | — | — | — | 25 | 25 | ||||||||||||||||||||
Vesting of restricted stock | — | — | (712 | ) | — | — | — | (712 | ) | ||||||||||||||||||
Balance, September 30, 2018 | $ | 229,475 | $ | 2,230 | $ | 14,695,197 | $ | (1,302,525 | ) | $ | (311,422 | ) | $ | 29,532 | $ | 13,342,487 | |||||||||||
Balance, December 31, 2018 | $ | 229,475 | $ | 2,230 | $ | 14,545,849 | $ | (1,107,198 | ) | $ | (186,848 | ) | $ | 29,021 | $ | 13,512,529 | |||||||||||
Cumulative effect adjustment related to ASU adoptions (1) | — | — | — | 38,896 | (35,436 | ) | — | 3,460 | |||||||||||||||||||
Balance, January 1, 2019 | $ | 229,475 | $ | 2,230 | $ | 14,545,849 | $ | (1,068,302 | ) | $ | (222,284 | ) | $ | 29,021 | $ | 13,515,989 | |||||||||||
Net income | — | — | — | 482,443 | — | 1,669 | 484,112 | ||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | 288,293 | — | 288,293 | ||||||||||||||||||||
Issuance of common stock | — | — | 802 | — | — | — | 802 | ||||||||||||||||||||
Preferred stock dividends | — | — | (13,771 | ) | — | — | (1,037 | ) | (14,808 | ) | |||||||||||||||||
Common stock dividends | — | — | (170,000 | ) | — | — | — | (170,000 | ) | ||||||||||||||||||
Capital contribution | — | — | — | — | — | 144 | 144 | ||||||||||||||||||||
Vesting of restricted stock | — | — | (2,914 | ) | — | — | — | (2,914 | ) | ||||||||||||||||||
Balance, September 30, 2019 | $ | 229,475 | $ | 2,230 | $ | 14,359,966 | $ | (585,859 | ) | $ | 66,009 | $ | 29,797 | $ | 14,101,618 |
(1) | Related to the Company's adoption of ASU 2016-02, ASU 2017-12 and ASU 2018-02 on January 1, 2019. See Note 1, Basis of Presentation, for additional information. |
BBVA USA BANCSHARES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | |||||||
Nine Months Ended September 30, | |||||||
2019 | 2018 | ||||||
(In Thousands) | |||||||
Operating Activities: | |||||||
Net income | $ | 484,112 | $ | 567,603 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 194,040 | 183,839 | |||||
Securities impairment | 113 | 592 | |||||
Amortization of intangibles | — | 3,933 | |||||
Accretion of discount, loan fees and purchase market adjustments, net | (26,732 | ) | (48,771 | ) | |||
Provision for loan losses | 477,939 | 243,273 | |||||
Net change in trading account assets | (326,344 | ) | 3,747 | ||||
Net change in trading account liabilities | (5,891 | ) | 61,599 | ||||
Originations and purchases of mortgage loans held for sale | (554,488 | ) | (486,143 | ) | |||
Sale of mortgage loans held for sale | 509,685 | 494,542 | |||||
Deferred tax benefit | (11,611 | ) | (949 | ) | |||
Investment securities gains, net | (29,961 | ) | — | ||||
Net gain on sale of premises and equipment | (7,077 | ) | (194 | ) | |||
Gain on sale of loans | (925 | ) | — | ||||
Gain on sale of mortgage loans held for sale | (20,745 | ) | (14,858 | ) | |||
Net loss (gain) on sale of other real estate and other assets | 1,436 | (122 | ) | ||||
Decrease (increase) in other assets | 95,117 | (171,203 | ) | ||||
(Decrease) increase in other liabilities | (14,147 | ) | 23,883 | ||||
Net cash provided by operating activities | 764,521 | 860,771 | |||||
Investing Activities: | |||||||
Proceeds from sales of debt securities available for sale | 2,442,176 | — | |||||
Proceeds from prepayments, maturities and calls of debt securities available for sale | 3,556,157 | 2,749,439 | |||||
Purchases of debt securities available for sale | (2,454,096 | ) | (2,947,622 | ) | |||
Proceeds from prepayments, maturities and calls of debt securities held to maturity | 234,157 | 267,913 | |||||
Purchases of debt securities held to maturity | (3,688,706 | ) | (709,510 | ) | |||
Proceeds from sales of equity securities | 180,375 | 640,662 | |||||
Purchases of equity securities | (182,504 | ) | (648,083 | ) | |||
Net change in loan portfolio | 93,914 | (3,058,583 | ) | ||||
Proceeds from sales of loans | 1,353,379 | 46,055 | |||||
Purchases of premises and equipment | (88,647 | ) | (90,163 | ) | |||
Proceeds from sales of premises and equipment | 12,812 | 3,604 | |||||
Proceeds from settlement of BOLI policies | 3,331 | 4,321 | |||||
Cash payments for premiums of BOLI policies | (26 | ) | (26 | ) | |||
Proceeds from sales of other real estate owned | 21,569 | 15,943 | |||||
Net cash provided by (used in) investing activities | 1,483,891 | (3,726,050 | ) | ||||
Financing Activities: | |||||||
Net increase in total deposits | 1,414,158 | 1,135,463 | |||||
Net increase in federal funds purchased and securities sold under agreements to repurchase | 15,146 | 58,413 | |||||
Net increase in other short-term borrowings | 45 | 50,718 | |||||
Proceeds from FHLB and other borrowings | 4,436,995 | 17,273,916 | |||||
Repayment of FHLB and other borrowings | (4,790,177 | ) | (16,130,158 | ) | |||
Capital contribution for non-controlling interest | 144 | 25 | |||||
Vesting of restricted stock | (2,914 | ) | (712 | ) | |||
Issuance of common stock | 802 | — | |||||
Common dividends paid | (170,000 | ) | (110,000 | ) | |||
Preferred dividends paid | (14,808 | ) | (13,735 | ) | |||
Net cash provided by financing activities | 889,391 | 2,263,930 | |||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 3,137,803 | (601,349 | ) | ||||
Cash, cash equivalents and restricted cash at beginning of year | 3,501,380 | 4,270,950 | |||||
Cash, cash equivalents and restricted cash at end of period | $ | 6,639,183 | $ | 3,669,601 |
September 30, 2019 | |||||||||||||||
Gross Unrealized | |||||||||||||||
Amortized Cost | Gains | Losses | Fair Value | ||||||||||||
(In Thousands) | |||||||||||||||
Debt securities available for sale: | |||||||||||||||
U.S. Treasury and other U.S. government agencies | $ | 3,186,688 | $ | 20,413 | $ | 38,600 | $ | 3,168,501 | |||||||
Agency mortgage-backed securities | 1,477,410 | 18,125 | 9,710 | 1,485,825 | |||||||||||
Agency collateralized mortgage obligations | 2,950,019 | 13,760 | 6,318 | 2,957,461 | |||||||||||
States and political subdivisions | 756 | 47 | — | 803 | |||||||||||
Total | $ | 7,614,873 | $ | 52,345 | $ | 54,628 | $ | 7,612,590 | |||||||
Debt securities held to maturity: | |||||||||||||||
U.S. Treasury and other U.S. government agencies | $ | 1,285,850 | $ | 62,972 | $ | — | $ | 1,348,822 | |||||||
Collateralized mortgage obligations: | |||||||||||||||
Agency | 4,318,121 | 114,366 | 11,071 | 4,421,416 | |||||||||||
Non-agency | 39,657 | 8,132 | 196 | 47,593 | |||||||||||
Asset-backed securities and other | 55,222 | 1,350 | 1,336 | 55,236 | |||||||||||
States and political subdivisions | 635,784 | 12,384 | 6,739 | 641,429 | |||||||||||
Total | $ | 6,334,634 | $ | 199,204 | $ | 19,342 | $ | 6,514,496 |
December 31, 2018 | |||||||||||||||
Gross Unrealized | |||||||||||||||
Amortized Cost | Gains | Losses | Fair Value | ||||||||||||
(In Thousands) | |||||||||||||||
Debt securities available for sale: | |||||||||||||||
U.S. Treasury and other U.S. government agencies | $ | 5,525,902 | $ | 13,000 | $ | 107,435 | $ | 5,431,467 | |||||||
Agency mortgage-backed securities | 2,156,872 | 9,402 | 36,453 | 2,129,821 | |||||||||||
Agency collateralized mortgage obligations | 3,492,538 | 4,021 | 77,580 | 3,418,979 | |||||||||||
States and political subdivisions | 886 | 63 | — | 949 | |||||||||||
Total | $ | 11,176,198 | $ | 26,486 | $ | 221,468 | $ | 10,981,216 | |||||||
Debt securities held to maturity: | |||||||||||||||
Collateralized mortgage obligations: | |||||||||||||||
Agency | $ | 2,089,860 | $ | 26,988 | $ | 10,338 | $ | 2,106,510 | |||||||
Non-agency | 46,834 | 7,198 | 1,129 | 52,903 | |||||||||||
Asset-backed securities and other | 61,304 | 2,346 | 471 | 63,179 | |||||||||||
States and political subdivisions | 687,615 | 18,545 | 3,332 | 702,828 | |||||||||||
Total | $ | 2,885,613 | $ | 55,077 | $ | 15,270 | $ | 2,925,420 |
September 30, 2019 | |||||||||||||||||||||||
Securities in a loss position for less than 12 months | Securities in a loss position for 12 months or longer | Total | |||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Debt securities available for sale: | |||||||||||||||||||||||
U.S. Treasury and other U.S. government agencies | $ | 83,020 | $ | 86 | $ | 854,321 | $ | 38,514 | $ | 937,341 | $ | 38,600 | |||||||||||
Agency mortgage-backed securities | 33,955 | 64 | 881,426 | 9,646 | 915,381 | 9,710 | |||||||||||||||||
Agency collateralized mortgage obligations | 483,488 | 723 | 752,903 | 5,595 | 1,236,391 | 6,318 | |||||||||||||||||
Total | $ | 600,463 | $ | 873 | $ | 2,488,650 | $ | 53,755 | $ | 3,089,113 | $ | 54,628 | |||||||||||
Debt securities held to maturity: | |||||||||||||||||||||||
Collateralized mortgage obligations: | |||||||||||||||||||||||
Agency | $ | 752,834 | $ | 11,071 | $ | — | $ | — | $ | 752,834 | $ | 11,071 | |||||||||||
Non-agency | 8,109 | 99 | 5,320 | 97 | 13,429 | 196 | |||||||||||||||||
Asset-backed securities and other | 43,549 | 879 | 9,278 | 457 | 52,827 | 1,336 | |||||||||||||||||
States and political subdivisions | 171,340 | 6,595 | 30,926 | 144 | 202,266 | 6,739 | |||||||||||||||||
Total | $ | 975,832 | $ | 18,644 | $ | 45,524 | $ | 698 | $ | 1,021,356 | $ | 19,342 |
December 31, 2018 | |||||||||||||||||||||||
Securities in a loss position for less than 12 months | Securities in a loss position for 12 months or longer | Total | |||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Debt securities available for sale: | |||||||||||||||||||||||
U.S. Treasury and other U.S. government agencies | $ | 338 | $ | 1 | $ | 3,879,564 | $ | 107,434 | $ | 3,879,902 | $ | 107,435 | |||||||||||
Agency mortgage-backed securities | 68,404 | 279 | 1,533,156 | 36,174 | 1,601,560 | 36,453 | |||||||||||||||||
Agency collateralized mortgage obligations | 116,052 | 132 | 2,710,008 | 77,448 | 2,826,060 | 77,580 | |||||||||||||||||
Total | $ | 184,794 | $ | 412 | $ | 8,122,728 | $ | 221,056 | $ | 8,307,522 | $ | 221,468 | |||||||||||
Debt securities held to maturity: | |||||||||||||||||||||||
Collateralized mortgage obligations: | |||||||||||||||||||||||
Agency | $ | — | $ | — | $ | 845,512 | $ | 10,338 | $ | 845,512 | $ | 10,338 | |||||||||||
Non-agency | 3,715 | 71 | 13,195 | 1,058 | 16,910 | 1,129 | |||||||||||||||||
Asset-backed securities and other | 6,911 | 87 | 5,994 | 384 | 12,905 | 471 | |||||||||||||||||
States and political subdivisions | 116,925 | 2,148 | 118,834 | 1,184 | 235,759 | 3,332 | |||||||||||||||||
Total | $ | 127,551 | $ | 2,306 | $ | 983,535 | $ | 12,964 | $ | 1,111,086 | $ | 15,270 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(In Thousands) | |||||||||||||||
Balance at beginning of period | $ | 23,529 | $ | 23,133 | $ | 23,416 | $ | 22,824 | |||||||
Reductions for securities paid off during the period (realized) | — | — | — | — | |||||||||||
Additions for the credit component on debt securities in which OTTI was not previously recognized | — | — | — | — | |||||||||||
Additions for the credit component on debt securities in which OTTI was previously recognized | — | 283 | 113 | 592 | |||||||||||
Balance at end of period | $ | 23,529 | $ | 23,416 | $ | 23,529 | $ | 23,416 |
September 30, 2019 | Amortized Cost | Fair Value | ||||||
(In Thousands) | ||||||||
Debt securities available for sale: | ||||||||
Maturing within one year | $ | 399,828 | $ | 399,391 | ||||
Maturing after one but within five years | 2,185,935 | 2,202,123 | ||||||
Maturing after five but within ten years | 66,633 | 67,896 | ||||||
Maturing after ten years | 535,048 | 499,894 | ||||||
3,187,444 | 3,169,304 | |||||||
Mortgage-backed securities and collateralized mortgage obligations | 4,427,429 | 4,443,286 | ||||||
Total | $ | 7,614,873 | $ | 7,612,590 | ||||
Debt securities held to maturity: | ||||||||
Maturing within one year | $ | 834 | $ | 835 | ||||
Maturing after one but within five years | 825,404 | 858,940 | ||||||
Maturing after five but within ten years | 937,617 | 971,268 | ||||||
Maturing after ten years | 213,001 | 214,444 | ||||||
1,976,856 | 2,045,487 | |||||||
Collateralized mortgage obligations | 4,357,778 | 4,469,009 | ||||||
Total | $ | 6,334,634 | $ | 6,514,496 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(In Thousands) | |||||||||||||||
Gross gains | $ | 21,003 | $ | — | $ | 29,961 | $ | — | |||||||
Gross losses | — | — | — | — | |||||||||||
Net realized gains | $ | 21,003 | $ | — | $ | 29,961 | $ | — |
September 30, 2019 | December 31, 2018 | ||||||
(In Thousands) | |||||||
Commercial loans: | |||||||
Commercial, financial and agricultural | $ | 24,683,130 | $ | 26,562,319 | |||
Real estate – construction | 2,005,347 | 1,997,537 | |||||
Commercial real estate – mortgage | 13,074,173 | 13,016,796 | |||||
Total commercial loans | 39,762,650 | 41,576,652 | |||||
Consumer loans: | |||||||
Residential real estate – mortgage | 13,503,327 | 13,422,156 | |||||
Equity lines of credit | 2,618,112 | 2,747,217 | |||||
Equity loans | 263,444 | 298,614 | |||||
Credit card | 936,147 | 818,308 | |||||
Consumer direct | 2,388,358 | 2,553,588 | |||||
Consumer indirect | 3,848,533 | 3,770,019 | |||||
Total consumer loans | 23,557,921 | 23,609,902 | |||||
Total loans | $ | 63,320,571 | $ | 65,186,554 |
Commercial, Financial and Agricultural | Commercial Real Estate (1) | Residential Real Estate (2) | Consumer (3) | Total | |||||||||||||||
(In Thousands) | |||||||||||||||||||
Three months ended September 30, 2019 | |||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||
Beginning balance | $ | 456,054 | $ | 117,786 | $ | 100,351 | $ | 303,469 | $ | 977,660 | |||||||||
Provision for loan losses | 28,787 | 6,410 | 3,214 | 102,218 | 140,629 | ||||||||||||||
Loans charged-off | (73,178 | ) | (2,270 | ) | (4,835 | ) | (121,400 | ) | (201,683 | ) | |||||||||
Loan recoveries | 3,236 | 79 | 3,183 | 19,087 | 25,585 | ||||||||||||||
Net charge-offs | (69,942 | ) | (2,191 | ) | (1,652 | ) | (102,313 | ) | (176,098 | ) | |||||||||
Ending balance | $ | 414,899 | $ | 122,005 | $ | 101,913 | $ | 303,374 | $ | 942,191 | |||||||||
Three months ended September 30, 2018 | |||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||
Beginning balance | $ | 431,510 | $ | 113,246 | $ | 98,032 | $ | 217,212 | $ | 860,000 | |||||||||
Provision for loan losses | 9,560 | 896 | 1,446 | 83,062 | 94,964 | ||||||||||||||
Loans charged-off | (20,142 | ) | (2,328 | ) | (5,570 | ) | (73,599 | ) | (101,639 | ) | |||||||||
Loan recoveries | 6,167 | 316 | 3,454 | 12,131 | 22,068 | ||||||||||||||
Net charge-offs | (13,975 | ) | (2,012 | ) | (2,116 | ) | (61,468 | ) | (79,571 | ) | |||||||||
Ending balance | $ | 427,095 | $ | 112,130 | $ | 97,362 | $ | 238,806 | $ | 875,393 | |||||||||
Nine Months Ended September 30, 2019 | |||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||
Beginning balance | $ | 393,315 | $ | 112,437 | $ | 101,929 | $ | 277,561 | $ | 885,242 | |||||||||
Provision for loan losses | 142,185 | 9,906 | 5,147 | 320,701 | 477,939 | ||||||||||||||
Loan charge-offs | (132,006 | ) | (2,407 | ) | (14,526 | ) | (345,028 | ) | (493,967 | ) | |||||||||
Loan recoveries | 11,405 | 2,069 | 9,363 | 50,140 | 72,977 | ||||||||||||||
Net charge-offs | (120,601 | ) | (338 | ) | (5,163 | ) | (294,888 | ) | (420,990 | ) | |||||||||
Ending balance | $ | 414,899 | $ | 122,005 | $ | 101,913 | $ | 303,374 | $ | 942,191 | |||||||||
Nine Months Ended September 30, 2018 | |||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||
Beginning balance | $ | 420,635 | $ | 118,133 | $ | 109,856 | $ | 194,136 | $ | 842,760 | |||||||||
Provision (credit) for loan losses | 39,397 | (9,184 | ) | (7,339 | ) | 220,399 | 243,273 | ||||||||||||
Loan charge-offs | (42,968 | ) | (3,217 | ) | (15,123 | ) | (210,195 | ) | (271,503 | ) | |||||||||
Loan recoveries | 10,031 | 6,398 | 9,968 | 34,466 | 60,863 | ||||||||||||||
Net (charge-offs) recoveries | (32,937 | ) | 3,181 | (5,155 | ) | (175,729 | ) | (210,640 | ) | ||||||||||
Ending balance | $ | 427,095 | $ | 112,130 | $ | 97,362 | $ | 238,806 | $ | 875,393 |
(1) | Includes commercial real estate – mortgage and real estate – construction loans. |
(2) | Includes residential real estate – mortgage, equity lines of credit and equity loans. |
(3) | Includes credit card, consumer direct and consumer indirect loans. |
Commercial, Financial and Agricultural | Commercial Real Estate (1) | Residential Real Estate (2) | Consumer (3) | Total | |||||||||||||||
(In Thousands) | |||||||||||||||||||
September 30, 2019 | |||||||||||||||||||
Ending balance of allowance attributable to loans: | |||||||||||||||||||
Individually evaluated for impairment | $ | 92,309 | $ | 11,645 | $ | 23,629 | $ | 1,083 | $ | 128,666 | |||||||||
Collectively evaluated for impairment | 322,590 | 110,360 | 78,284 | 302,291 | 813,525 | ||||||||||||||
Total allowance for loan losses | $ | 414,899 | $ | 122,005 | $ | 101,913 | $ | 303,374 | $ | 942,191 | |||||||||
Ending balance of loans: | |||||||||||||||||||
Individually evaluated for impairment | $ | 269,636 | $ | 83,201 | $ | 156,814 | $ | 7,498 | $ | 517,149 | |||||||||
Collectively evaluated for impairment | 24,413,494 | 14,996,319 | 16,228,069 | 7,165,540 | 62,803,422 | ||||||||||||||
Total loans | $ | 24,683,130 | $ | 15,079,520 | $ | 16,384,883 | $ | 7,173,038 | $ | 63,320,571 | |||||||||
December 31, 2018 | |||||||||||||||||||
Ending balance of allowance attributable to loans: | |||||||||||||||||||
Individually evaluated for impairment | $ | 73,072 | $ | 6,283 | $ | 26,008 | $ | 1,880 | $ | 107,243 | |||||||||
Collectively evaluated for impairment | 320,243 | 106,154 | 75,921 | 275,681 | 777,999 | ||||||||||||||
Total allowance for loan losses | $ | 393,315 | $ | 112,437 | $ | 101,929 | $ | 277,561 | $ | 885,242 | |||||||||
Ending balance of loans: | |||||||||||||||||||
Individually evaluated for impairment | $ | 386,282 | $ | 85,250 | $ | 153,342 | $ | 5,135 | $ | 630,009 | |||||||||
Collectively evaluated for impairment | 26,176,037 | 14,929,083 | 16,314,645 | 7,136,780 | 64,556,545 | ||||||||||||||
Total loans | $ | 26,562,319 | $ | 15,014,333 | $ | 16,467,987 | $ | 7,141,915 | $ | 65,186,554 |
(1) | Includes commercial real estate – mortgage and real estate – construction loans. |
(2) | Includes residential real estate – mortgage, equity lines of credit and equity loans. |
(3) | Includes credit card, consumer direct and consumer indirect loans. |
September 30, 2019 | |||||||||||||||||||||||
Individually Evaluated Impaired Loans With No Recorded Allowance | Individually Evaluated Impaired Loans With a Recorded Allowance | ||||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Allowance | Recorded Investment | Unpaid Principal Balance | Allowance | ||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Commercial, financial and agricultural | $ | 106,174 | $ | 109,976 | $ | — | $ | 163,462 | $ | 211,790 | $ | 92,309 | |||||||||||
Real estate – construction | — | — | — | 120 | 120 | 11 | |||||||||||||||||
Commercial real estate – mortgage | 52,645 | 57,164 | — | 30,436 | 32,695 | 11,634 | |||||||||||||||||
Residential real estate – mortgage | — | — | — | 111,609 | 111,609 | 8,616 | |||||||||||||||||
Equity lines of credit | — | — | — | 15,968 | 15,973 | 12,155 | |||||||||||||||||
Equity loans | — | — | — | 29,237 | 30,086 | 2,858 | |||||||||||||||||
Credit card | — | — | — | — | — | — | |||||||||||||||||
Consumer direct | — | — | — | 7,311 | 9,307 | 899 | |||||||||||||||||
Consumer indirect | — | — | — | 187 | 187 | 184 | |||||||||||||||||
Total loans | $ | 158,819 | $ | 167,140 | $ | — | $ | 358,330 | $ | 411,767 | $ | 128,666 |
December 31, 2018 | |||||||||||||||||||||||
Individually Evaluated Impaired Loans With No Recorded Allowance | Individually Evaluated Impaired Loans With a Recorded Allowance | ||||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Allowance | Recorded Investment | Unpaid Principal Balance | Allowance | ||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Commercial, financial and agricultural | $ | 162,011 | $ | 196,316 | $ | — | $ | 224,271 | $ | 262,947 | $ | 73,072 | |||||||||||
Real estate – construction | — | — | — | 138 | 138 | 6 | |||||||||||||||||
Commercial real estate – mortgage | 45,628 | 48,404 | — | 39,484 | 44,463 | 6,277 | |||||||||||||||||
Residential real estate – mortgage | — | — | — | 104,787 | 104,787 | 8,711 | |||||||||||||||||
Equity lines of credit | — | — | — | 16,012 | 16,016 | 13,334 | |||||||||||||||||
Equity loans | — | — | — | 32,543 | 33,258 | 3,963 | |||||||||||||||||
Credit card | — | — | — | — | — | — | |||||||||||||||||
Consumer direct | — | — | — | 4,715 | 4,715 | 1,473 | |||||||||||||||||
Consumer indirect | — | — | — | 420 | 420 | 407 | |||||||||||||||||
Total loans | $ | 207,639 | $ | 244,720 | $ | — | $ | 422,370 | $ | 466,744 | $ | 107,243 |
Three Months Ended September 30, 2019 | Three Months Ended September 30, 2018 | ||||||||||||||
Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | ||||||||||||
(In Thousands) | |||||||||||||||
Commercial, financial and agricultural | $ | 318,790 | $ | 496 | $ | 286,815 | $ | 29 | |||||||
Real estate – construction | 584 | 2 | 12,182 | 1 | |||||||||||
Commercial real estate – mortgage | 77,165 | 221 | 80,779 | 238 | |||||||||||
Residential real estate – mortgage | 109,450 | 691 | 105,743 | 660 | |||||||||||
Equity lines of credit | 16,553 | 164 | 16,885 | 184 | |||||||||||
Equity loans | 29,455 | 268 | 33,836 | 295 | |||||||||||
Credit card | — | — | — | — | |||||||||||
Consumer direct | 7,360 | 102 | 923 | 9 | |||||||||||
Consumer indirect | 203 | — | 550 | 1 | |||||||||||
Total loans | $ | 559,560 | $ | 1,944 | $ | 537,713 | $ | 1,417 | |||||||
Nine Months Ended September 30, 2019 | Nine Months Ended September 30, 2018 | ||||||||||||||
Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | ||||||||||||
(In Thousands) | |||||||||||||||
Commercial, financial and agricultural | $ | 377,390 | $ | 2,033 | $ | 268,037 | $ | 622 | |||||||
Real estate – construction | 436 | 6 | 10,060 | 5 | |||||||||||
Commercial real estate – mortgage | 79,910 | 687 | 82,350 | 648 | |||||||||||
Residential real estate – mortgage | 107,456 | 2,021 | 109,262 | 2,029 | |||||||||||
Equity lines of credit | 15,617 | 514 | 17,833 | 571 | |||||||||||
Equity loans | 30,568 | 816 | 34,814 | 897 | |||||||||||
Credit card | — | — | — | — | |||||||||||
Consumer direct | 6,459 | 233 | 2,197 | 24 | |||||||||||
Consumer indirect | 280 | — | 707 | 4 | |||||||||||
Total loans | $ | 618,116 | $ | 6,310 | $ | 525,260 | $ | 4,800 |
• | The Company’s internally assigned letter grades “AAA” through “B-” correspond to the regulatory classification “Pass.” These loans do not have any identified potential or well-defined weaknesses and have a high likelihood of orderly repayment. Exceptions exist when either the facility is fully secured by a CD and held at the Company or the facility is secured by properly margined and controlled marketable securities. |
• | Internally assigned letter grades “CCC+” through “CCC” correspond to the regulatory classification “Special Mention.” Loans within this classification have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the institution’s credit position at some future date. Special mention loans are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. |
• | Internally assigned letter grades “CCC-” through “D1” correspond to the regulatory classification “Substandard.” A loan classified as substandard is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Substandard loans have a well-defined weakness or weaknesses that jeopardize the liquidation of the loan. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. |
• | The internally assigned letter grade “D2” corresponds to the regulatory classification “Doubtful.” Loans classified as doubtful have all the weaknesses inherent in a loan classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable or improbable. |
Commercial | |||||||||||
September 30, 2019 | |||||||||||
Commercial, Financial and Agricultural | Real Estate - Construction | Commercial Real Estate - Mortgage | |||||||||
(In Thousands) | |||||||||||
Pass | $ | 23,417,187 | $ | 1,921,410 | $ | 12,718,589 | |||||
Special Mention | 661,147 | 10,430 | 170,527 | ||||||||
Substandard | 502,442 | 73,507 | 171,154 | ||||||||
Doubtful | 102,354 | — | 13,903 | ||||||||
$ | 24,683,130 | $ | 2,005,347 | $ | 13,074,173 |
December 31, 2018 | |||||||||||
Commercial, Financial and Agricultural | Real Estate - Construction | Commercial Real Estate - Mortgage | |||||||||
(In Thousands) | |||||||||||
Pass | $ | 25,395,640 | $ | 1,971,852 | $ | 12,620,421 | |||||
Special Mention | 412,129 | 12,372 | 215,322 | ||||||||
Substandard | 631,706 | 13,313 | 170,303 | ||||||||
Doubtful | 122,844 | — | 10,750 | ||||||||
$ | 26,562,319 | $ | 1,997,537 | $ | 13,016,796 |
Consumer | |||||||||||||||||||||||
September 30, 2019 | |||||||||||||||||||||||
Residential Real Estate – Mortgage | Equity Lines of Credit | Equity Loans | Credit Card | Consumer Direct | Consumer Indirect | ||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Performing | $ | 13,345,060 | $ | 2,579,161 | $ | 254,015 | $ | 916,110 | $ | 2,363,237 | $ | 3,805,994 | |||||||||||
Nonperforming | 158,267 | 38,951 | 9,429 | 20,037 | 25,121 | 42,539 | |||||||||||||||||
$ | 13,503,327 | $ | 2,618,112 | $ | 263,444 | $ | 936,147 | $ | 2,388,358 | $ | 3,848,533 |
December 31, 2018 | |||||||||||||||||||||||
Residential Real Estate -Mortgage | Equity Lines of Credit | Equity Loans | Credit Card | Consumer Direct | Consumer Indirect | ||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Performing | $ | 13,248,822 | $ | 2,707,289 | $ | 287,392 | $ | 801,297 | $ | 2,535,724 | $ | 3,742,394 | |||||||||||
Nonperforming | 173,334 | 39,928 | 11,222 | 17,011 | 17,864 | 27,625 | |||||||||||||||||
$ | 13,422,156 | $ | 2,747,217 | $ | 298,614 | $ | 818,308 | $ | 2,553,588 | $ | 3,770,019 |
September 30, 2019 | |||||||||||||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | 90 Days or More Past Due | Nonaccrual | Accruing TDRs | Total Past Due and Impaired | Not Past Due or Impaired | Total | ||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||||||
Commercial, financial and agricultural | $ | 30,779 | $ | 24,036 | $ | 11,179 | $ | 301,021 | $ | 1,552 | $ | 368,567 | $ | 24,314,563 | $ | 24,683,130 | |||||||||||||||
Real estate – construction | 3,831 | 185 | 532 | 1,616 | 76 | 6,240 | 1,999,107 | 2,005,347 | |||||||||||||||||||||||
Commercial real estate – mortgage | 13,939 | 41 | 2,375 | 110,632 | 3,492 | 130,479 | 12,943,694 | 13,074,173 | |||||||||||||||||||||||
Residential real estate – mortgage | 74,796 | 22,329 | 4,778 | 153,078 | 60,537 | 315,518 | 13,187,809 | 13,503,327 | |||||||||||||||||||||||
Equity lines of credit | 11,088 | 4,616 | 2,072 | 36,879 | — | 54,655 | 2,563,457 | 2,618,112 | |||||||||||||||||||||||
Equity loans | 2,452 | 978 | 524 | 8,728 | 24,789 | 37,471 | 225,973 | 263,444 | |||||||||||||||||||||||
Credit card | 10,372 | 8,092 | 20,037 | — | — | 38,501 | 897,646 | 936,147 | |||||||||||||||||||||||
Consumer direct | 35,762 | 23,075 | 17,773 | 7,348 | 7,360 | 91,318 | 2,297,040 | 2,388,358 | |||||||||||||||||||||||
Consumer indirect | 81,075 | 26,294 | 8,599 | 33,940 | — | 149,908 | 3,698,625 | 3,848,533 | |||||||||||||||||||||||
Total loans | $ | 264,094 | $ | 109,646 | $ | 67,869 | $ | 653,242 | $ | 97,806 | $ | 1,192,657 | $ | 62,127,914 | $ | 63,320,571 |
December 31, 2018 | |||||||||||||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | 90 Days or More Past Due | Nonaccrual | Accruing TDRs | Total Past Due and Impaired | Not Past Due or Impaired | Total | ||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||||||
Commercial, financial and agricultural | $ | 17,257 | $ | 11,784 | $ | 8,114 | $ | 400,389 | $ | 18,926 | $ | 456,470 | $ | 26,105,849 | $ | 26,562,319 | |||||||||||||||
Real estate – construction | 218 | 8,849 | 544 | 2,851 | 116 | 12,578 | 1,984,959 | 1,997,537 | |||||||||||||||||||||||
Commercial real estate – mortgage | 11,678 | 3,375 | 2,420 | 110,144 | 3,661 | 131,278 | 12,885,518 | 13,016,796 | |||||||||||||||||||||||
Residential real estate – mortgage | 80,366 | 29,852 | 5,927 | 167,099 | 57,446 | 340,690 | 13,081,466 | 13,422,156 | |||||||||||||||||||||||
Equity lines of credit | 14,007 | 5,109 | 2,226 | 37,702 | — | 59,044 | 2,688,173 | 2,747,217 | |||||||||||||||||||||||
Equity loans | 3,471 | 843 | 180 | 10,939 | 26,768 | 42,201 | 256,413 | 298,614 | |||||||||||||||||||||||
Credit card | 9,516 | 7,323 | 17,011 | — | — | 33,850 | 784,458 | 818,308 | |||||||||||||||||||||||
Consumer direct | 37,336 | 19,543 | 13,336 | 4,528 | 2,684 | 77,427 | 2,476,161 | 2,553,588 | |||||||||||||||||||||||
Consumer indirect | 100,434 | 32,172 | 9,791 | 17,834 | — | 160,231 | 3,609,788 | 3,770,019 | |||||||||||||||||||||||
Total loans | $ | 274,283 | $ | 118,850 | $ | 59,549 | $ | 751,486 | $ | 109,601 | $ | 1,313,769 | $ | 63,872,785 | $ | 65,186,554 |
Three Months Ended September 30, 2019 | Three Months Ended September 30, 2018 | ||||||||||||
Number of Contracts | Post-Modification Outstanding Recorded Investment | Number of Contracts | Post-Modification Outstanding Recorded Investment | ||||||||||
(Dollars in Thousands) | |||||||||||||
Commercial, financial and agricultural | 4 | $ | 1,411 | 1 | $ | 104,065 | |||||||
Real estate – construction | — | — | — | — | |||||||||
Commercial real estate – mortgage | 2 | 18,115 | 1 | 679 | |||||||||
Residential real estate – mortgage | 29 | 8,523 | 17 | 2,025 | |||||||||
Equity lines of credit | 3 | 259 | 3 | 80 | |||||||||
Equity loans | 1 | 49 | 7 | 464 | |||||||||
Credit card | — | — | — | — | |||||||||
Consumer direct | 110 | 4,401 | 2 | 1,098 | |||||||||
Consumer indirect | 1 | 2 | — | — | |||||||||
Nine Months Ended September 30, 2019 | Nine Months Ended September 30, 2018 | ||||||||||||
Number of Contracts | Post-Modification Outstanding Recorded Investment | Number of Contracts | Post-Modification Outstanding Recorded Investment | ||||||||||
(Dollars in Thousands) | |||||||||||||
Commercial, financial and agricultural | 10 | $ | 28,330 | 5 | $ | 121,263 | |||||||
Real estate – construction | — | — | 2 | 307 | |||||||||
Commercial real estate – mortgage | 6 | 20,638 | 3 | 2,313 | |||||||||
Residential real estate – mortgage | 65 | 15,574 | 50 | 10,862 | |||||||||
Equity lines of credit | 5 | 353 | 7 | 197 | |||||||||
Equity loans | 8 | 456 | 19 | 2,235 | |||||||||
Credit card | — | — | — | — | |||||||||
Consumer direct | 178 | 9,176 | 3 | 1,104 | |||||||||
Consumer indirect | 1 | 2 | — | — |
Three Months Ended September 30, 2019 | Three Months Ended September 30, 2018 | ||||||||||||
Number of Contracts | Recorded Investment at Default | Number of Contracts | Recorded Investment at Default | ||||||||||
(Dollars in Thousands) | |||||||||||||
Commercial, financial and agricultural | — | $ | — | — | $ | — | |||||||
Real estate – construction | — | — | — | — | |||||||||
Commercial real estate – mortgage | 1 | 599 | — | — | |||||||||
Residential real estate – mortgage | 1 | 234 | 2 | 327 | |||||||||
Equity lines of credit | — | — | — | — | |||||||||
Equity loans | — | — | — | — | |||||||||
Credit card | — | — | — | — | |||||||||
Consumer direct | 1 | 600 | — | — | |||||||||
Consumer indirect | — | — | — | — | |||||||||
Nine Months Ended September 30, 2019 | Nine Months Ended September 30, 2018 | ||||||||||||
Number of Contracts | Recorded Investment at Default | Number of Contracts | Recorded Investment at Default | ||||||||||
(Dollars in Thousands) | |||||||||||||
Commercial, financial and agricultural | — | $ | — | — | $ | — | |||||||
Real estate – construction | — | — | — | — | |||||||||
Commercial real estate – mortgage | 1 | 599 | — | — | |||||||||
Residential real estate – mortgage | 2 | 455 | 4 | 474 | |||||||||
Equity lines of credit | — | — | — | — | |||||||||
Equity loans | 2 | 151 | 3 | 167 | |||||||||
Credit card | — | — | — | — | |||||||||
Consumer direct | 4 | 2,610 | — | — | |||||||||
Consumer indirect | — | — | — | — |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(In Thousands) | |||||||||||||||
Loans transferred from held for investment to held for sale | $ | — | $ | — | $ | 1,196,883 | $ | — | |||||||
Charge-offs on loans recognized at transfer from held for investment to held for sale | — | — | — | — | |||||||||||
Loans and loans held for sale sold | 10,897 | 37,580 | 1,092,195 | 46,055 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(In Thousands) | |||||||||||||||
Residential real estate loans originated for sale in the secondary market sold (1) | $ | 188,550 | $ | 148,967 | $ | 488,940 | $ | 479,684 | |||||||
Net gains recognized on sales of residential real estate loans originated for sale in the secondary market (2) | 8,101 | 5,409 | 20,745 | 14,858 | |||||||||||
Servicing fees recognized (2) | 2,703 | 2,544 | 8,007 | 8,181 |
(1) | The Company has retained servicing responsibilities for all loans sold that were originated for sale in the secondary market. |
(2) | Recorded as a component of mortgage banking income in the Company's Unaudited Condensed Consolidated Statements of Income. |
September 30, 2019 | December 31, 2018 | ||||||
(In Thousands) | |||||||
Recorded balance of residential real estate mortgage loans sold with retained servicing (1) | $ | 4,514,658 | $ | 4,588,273 | |||
MSRs (2) | 37,265 | 51,539 |
(1) | These loans are not included in loans on the Company's Unaudited Condensed Consolidated Balance Sheets. |
(2) | Recorded under the fair value method and included in other assets on the Company's Unaudited Condensed Consolidated Balance Sheets. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(In Thousands) | |||||||||||||||
Carrying value, at beginning of period | $ | 41,966 | $ | 54,276 | $ | 51,539 | $ | 49,597 | |||||||
Additions | 1,600 | 1,594 | 4,305 | 5,266 | |||||||||||
Increase (decrease) in fair value: | |||||||||||||||
Due to changes in valuation inputs or assumptions | (4,269 | ) | 2,533 | (11,303 | ) | 9,403 | |||||||||
Due to other changes in fair value (1) | (2,032 | ) | (3,091 | ) | (7,276 | ) | (8,954 | ) | |||||||
Carrying value, at end of period | $ | 37,265 | $ | 55,312 | $ | 37,265 | $ | 55,312 |
(1) | Represents the realization of expected net servicing cash flows, expected borrower repayments and the passage of time. |
September 30, 2019 | December 31, 2018 | ||||||
(Dollars in Thousands) | |||||||
Fair value of MSRs | $ | 37,265 | $ | 51,539 | |||
Composition of residential loans serviced for others: | |||||||
Fixed rate mortgage loans | 98.0 | % | 97.7 | % | |||
Adjustable rate mortgage loans | 2.0 | 2.3 | |||||
Total | 100.0 | % | 100.0 | % | |||
Weighted average life (in years) | 4.1 | 6.6 | |||||
Prepayment speed: | 18.1 | % | 7.4 | % | |||
Effect on fair value of a 10% increase | $ | (2,939 | ) | $ | (1,432 | ) | |
Effect on fair value of a 20% increase | (5,007 | ) | (2,778 | ) | |||
Weighted average option adjusted spread: | 6.4 | % | 6.5 | % | |||
Effect on fair value of a 10% increase | $ | (1,055 | ) | $ | (1,627 | ) | |
Effect on fair value of a 20% increase | (1,568 | ) | (3,116 | ) |
September 30, 2019 | December 31, 2018 | ||||||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||||||
Notional Amount | Derivative Assets (1) | Derivative Liabilities (2) | Notional Amount | Derivative Assets (1) | Derivative Liabilities (2) | ||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||
Fair value hedges: | |||||||||||||||||||||||
Interest rate swaps related to long-term debt | $ | 2,923,950 | $ | 30,240 | $ | — | $ | 2,923,950 | $ | 13,479 | $ | 28,479 | |||||||||||
Total fair value hedges | 30,240 | — | 13,479 | 28,479 | |||||||||||||||||||
Cash flow hedges: | |||||||||||||||||||||||
Interest rate contracts: | |||||||||||||||||||||||
Swaps related to commercial loans | 7,000,000 | — | — | 1,500,000 | 2,367 | — | |||||||||||||||||
Swaps related to FHLB advances | 120,000 | — | 3,419 | 120,000 | — | 1,938 | |||||||||||||||||
Foreign currency contracts: | |||||||||||||||||||||||
Forwards related to currency fluctuations | 1,380 | 51 | — | 5,272 | 174 | — | |||||||||||||||||
Total cash flow hedges | 51 | 3,419 | 2,541 | 1,938 | |||||||||||||||||||
Total derivatives designated as hedging instruments | $ | 30,291 | $ | 3,419 | $ | 16,020 | $ | 30,417 | |||||||||||||||
Free-standing derivatives not designated as hedging instruments: | |||||||||||||||||||||||
Interest rate contracts: | |||||||||||||||||||||||
Forward contracts related to held for sale mortgages | $ | 307,980 | $ | 252 | $ | 605 | $ | 166,641 | $ | 187 | $ | 1,021 | |||||||||||
Option contracts related to mortgage servicing rights | 75,000 | 234 | — | — | — | — | |||||||||||||||||
Interest rate lock commitments | 180,127 | 4,038 | — | 91,395 | 2,012 | — | |||||||||||||||||
Equity contracts: | |||||||||||||||||||||||
Purchased equity option related to equity-linked CDs | 209,724 | 6,989 | — | 450,660 | 14,185 | — | |||||||||||||||||
Written equity option related to equity-linked CDs | 179,156 | — | 5,966 | 389,030 | — | 12,434 | |||||||||||||||||
Foreign exchange contracts: | |||||||||||||||||||||||
Forwards and swaps related to commercial loans | 525,441 | 3,532 | 1,128 | 413,127 | 1,565 | 1,109 | |||||||||||||||||
Spots related to commercial loans | 15,343 | 4 | 28 | 19,911 | 24 | 2 | |||||||||||||||||
Swap associated with sale of Visa, Inc. Class B shares | 148,907 | — | 5,494 | 111,466 | — | 3,706 | |||||||||||||||||
Futures contracts (3) | 4,470,000 | — | — | 3,223,000 | — | — | |||||||||||||||||
Trading account assets and liabilities: | |||||||||||||||||||||||
Interest rate contracts for customers | 35,268,019 | 415,139 | 114,662 | 34,436,223 | 149,269 | 130,704 | |||||||||||||||||
Foreign exchange contracts for customers | 1,094,649 | 29,693 | 27,447 | 1,140,665 | 19,465 | 17,341 | |||||||||||||||||
Total trading account assets and liabilities | 444,832 | 142,109 | 168,734 | 148,045 | |||||||||||||||||||
Total free-standing derivative instruments not designated as hedging instruments | $ | 459,881 | $ | 155,330 | $ | 186,707 | $ | 166,317 |
(1) | Derivative assets, except for trading account assets that are recorded as a component of trading account assets on the Company's Unaudited Condensed Consolidated Balance Sheets, are recorded in other assets on the Company’s Unaudited Condensed Consolidated Balance Sheets. |
(2) | Derivative liabilities are recorded in accrued expenses and other liabilities on the Company’s Unaudited Condensed Consolidated Balance Sheets. |
(3) | Changes in fair value are cash settled daily; therefore, there is no ending balance at any given reporting period. |
Interest Income | Interest Expense | |||||||
Interest and fees on loans | Interest on FHLB and other borrowings | |||||||
(In Thousands) | ||||||||
Three Months Ended September 30, 2019 | ||||||||
Total amounts presented in the unaudited condensed consolidated statements of income | $ | 771,245 | $ | 32,975 | ||||
Gains (losses) on fair value hedging relationships: | ||||||||
Interest rate contracts: | ||||||||
Amounts related to interest settlements and amortization on derivatives | $ | — | $ | (136 | ) | |||
Recognized on derivatives | — | 9,369 | ||||||
Recognized on hedged items | — | (8,999 | ) | |||||
Net income (expense) recognized on fair value hedges | $ | — | $ | 234 | ||||
Gain (losses) on cash flow hedging relationships: (1) | ||||||||
Interest rate contracts: | ||||||||
Realized losses reclassified from AOCI into net income (2) | $ | (295 | ) | $ | (254 | ) | ||
Net income (expense) recognized on cash flow hedges | $ | (295 | ) | $ | (254 | ) | ||
Three Months Ended September 30, 2018 | ||||||||
Total amounts presented in the unaudited condensed consolidated statements of income | $ | 751,470 | $ | 37,131 | ||||
Gains (losses) on fair value hedging relationships: | ||||||||
Interest rate contracts: | ||||||||
Amounts related to interest settlements and amortization on derivatives | $ | — | $ | 243 | ||||
Recognized on derivatives | — | (13,181 | ) | |||||
Recognized on hedged items | — | 12,920 | ||||||
Net income (expense) recognized on fair value hedges | $ | — | $ | (18 | ) | |||
Gain (losses) on cash flow hedging relationships: (1) | ||||||||
Interest rate contracts: | ||||||||
Realized losses reclassified from AOCI into net income (2) | $ | (13,782 | ) | $ | (251 | ) | ||
Net income (expense) recognized on cash flow hedges | $ | (13,782 | ) | $ | (251 | ) |
(1) | See Note 10, Comprehensive Income, for gain or loss recognized for cash flow hedges in accumulated other comprehensive income. |
(2) | Pre-tax |
Interest Income | Interest Expense | |||||||
Interest and fees on loans | Interest on FHLB and other borrowings | |||||||
(In Thousands) | ||||||||
Nine Months Ended September 30, 2019 | ||||||||
Total amounts presented in the unaudited condensed consolidated statements of income | $ | 2,359,500 | $ | 104,901 | ||||
Gains (losses) on fair value hedging relationships: | ||||||||
Interest rate contracts: | ||||||||
Amounts related to interest settlements and amortization on derivatives | $ | — | $ | (4,192 | ) | |||
Recognized on derivatives | — | 76,315 | ||||||
Recognized on hedged items | — | (72,510 | ) | |||||
Net income (expense) recognized on fair value hedges | $ | — | $ | (387 | ) | |||
Gain (losses) on cash flow hedging relationships: (1) | ||||||||
Interest rate contracts: | ||||||||
Realized losses reclassified from AOCI into net income (2) | $ | (2,765 | ) | $ | (584 | ) | ||
Net income (expense) recognized on cash flow hedges | $ | (2,765 | ) | $ | (584 | ) | ||
Nine Months Ended September 30, 2018 | ||||||||
Total amounts presented in the unaudited condensed consolidated statements of income | $ | 2,126,411 | $ | 93,799 | ||||
Gains (losses) on fair value hedging relationships: | ||||||||
Interest rate contracts: | ||||||||
Amounts related to interest settlements and amortization on derivatives | $ | — | $ | 3,529 | ||||
Recognized on derivatives | — | (63,679 | ) | |||||
Recognized on hedged items | — | 60,472 | ||||||
Net income (expense) recognized on fair value hedges | $ | — | $ | 322 | ||||
Gain (losses) on cash flow hedging relationships: (1) | ||||||||
Interest rate contracts: | ||||||||
Realized losses reclassified from AOCI into net income (2) | $ | (35,839 | ) | $ | (1,048 | ) | ||
Net income (expense) recognized on cash flow hedges | $ | (35,839 | ) | $ | (1,048 | ) |
(1) | See Note 10, Comprehensive Income, for gain or loss recognized for cash flow hedges in accumulated other comprehensive income. |
(2) | Pre-tax |
September 30, 2019 | ||||||||||||
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of Hedged Liabilities | ||||||||||||
Carrying Amount of Hedged Liabilities | Hedged Items Currently Designated | Hedged Items No Longer Designated | ||||||||||
(In Thousands) | ||||||||||||
FHLB and other borrowings | $ | 3,481,608 | $ | 45,962 | $ | 2,430 |
Gain (Loss) for the | |||||||||||||||||
Condensed Consolidated | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
Statements of Income Caption | 2019 | 2018 | 2019 | 2018 | |||||||||||||
(In Thousands) | |||||||||||||||||
Futures contracts | Mortgage banking income and corporate and correspondent investment sales | $ | 14 | $ | 195 | $ | (1,365 | ) | $ | 400 | |||||||
Interest rate contracts: | |||||||||||||||||
Interest rate lock commitments | Mortgage banking income | 191 | (475 | ) | 2,026 | (281 | ) | ||||||||||
Option contracts related to mortgage servicing rights | Mortgage banking income | 285 | — | 1,313 | (38 | ) | |||||||||||
Forward contracts related to residential mortgage loans held for sale | Mortgage banking income | 530 | 708 | 481 | 553 | ||||||||||||
Interest rate contracts for customers | Corporate and correspondent investment sales | 7,398 | 8,639 | 13,490 | 28,559 | ||||||||||||
Equity contracts: | |||||||||||||||||
Purchased equity option related to equity-linked CDs | Other expense | (2,187 | ) | (4,945 | ) | (7,196 | ) | (20,550 | ) | ||||||||
Written equity option related to equity-linked CDs | Other expense | 1,942 | 4,539 | 6,469 | 18,641 | ||||||||||||
Foreign currency contracts: | |||||||||||||||||
Forward and swap contracts related to commercial loans | Other income | 13,787 | 5,333 | 15,484 | 23,717 | ||||||||||||
Spot contracts related to commercial loans | Other income | (1,263 | ) | (2,649 | ) | (1,065 | ) | (3,768 | ) | ||||||||
Foreign currency exchange contracts for customers | Corporate and correspondent investment sales | 4,085 | 3,514 | 11,547 | 11,811 |
Gross Amounts Recognized | Gross Amounts Offset in the Condensed Consolidated Balance Sheets | Net Amount Presented in the Condensed Consolidated Balance Sheets | Financial Instruments Collateral Received/Pledged (1) | Cash Collateral Received/ Pledged (1) | Net Amount | ||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
September 30, 2019 | |||||||||||||||||||||||
Derivative financial assets: | |||||||||||||||||||||||
Subject to a master netting arrangement | $ | 75,652 | $ | — | $ | 75,652 | $ | — | $ | 32,770 | $ | 42,882 | |||||||||||
Not subject to a master netting arrangement | 414,520 | — | 414,520 | — | — | 414,520 | |||||||||||||||||
Total derivative financial assets | $ | 490,172 | $ | — | $ | 490,172 | $ | — | $ | 32,770 | $ | 457,402 | |||||||||||
Derivative financial liabilities: | |||||||||||||||||||||||
Subject to a master netting arrangement | $ | 111,107 | $ | — | $ | 111,107 | $ | — | $ | 109,616 | $ | 1,491 | |||||||||||
Not subject to a master netting arrangement | 47,642 | — | 47,642 | — | — | 47,642 | |||||||||||||||||
Total derivative financial liabilities | $ | 158,749 | $ | — | $ | 158,749 | $ | — | $ | 109,616 | $ | 49,133 | |||||||||||
December 31, 2018 | |||||||||||||||||||||||
Derivative financial assets: | |||||||||||||||||||||||
Subject to a master netting arrangement | $ | 82,168 | $ | — | $ | 82,168 | $ | — | $ | 18,932 | $ | 63,236 | |||||||||||
Not subject to a master netting arrangement | 120,559 | — | 120,559 | — | — | 120,559 | |||||||||||||||||
Total derivative financial assets | $ | 202,727 | $ | — | $ | 202,727 | $ | — | $ | 18,932 | $ | 183,795 | |||||||||||
Derivative financial liabilities: | |||||||||||||||||||||||
Subject to a master netting arrangement | $ | 99,579 | $ | — | $ | 99,579 | $ | — | $ | 96,917 | $ | 2,662 | |||||||||||
Not subject to a master netting arrangement | 97,155 | — | 97,155 | — | — | 97,155 | |||||||||||||||||
Total derivative financial liabilities | $ | 196,734 | $ | — | $ | 196,734 | $ | — | $ | 96,917 | $ | 99,817 |
(1) | The actual amount of collateral received/pledged is limited to the asset/liability balance and does not include excess collateral received/pledged. When excess collateral exists, the collateral shown in the table above has been allocated based on the percentage of the actual amount of collateral posted. |
Gross Amounts Recognized | Gross Amounts Offset in the Condensed Consolidated Balance Sheets | Net Amount Presented in the Condensed Consolidated Balance Sheets | Financial Instruments Collateral Received/Pledged (1) | Cash Collateral Received/ Pledged (1) | Net Amount | ||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
September 30, 2019 | |||||||||||||||||||||||
Securities purchased under agreements to resell: | |||||||||||||||||||||||
Subject to a master netting arrangement | $ | 2,576,433 | $ | 2,446,653 | $ | 129,780 | $ | 129,780 | $ | — | $ | — | |||||||||||
Securities sold under agreements to repurchase: | |||||||||||||||||||||||
Subject to a master netting arrangement | $ | 2,564,074 | $ | 2,446,653 | $ | 117,421 | $ | 117,421 | $ | — | $ | — | |||||||||||
December 31, 2018 | |||||||||||||||||||||||
Securities purchased under agreements to resell: | |||||||||||||||||||||||
Subject to a master netting arrangement | $ | 246,844 | $ | 136,897 | $ | 109,947 | $ | 109,947 | $ | — | $ | — | |||||||||||
Securities sold under agreements to repurchase: | |||||||||||||||||||||||
Subject to a master netting arrangement | $ | 239,172 | $ | 136,897 | $ | 102,275 | $ | 102,275 | $ | — | $ | — |
(1) | The actual amount of collateral received/pledged is limited to the asset/liability balance and does not include excess collateral received/pledged. When excess collateral exists, the collateral shown in the table above has been allocated based on the percentage of the actual amount of collateral posted. |
Remaining Contractual Maturity of the Agreements | ||||||||||||||||||||
Overnight and Continuous | Up to 30 days | 30 - 90 days | Greater Than 90 days | Total | ||||||||||||||||
(In Thousands) | ||||||||||||||||||||
September 30, 2019 | ||||||||||||||||||||
Securities sold under agreements to repurchase: | ||||||||||||||||||||
U.S. Treasury and other U.S. government agencies | $ | 776,238 | $ | 978,287 | $ | 110,048 | $ | 664,750 | $ | 2,529,323 | ||||||||||
Mortgage-backed securities | — | — | 34,751 | — | 34,751 | |||||||||||||||
Total | $ | 776,238 | $ | 978,287 | $ | 144,799 | $ | 664,750 | $ | 2,564,074 | ||||||||||
December 31, 2018 | ||||||||||||||||||||
Securities sold under agreements to repurchase: | ||||||||||||||||||||
U.S. Treasury and other U.S. government agencies | $ | 190,650 | $ | — | $ | — | $ | — | $ | 190,650 | ||||||||||
Mortgage-backed securities | — | — | 48,522 | — | 48,522 | |||||||||||||||
Total | $ | 190,650 | $ | — | $ | 48,522 | $ | — | $ | 239,172 |
September 30, 2019 | ||||||||||||
Finance | Operating | Total | ||||||||||
(In Thousands) | ||||||||||||
Right-of-use asset | $ | 8,897 | $ | 276,169 | $ | 285,066 | ||||||
Lease liability balance | 12,747 | 317,929 | 330,676 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
2019 | 2019 | |||||||
(In Thousands) | ||||||||
Interest on lease liabilities | $ | 150 | $ | 463 | ||||
Amortization of right-of-use assets | 331 | 992 | ||||||
Finance lease cost | 481 | 1,455 | ||||||
Operating lease cost | 12,949 | 38,753 | ||||||
Variable lease cost | 5,372 | 13,817 | ||||||
Sublease income | (2,137 | ) | (5,689 | ) | ||||
Total lease cost | $ | 16,665 | $ | 48,336 |
Nine Months Ended September 30, | ||||
2019 | ||||
(In Thousands) | ||||
Cash paid for amounts included in measurement of liabilities | ||||
Operating cash flows from operating leases | $ | 40,751 | ||
Operating cash flows from finance leases | 463 | |||
Financing cash flows from finance leases | 1,181 | |||
Right-of-use assets obtained in exchange for lease obligations | ||||
Operating leases | 29,901 | |||
Finance leases | — |
Finance | Operating | Total | |||||||
Weighted-average remaining lease term | 8.6 years | 9.9 years | 9.9 years | ||||||
Weighted-average discount rate | 4.7 | % | 3.3 | % | 3.4 | % |
Finance | Operating | Total | ||||||||||
(In Thousands) | ||||||||||||
Remainder of 2019 | $ | 553 | $ | 13,857 | $ | 14,410 | ||||||
2020 | 2,233 | 54,540 | 56,773 | |||||||||
2021 | 2,143 | 50,448 | 52,591 | |||||||||
2022 | 1,923 | 45,444 | 47,367 | |||||||||
2023 | 1,501 | 39,568 | 41,069 | |||||||||
2024 | 1,410 | 30,732 | 32,142 | |||||||||
Thereafter | 5,696 | 137,660 | 143,356 | |||||||||
Total | $ | 15,459 | $ | 372,249 | $ | 387,708 |
September 30, 2019 | ||||||||||||
Finance | Operating | Total | ||||||||||
(In Thousands) | ||||||||||||
Total undiscounted lease liability | $ | 15,459 | $ | 372,249 | $ | 387,708 | ||||||
Less: imputed interest | 2,712 | 54,320 | 57,032 | |||||||||
Total discounted lease liability | $ | 12,747 | $ | 317,929 | $ | 330,676 |
September 30, 2019 | December 31, 2018 | ||||||
(In Thousands) | |||||||
Commitments to extend credit | $ | 27,374,025 | $ | 28,827,897 | |||
Standby and commercial letters of credit | 988,247 | 1,249,205 |
Fair Value Measurements at the End of the Reporting Period Using | |||||||||||||||
Fair Value | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||
September 30, 2019 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
(In Thousands) | |||||||||||||||
Recurring fair value measurements | |||||||||||||||
Assets: | |||||||||||||||
Trading account assets: | |||||||||||||||
U.S. Treasury and other U.S. government agencies | $ | 118,767 | $ | 118,767 | $ | — | $ | — | |||||||
State and political subdivisions | 401 | — | 401 | — | |||||||||||
Interest rate contracts | 415,139 | — | 415,139 | — | |||||||||||
Foreign exchange contracts | 29,693 | — | 29,693 | — | |||||||||||
Total trading account assets | 564,000 | 118,767 | 445,233 | — | |||||||||||
Debt securities available for sale: | |||||||||||||||
U.S. Treasury and other U.S. government agencies | 3,168,501 | 2,600,606 | 567,895 | — | |||||||||||
Mortgage-backed securities | 1,485,825 | — | 1,485,825 | — | |||||||||||
Collateralized mortgage obligations | 2,957,461 | — | 2,957,461 | — | |||||||||||
States and political subdivisions | 803 | — | 803 | — | |||||||||||
Total debt securities available for sale | 7,612,590 | 2,600,606 | 5,011,984 | — | |||||||||||
Loans held for sale | 134,314 | — | 134,314 | — | |||||||||||
Derivative assets: | |||||||||||||||
Interest rate contracts | 34,764 | 234 | 30,492 | 4,038 | |||||||||||
Equity contracts | 6,989 | — | 6,989 | — | |||||||||||
Foreign exchange contracts | 3,587 | — | 3,587 | — | |||||||||||
Total derivative assets | 45,340 | 234 | 41,068 | 4,038 | |||||||||||
Other assets: | |||||||||||||||
Equity securities | 23,522 | 23,522 | — | — | |||||||||||
MSR | 37,265 | — | — | 37,265 | |||||||||||
SBIC | 120,248 | — | — | 120,248 | |||||||||||
Liabilities: | |||||||||||||||
Trading account liabilities: | |||||||||||||||
U.S. Treasury and other U.S. government agencies | $ | 45 | $ | 45 | $ | — | $ | — | |||||||
Interest rate contracts | 114,662 | — | 114,662 | — | |||||||||||
Foreign exchange contracts | 27,447 | — | 27,447 | — | |||||||||||
Total trading account liabilities | 142,154 | 45 | 142,109 | — | |||||||||||
Derivative liabilities: | |||||||||||||||
Interest rate contracts | 4,024 | — | 4,024 | — | |||||||||||
Equity contracts | 5,966 | — | 5,966 | — | |||||||||||
Foreign exchange contracts | 1,156 | — | 1,156 | — | |||||||||||
Total derivative liabilities | 11,146 | — | 11,146 | — |
Fair Value Measurements at the End of the Reporting Period Using | |||||||||||||||
Fair Value | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||
December 31, 2018 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
(In Thousands) | |||||||||||||||
Recurring fair value measurements | |||||||||||||||
Assets: | |||||||||||||||
Trading account assets: | |||||||||||||||
U.S. Treasury and other U.S. government agencies | $ | 68,922 | $ | 68,922 | $ | — | $ | — | |||||||
Interest rate contracts | 149,269 | — | 149,269 | — | |||||||||||
Foreign exchange contracts | 19,465 | — | 19,465 | — | |||||||||||
Total trading account assets | 237,656 | 68,922 | 168,734 | — | |||||||||||
Debt securities available for sale: | |||||||||||||||
U.S. Treasury and other U.S. government agencies | 5,431,467 | 4,746,335 | 685,132 | — | |||||||||||
Mortgage-backed securities | 2,129,821 | — | 2,129,821 | — | |||||||||||
Collateralized mortgage obligations | 3,418,979 | — | 3,418,979 | — | |||||||||||
States and political subdivisions | 949 | — | 949 | — | |||||||||||
Total debt securities available for sale | 10,981,216 | 4,746,335 | 6,234,881 | — | |||||||||||
Loans held for sale | 68,766 | — | 68,766 | — | |||||||||||
Derivative assets: | |||||||||||||||
Interest rate contracts | 18,045 | — | 16,033 | 2,012 | |||||||||||
Equity contracts | 14,185 | — | 14,185 | — | |||||||||||
Foreign exchange contracts | 1,763 | — | 1,763 | — | |||||||||||
Total derivative assets | 33,993 | — | 31,981 | 2,012 | |||||||||||
Other assets: | |||||||||||||||
Equity securities | 17,839 | 17,839 | — | — | |||||||||||
MSR | 51,539 | — | — | 51,539 | |||||||||||
SBIC | 80,074 | — | — | 80,074 | |||||||||||
Liabilities: | |||||||||||||||
Trading account liabilities: | |||||||||||||||
Interest rate contracts | $ | 130,704 | $ | — | $ | 130,704 | $ | — | |||||||
Foreign exchange contracts | 17,341 | — | 17,341 | — | |||||||||||
Total trading account liabilities | 148,045 | — | 148,045 | — | |||||||||||
Derivative liabilities: | |||||||||||||||
Interest rate contracts | 31,438 | — | 31,438 | — | |||||||||||
Equity contracts | 12,434 | — | 12,434 | — | |||||||||||
Foreign exchange contracts | 1,111 | — | 1,111 | — | |||||||||||
Total derivative liabilities | 44,983 | — | 44,983 | — |
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||
Three Months Ended September 30, | Interest Rate Contracts, net | Other Assets - MSR | Other Assets - SBIC | ||||||||
(In Thousands) | |||||||||||
Balance, June 30, 2018 | $ | 2,610 | $ | 54,276 | $ | 41,513 | |||||
Transfers into Level 3 | — | — | — | ||||||||
Transfers out of Level 3 | — | — | — | ||||||||
Total gains or losses (realized/unrealized): | |||||||||||
Included in earnings (1) | (475 | ) | (558 | ) | — | ||||||
Included in other comprehensive income | — | — | — | ||||||||
Purchases, issuances, sales and settlements: | |||||||||||
Purchases | — | — | 1,209 | ||||||||
Issuances | — | 1,594 | — | ||||||||
Sales | — | — | — | ||||||||
Settlements | — | — | — | ||||||||
Balance, September 30, 2018 | $ | 2,135 | $ | 55,312 | $ | 42,722 | |||||
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at September 30, 2018 | $ | (475 | ) | $ | (558 | ) | $ | — | |||
Balance, June 30, 2019 | $ | 3,847 | $ | 41,966 | $ | 102,065 | |||||
Transfers into Level 3 | — | — | — | ||||||||
Transfers out of Level 3 | — | — | — | ||||||||
Total gains or losses (realized/unrealized): | |||||||||||
Included in earnings (1) | 191 | (6,301 | ) | 10,239 | |||||||
Included in other comprehensive income | — | — | — | ||||||||
Purchases, issuances, sales and settlements: | |||||||||||
Purchases | — | — | 7,944 | ||||||||
Issuances | — | 1,600 | — | ||||||||
Sales | — | — | — | ||||||||
Settlements | — | — | — | ||||||||
Balance, September 30, 2019 | $ | 4,038 | $ | 37,265 | $ | 120,248 | |||||
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at September 30, 2019 | $ | 191 | $ | (6,301 | ) | $ | 10,239 |
(1) | Included in noninterest income in the Unaudited Condensed Consolidated Statements of Income. |
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||
Nine Months Ended September 30, | Interest Rate Contracts, net | Other Assets - MSR | Other Assets - SBIC | ||||||||
(In Thousands) | |||||||||||
Balance, December 31, 2017 | $ | 2,416 | $ | 49,597 | $ | 45,042 | |||||
Transfers into Level 3 | — | — | — | ||||||||
Transfers out of Level 3 | — | — | — | ||||||||
Total gains or losses (realized/unrealized): | |||||||||||
Included in earnings (1) | (281 | ) | 449 | (6,673 | ) | ||||||
Included in other comprehensive income | — | — | — | ||||||||
Purchases, issuances, sales and settlements: | |||||||||||
Purchases | — | — | 4,353 | ||||||||
Issuances | — | 5,266 | — | ||||||||
Sales | — | — | — | ||||||||
Settlements | — | — | — | ||||||||
Balance, September 30, 2018 | $ | 2,135 | $ | 55,312 | $ | 42,722 | |||||
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at September 30, 2018 | $ | (281 | ) | $ | 449 | $ | (6,673 | ) | |||
Balance, December 31, 2018 | $ | 2,012 | $ | 51,539 | $ | 80,074 | |||||
Transfers into Level 3 | — | — | — | ||||||||
Transfers out of Level 3 | — | — | — | ||||||||
Total gains or losses (realized/unrealized): | |||||||||||
Included in earnings (1) | 2,026 | (18,579 | ) | 24,310 | |||||||
Included in other comprehensive income | — | — | — | ||||||||
Purchases, issuances, sales and settlements: | |||||||||||
Purchases | — | — | 15,864 | ||||||||
Issuances | — | 4,305 | — | ||||||||
Sales | — | — | — | ||||||||
Settlements | — | — | — | ||||||||
Balance, September 30, 2019 | $ | 4,038 | $ | 37,265 | $ | 120,248 | |||||
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at September 30, 2019 | $ | 2,026 | $ | (18,579 | ) | $ | 24,310 |
(1) | Included in noninterest income in the Unaudited Condensed Consolidated Statements of Income. |
Fair Value Measurements at the End of the Reporting Period Using | |||||||||||||||||||||||
Fair Value | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | Total Gains (Losses) | |||||||||||||||||||
September 30, 2019 | (Level 1) | (Level 2) | (Level 3) | Three Months Ended September 30, 2019 | Nine Months Ended September 30, 2019 | ||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Nonrecurring fair value measurements | |||||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Debt securities held to maturity | $ | 1,036 | $ | — | $ | — | $ | 1,036 | $ | — | $ | (113 | ) | ||||||||||
Impaired loans (1) | 6,270 | — | — | 6,270 | (69,615 | ) | (113,140 | ) | |||||||||||||||
OREO | 18,931 | — | — | 18,931 | (1,169 | ) | (3,928 | ) | |||||||||||||||
Fair Value Measurements at the End of the Reporting Period Using | |||||||||||||||||||||||
Fair Value | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | Total Gains (Losses) | |||||||||||||||||||
September 30, 2018 | (Level 1) | (Level 2) | (Level 3) | Three Months Ended September 30, 2018 | Nine Months Ended September 30, 2018 | ||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Nonrecurring fair value measurements | |||||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Debt securities held to maturity | $ | 3,955 | $ | — | $ | — | $ | 3,955 | $ | (283 | ) | $ | (592 | ) | |||||||||
Impaired loans (1) | 11,875 | — | — | 11,875 | (17,225 | ) | (28,666 | ) | |||||||||||||||
OREO | 18,706 | — | — | 18,706 | (1,322 | ) | (2,407 | ) |
(1) | Total gains (losses) represent charge-offs on impaired loans for which adjustments are based on the appraised value of the collateral. |
Quantitative Information about Level 3 Fair Value Measurements | |||||||||
Fair Value at | Range of Unobservable Inputs | ||||||||
September 30, 2019 | Valuation Technique | Unobservable Input(s) | (Weighted Average) | ||||||
(In Thousands) | |||||||||
Recurring fair value measurements: | |||||||||
Interest rate contracts, net | $ | 4,038 | Discounted cash flow | Closing ratios (pull-through) | 8.8% - 99.9% (64.6%) | ||||
Cap grids | 0.2% - 2.3% (0.9%) | ||||||||
Other assets - MSRs | 37,265 | Discounted cash flow | Option adjusted spread | 6.0% - 9.0% (6.4%) | |||||
Constant prepayment rate or life speed | 0.0% - 89.7% (17.4%) | ||||||||
Cost to service | $65 - $4,000 ($90) | ||||||||
Other assets - SBIC investments | 120,248 | Transaction price | Transaction price | N/A | |||||
Nonrecurring fair value measurements: | |||||||||
Debt securities held to maturity | $ | 1,036 | Discounted cash flow | Prepayment rate | 9.9% | ||||
Default rate | 6.0% | ||||||||
Loss severity | 61.9% | ||||||||
Impaired loans | 6,270 | Appraised value | Appraised value | 0.0% - 70.0% (11.8%) | |||||
OREO | 18,931 | Appraised value | Appraised value | 8.0% (1) |
(1) | Represents discount to appraised value for estimated costs to sell. |
Quantitative Information about Level 3 Fair Value Measurements | |||||||||
Fair Value at | Range of Unobservable Inputs | ||||||||
December 31, 2018 | Valuation Technique | Unobservable Input(s) | (Weighted Average) | ||||||
(In Thousands) | |||||||||
Recurring fair value measurements: | |||||||||
Interest rate contracts, net | $ | 2,012 | Discounted cash flow | Closing ratios (pull-through) | 15.0% - 99.6% (61.5%) | ||||
Cap grids | 0.5% - 3.1% (1.0%) | ||||||||
Other assets - MSRs | 51,539 | Discounted cash flow | Option adjusted spread | 6.3% - 8.5% (6.5%) | |||||
Constant prepayment rate or life speed | 0.0% - 43.6% (9.6%) | ||||||||
Cost to service | $65 - $4,000 ($84) | ||||||||
Other assets - SBIC investments | 80,074 | Transaction price | Transaction price | N/A | |||||
Nonrecurring fair value measurements: | |||||||||
Debt securities held to maturity | $ | 4,380 | Discounted cash flow | Prepayment rate | 8.4% | ||||
Default rate | 9.4% | ||||||||
Loss severity | 83.5% | ||||||||
Impaired loans | 57,968 | Appraised value | Appraised value | 0.0% - 70.0% (14.6%) | |||||
OREO | 16,869 | Appraised value | Appraised value | 8.0% (1) |
(1) | Represents discount to appraised value for estimated costs to sell. |
September 30, 2019 | |||||||||||||||||||
Carrying Amount | Estimated Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||
(In Thousands) | |||||||||||||||||||
Financial Instruments: | |||||||||||||||||||
Assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 6,473,599 | $ | 6,473,599 | $ | 6,473,599 | $ | — | $ | — | |||||||||
Debt securities held to maturity | 6,334,634 | 6,514,496 | 1,348,822 | 4,421,416 | 744,258 | ||||||||||||||
Loans, net | 62,378,380 | 60,545,039 | — | — | 60,545,039 | ||||||||||||||
Liabilities: | |||||||||||||||||||
Deposits | $ | 73,569,442 | $ | 73,602,165 | $ | — | $ | 73,602,165 | $ | — | |||||||||
FHLB and other borrowings | 3,709,949 | 3,732,704 | — | 3,732,704 | — | ||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 117,421 | 117,421 | — | 117,421 | — |
December 31, 2018 | |||||||||||||||||||
Carrying Amount | Estimated Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||
(In Thousands) | |||||||||||||||||||
Financial Instruments: | |||||||||||||||||||
Assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 3,332,626 | $ | 3,332,626 | $ | 3,332,626 | $ | — | $ | — | |||||||||
Debt securities held to maturity | 2,885,613 | 2,925,420 | — | 2,106,510 | 818,910 | ||||||||||||||
Loans, net | 64,301,312 | 61,186,996 | — | — | 61,186,996 | ||||||||||||||
Liabilities: | |||||||||||||||||||
Deposits | $ | 72,167,987 | $ | 72,175,418 | $ | — | $ | 72,175,418 | $ | — | |||||||||
FHLB and other borrowings | 3,987,590 | 3,935,945 | — | 3,935,945 | — | ||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 102,275 | 102,275 | — | 102,275 | — |
Aggregate Fair Value | Aggregate Unpaid Principal Balance | Difference | |||||||||
(In Thousands) | |||||||||||
September 30, 2019 | |||||||||||
Residential mortgage loans held for sale | $ | 134,314 | $ | 130,043 | $ | 4,271 | |||||
December 31, 2018 | |||||||||||
Residential mortgage loans held for sale | $ | 68,766 | $ | 66,052 | $ | 2,714 |
Three Months Ended September 30, | |||||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||
Pretax | Tax Expense/ (Benefit) | After-tax | Pretax | Tax Expense/ (Benefit) | After-tax | ||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||
Unrealized holding gains (losses) arising during period from debt securities available for sale | $ | 42,553 | $ | 10,089 | $ | 32,464 | $ | (40,831 | ) | $ | (9,642 | ) | $ | (31,189 | ) | ||||||||
Less: reclassification adjustment for net gains on sale of debt securities in net income | 21,003 | 4,980 | 16,023 | — | — | — | |||||||||||||||||
Net change in unrealized gains (losses) on debt securities available for sale | 21,550 | 5,109 | 16,441 | (40,831 | ) | (9,642 | ) | (31,189 | ) | ||||||||||||||
Change in unamortized net holding losses on debt securities held to maturity | 2,915 | 692 | 2,223 | 2,604 | 615 | 1,989 | |||||||||||||||||
Unamortized unrealized net holding losses on debt securities available for sale transferred to debt securities held to maturity | — | — | — | — | — | — | |||||||||||||||||
Less: non-credit related impairment on debt securities held to maturity | — | — | — | 135 | 32 | 103 | |||||||||||||||||
Change in unamortized non-credit related impairment on debt securities held to maturity | 229 | 54 | 175 | 271 | 63 | 208 | |||||||||||||||||
Net change in unamortized holding gains on debt securities held to maturity | 3,144 | 746 | 2,398 | 2,740 | 646 | 2,094 | |||||||||||||||||
Unrealized holding gains arising during period from cash flow hedge instruments | 44,121 | 10,459 | 33,662 | 15,187 | 4,191 | 10,996 | |||||||||||||||||
Change in defined benefit plans | — | — | — | — | — | — | |||||||||||||||||
Other comprehensive income (loss) | $ | 68,815 | $ | 16,314 | $ | 52,501 | $ | (22,904 | ) | $ | (4,805 | ) | $ | (18,099 | ) | ||||||||
Nine Months Ended September 30, | |||||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||
Pretax | Tax Expense/ (Benefit) | After-tax | Pretax | Tax Expense/ (Benefit) | After-tax | ||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||
Unrealized holding gains (losses) arising during period from debt securities available for sale | $ | 222,660 | $ | 52,792 | $ | 169,868 | $ | (139,236 | ) | $ | (32,916 | ) | $ | (106,320 | ) | ||||||||
Less: reclassification adjustment for net gains on sale of debt securities in net income | 29,961 | 7,104 | 22,857 | — | — | — | |||||||||||||||||
Net change in unrealized gains (losses) on debt securities available for sale | 192,699 | 45,688 | 147,011 | (139,236 | ) | (32,916 | ) | (106,320 | ) | ||||||||||||||
Change in unamortized net holding losses on debt securities held to maturity | 7,741 | 1,836 | 5,905 | 8,538 | 2,016 | 6,522 | |||||||||||||||||
Unamortized unrealized net holding losses on debt securities available for sale transferred to debt securities held to maturity | — | — | — | (39,904 | ) | (9,417 | ) | (30,487 | ) | ||||||||||||||
Less: non-credit related impairment on debt securities held to maturity | 108 | 26 | 82 | 397 | 94 | 303 | |||||||||||||||||
Change in unamortized non-credit related impairment on debt securities held to maturity | 885 | 210 | 675 | 815 | 192 | 623 | |||||||||||||||||
Net change in unamortized holding gains (losses) on debt securities held to maturity | 8,518 | 2,020 | 6,498 | (30,948 | ) | (7,303 | ) | (23,645 | ) | ||||||||||||||
Unrealized holding gains arising during period from cash flow hedge instruments | 172,571 | 40,906 | 131,665 | 26,894 | 7,554 | 19,340 | |||||||||||||||||
Change in defined benefit plans | 4,089 | 970 | 3,119 | (4,425 | ) | (1,046 | ) | (3,379 | ) | ||||||||||||||
Other comprehensive income (loss) | $ | 377,877 | $ | 89,584 | $ | 288,293 | $ | (147,715 | ) | $ | (33,711 | ) | $ | (114,004 | ) |
Unrealized Gains (Losses) on Debt Securities Available for Sale and Transferred to Held to Maturity | Accumulated Gains (Losses) on Cash Flow Hedging Instruments | Defined Benefit Plan Adjustment | Unamortized Impairment Losses on Debt Securities Held to Maturity | Total | |||||||||||||||
(In Thousands) | |||||||||||||||||||
Balance, December 31, 2017 | $ | (132,821 | ) | $ | (24,765 | ) | $ | (34,228 | ) | $ | (5,591 | ) | $ | (197,405 | ) | ||||
Cumulative effect of adoption of ASU 2016-01 | (13 | ) | — | — | — | (13 | ) | ||||||||||||
$ | (132,834 | ) | $ | (24,765 | ) | $ | (34,228 | ) | $ | (5,591 | ) | $ | (197,418 | ) | |||||
Other comprehensive loss before reclassifications | (136,807 | ) | (8,838 | ) | — | (303 | ) | (145,948 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 6,522 | 28,178 | (3,379 | ) | 623 | 31,944 | |||||||||||||
Net current period other comprehensive (loss) income | (130,285 | ) | 19,340 | (3,379 | ) | 320 | (114,004 | ) | |||||||||||
Balance, September 30, 2018 | $ | (263,119 | ) | $ | (5,425 | ) | $ | (37,607 | ) | $ | (5,271 | ) | $ | (311,422 | ) | ||||
Balance, December 31, 2018 | $ | (158,433 | ) | $ | 6,175 | $ | (29,495 | ) | $ | (5,095 | ) | $ | (186,848 | ) | |||||
Cumulative effect of adoption of ASUs (1) | (25,844 | ) | (1,040 | ) | (7,351 | ) | (1,201 | ) | (35,436 | ) | |||||||||
$ | (184,277 | ) | $ | 5,135 | $ | (36,846 | ) | $ | (6,296 | ) | $ | (222,284 | ) | ||||||
Other comprehensive income (loss) before reclassifications | 169,868 | 129,110 | — | (82 | ) | 298,896 | |||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (16,952 | ) | 2,555 | 3,119 | 675 | (10,603 | ) | ||||||||||||
Net current period other comprehensive income | 152,916 | 131,665 | 3,119 | 593 | 288,293 | ||||||||||||||
Balance, September 30, 2019 | $ | (31,361 | ) | $ | 136,800 | $ | (33,727 | ) | $ | (5,703 | ) | $ | 66,009 |
(1) | Related to the Company's adoption of ASU 2017-12 and ASU 2018-02 on January 1, 2019. See Note 1, Basis of Presentation, for additional information. |
Details About Accumulated Other Comprehensive Income (Loss) Components | Amounts Reclassified From Accumulated Other Comprehensive Income (Loss) (1) | Condensed Consolidated Statements of Income Caption | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||
(In Thousands) | ||||||||||||||||||
Unrealized Gains (Losses) on Debt Securities Available for Sale and Transferred to Held to Maturity | $ | 21,003 | $ | — | $ | 29,961 | $ | — | Investment securities gains, net | |||||||||
(2,915 | ) | (2,604 | ) | (7,741 | ) | (8,538 | ) | Interest on debt securities held to maturity | ||||||||||
18,088 | (2,604 | ) | 22,220 | (8,538 | ) | |||||||||||||
(4,288 | ) | 615 | (5,268 | ) | 2,016 | Income tax (expense) benefit | ||||||||||||
$ | 13,800 | $ | (1,989 | ) | $ | 16,952 | $ | (6,522 | ) | Net of tax | ||||||||
Accumulated Gains (Losses) on Cash Flow Hedging Instruments | $ | (295 | ) | $ | (13,782 | ) | $ | (2,765 | ) | $ | (35,839 | ) | Interest and fees on loans | |||||
(254 | ) | (251 | ) | (584 | ) | (1,048 | ) | Interest on FHLB and other borrowings | ||||||||||
(549 | ) | (14,033 | ) | (3,349 | ) | (36,887 | ) | |||||||||||
130 | 3,314 | 794 | 8,709 | Income tax benefit | ||||||||||||||
$ | (419 | ) | $ | (10,719 | ) | $ | (2,555 | ) | $ | (28,178 | ) | Net of tax | ||||||
Defined Benefit Plan Adjustment | $ | — | $ | — | $ | (4,089 | ) | $ | 4,425 | (2) | ||||||||
— | — | 970 | (1,046 | ) | Income tax benefit (expense) | |||||||||||||
$ | — | $ | — | $ | (3,119 | ) | $ | 3,379 | Net of tax | |||||||||
Unamortized Impairment Losses on Debt Securities Held to Maturity | $ | (229 | ) | $ | (271 | ) | $ | (885 | ) | $ | (815 | ) | Interest on debt securities held to maturity | |||||
54 | 63 | 210 | 192 | Income tax benefit | ||||||||||||||
$ | (175 | ) | $ | (208 | ) | $ | (675 | ) | $ | (623 | ) | Net of tax |
(1) | Amounts in parentheses indicate debits to the Unaudited Condensed Consolidated Statements of Income. |
(2) | These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 17, Benefit Plans, in the Notes to the December 31, 2018, Consolidated Financial Statements for additional details). |
Nine Months Ended September 30, | |||||||
2019 | 2018 | ||||||
(In Thousands) | |||||||
Supplemental disclosures of cash flow information: | |||||||
Interest paid | $ | 686,126 | $ | 387,311 | |||
Net income taxes paid | 94,033 | 121,156 | |||||
Supplemental schedule of noncash investing and financing activities: | |||||||
Transfer of loans and loans held for sale to OREO | $ | 25,067 | $ | 17,249 | |||
Transfer of available for sale debt securities to held to maturity debt securities | — | 1,017,275 | |||||
Transfer of loans to loans held for sale | 1,196,883 | — |
Nine Months Ended September 30, | |||||||
2019 | 2018 | ||||||
(In Thousands) | |||||||
Cash and cash equivalents | $ | 6,473,599 | $ | 3,526,911 | |||
Restricted cash in other assets | 165,584 | 142,690 | |||||
Total cash, cash equivalents and restricted cash shown in the statement of cash flows | $ | 6,639,183 | $ | 3,669,601 |
Three Months Ended September 30, 2019 | |||||||||||||||||||||||
Commercial Banking and Wealth | Retail Banking | Corporate and Investment Banking | Treasury | Corporate Support and Other | Consolidated | ||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Net interest income (expense) | $ | 280,377 | $ | 316,978 | $ | 26,647 | $ | (40,912 | ) | $ | 57,951 | $ | 641,041 | ||||||||||
Allocated provision for loan losses | 33,653 | 69,885 | 13,955 | 491 | 22,645 | 140,629 | |||||||||||||||||
Noninterest income | 67,001 | 127,109 | 58,961 | 24,882 | 43,366 | 321,319 | |||||||||||||||||
Noninterest expense | 172,879 | 309,074 | 39,311 | 5,009 | 72,614 | 598,887 | |||||||||||||||||
Net income (loss) before income tax expense (benefit) | 140,846 | 65,128 | 32,342 | (21,530 | ) | 6,058 | 222,844 | ||||||||||||||||
Income tax expense (benefit) | 29,578 | 13,677 | 6,792 | (4,521 | ) | (5,627 | ) | 39,899 | |||||||||||||||
Net income (loss) | 111,268 | 51,451 | 25,550 | (17,009 | ) | 11,685 | 182,945 | ||||||||||||||||
Less: net income attributable to noncontrolling interests | 87 | — | — | 400 | 27 | 514 | |||||||||||||||||
Net income (loss) attributable to BBVA USA Bancshares, Inc. | $ | 111,181 | $ | 51,451 | $ | 25,550 | $ | (17,409 | ) | $ | 11,658 | $ | 182,431 | ||||||||||
Average assets | $ | 39,756,495 | $ | 19,110,008 | $ | 7,855,727 | $ | 19,898,446 | $ | 8,321,780 | $ | 94,942,456 |
Three Months Ended September 30, 2018 | |||||||||||||||||||||||
Commercial Banking and Wealth | Retail Banking | Corporate and Investment Banking | Treasury | Corporate Support and Other | Consolidated | ||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Net interest income (expense) | $ | 342,790 | $ | 378,064 | $ | 48,591 | $ | (24,882 | ) | $ | (86,277 | ) | $ | 658,286 | |||||||||
Allocated provision (credit) for loan losses | 37,897 | 61,060 | (15,807 | ) | (553 | ) | 12,367 | 94,964 | |||||||||||||||
Noninterest income | 63,874 | 115,821 | 32,223 | 5,235 | 41,306 | 258,459 | |||||||||||||||||
Noninterest expense | 173,121 | 293,720 | 43,379 | 7,109 | 88,181 | 605,510 | |||||||||||||||||
Net income (loss) before income tax expense (benefit) | 195,646 | 139,105 | 53,242 | (26,203 | ) | (145,519 | ) | 216,271 | |||||||||||||||
Income tax expense (benefit) | 41,086 | 29,212 | 11,181 | (5,503 | ) | (34,220 | ) | 41,756 | |||||||||||||||
Net income (loss) | 154,560 | 109,893 | 42,061 | (20,700 | ) | (111,299 | ) | 174,515 | |||||||||||||||
Less: net income attributable to noncontrolling interests | 24 | — | — | 405 | (3 | ) | 426 | ||||||||||||||||
Net income (loss) attributable to BBVA USA Bancshares, Inc. | $ | 154,536 | $ | 109,893 | $ | 42,061 | $ | (21,105 | ) | $ | (111,296 | ) | $ | 174,089 | |||||||||
Average assets | $ | 39,016,626 | $ | 18,839,497 | $ | 8,311,665 | $ | 16,257,647 | $ | 7,693,233 | $ | 90,118,668 |
Nine Months Ended September 30, 2019 | |||||||||||||||||||||||
Commercial Banking and Wealth | Retail Banking | Corporate and Investment Banking | Treasury | Corporate Support and Other | Consolidated | ||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Net interest income (expense) | $ | 878,854 | $ | 1,000,057 | $ | 92,895 | $ | (79,718 | ) | $ | 91,791 | $ | 1,983,879 | ||||||||||
Allocated provision (credit) for loan losses | 169,770 | 229,561 | 39,210 | (147 | ) | 39,545 | 477,939 | ||||||||||||||||
Noninterest income | 195,224 | 363,187 | 147,865 | 40,027 | 117,057 | 863,360 | |||||||||||||||||
Noninterest expense | 525,797 | 914,767 | 118,373 | 15,013 | 205,224 | 1,779,174 | |||||||||||||||||
Net income (loss) before income tax expense (benefit) | 378,511 | 218,916 | 83,177 | (54,557 | ) | (35,921 | ) | 590,126 | |||||||||||||||
Income tax expense (benefit) | 79,487 | 45,972 | 17,467 | (11,457 | ) | (25,455 | ) | 106,014 | |||||||||||||||
Net income (loss) | 299,024 | 172,944 | 65,710 | (43,100 | ) | (10,466 | ) | 484,112 | |||||||||||||||
Less: net income attributable to noncontrolling interests | 349 | — | — | 1,207 | 113 | 1,669 | |||||||||||||||||
Net income (loss) attributable to BBVA USA Bancshares, Inc. | $ | 298,675 | $ | 172,944 | $ | 65,710 | $ | (44,307 | ) | $ | (10,579 | ) | $ | 482,443 | |||||||||
Average assets | $ | 39,886,487 | $ | 19,145,739 | $ | 7,770,444 | $ | 18,713,337 | $ | 8,284,884 | $ | 93,800,891 |
Nine Months Ended September 30, 2018 | |||||||||||||||||||||||
Commercial Banking and Wealth | Retail Banking | Corporate and Investment Banking | Treasury | Corporate Support and Other | Consolidated | ||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Net interest income (expense) | $ | 1,003,541 | $ | 1,085,582 | $ | 144,509 | $ | (56,237 | ) | $ | (253,005 | ) | $ | 1,924,390 | |||||||||
Allocated provision (credit) for loan losses | 75,166 | 120,594 | (45,630 | ) | (1,063 | ) | 94,206 | 243,273 | |||||||||||||||
Noninterest income | 188,012 | 340,317 | 122,204 | 17,133 | 118,637 | 786,303 | |||||||||||||||||
Noninterest expense | 506,149 | 871,560 | 119,763 | 17,912 | 232,584 | 1,747,968 | |||||||||||||||||
Net income (loss) before income tax expense (benefit) | 610,238 | 433,745 | 192,580 | (55,953 | ) | (461,158 | ) | 719,452 | |||||||||||||||
Income tax expense (benefit) | 128,150 | 91,086 | 40,442 | (11,750 | ) | (96,079 | ) | 151,849 | |||||||||||||||
Net income (loss) | 482,088 | 342,659 | 152,138 | (44,203 | ) | (365,079 | ) | 567,603 | |||||||||||||||
Less: net income attributable to noncontrolling interests | 282 | — | — | 1,227 | (27 | ) | 1,482 | ||||||||||||||||
Net income (loss) attributable to BBVA USA Bancshares, Inc. | $ | 481,806 | $ | 342,659 | $ | 152,138 | $ | (45,430 | ) | $ | (365,052 | ) | $ | 566,121 | |||||||||
Average assets | $ | 38,332,544 | $ | 18,538,673 | $ | 8,346,850 | $ | 16,096,911 | $ | 7,667,498 | $ | 88,982,476 |
Commercial Banking and Wealth | Retail Banking | Corporate and Investment Banking | Treasury and Corporate Support and Other | Total | ||||||||||||||||
(In Thousands) | ||||||||||||||||||||
Three Months Ended September 30, 2019 | ||||||||||||||||||||
Service charges on deposit accounts | $ | 12,750 | $ | 50,700 | $ | 1,693 | $ | — | $ | 65,143 | ||||||||||
Card and merchant processing fees | 9,698 | 36,806 | — | 3,881 | 50,385 | |||||||||||||||
Investment services sales fees | 29,287 | — | — | — | 29,287 | |||||||||||||||
Money transfer income | — | — | — | 26,020 | 26,020 | |||||||||||||||
Investment banking and advisory fees | — | — | 28,324 | — | 28,324 | |||||||||||||||
Asset management fees | 11,405 | — | — | — | 11,405 | |||||||||||||||
63,140 | 87,506 | 30,017 | 29,901 | 210,564 | ||||||||||||||||
Other revenues (1) | 3,861 | 39,603 | 28,944 | 38,347 | 110,755 | |||||||||||||||
Total noninterest income | $ | 67,001 | $ | 127,109 | $ | 58,961 | $ | 68,248 | $ | 321,319 | ||||||||||
Three Months Ended September 30, 2018 | ||||||||||||||||||||
Service charges on deposit accounts | $ | 11,911 | $ | 46,653 | $ | 1,761 | $ | — | $ | 60,325 | ||||||||||
Card and merchant processing fees | 7,113 | 33,786 | — | 3,320 | 44,219 | |||||||||||||||
Investment services sales fees | 28,286 | — | — | — | 28,286 | |||||||||||||||
Money transfer income | — | — | — | 23,441 | 23,441 | |||||||||||||||
Investment banking and advisory fees | — | — | 13,956 | — | 13,956 | |||||||||||||||
Asset management fees | 11,143 | — | — | — | 11,143 | |||||||||||||||
58,453 | 80,439 | 15,717 | 26,761 | 181,370 | ||||||||||||||||
Other revenues (1) | 5,421 | 35,382 | 16,506 | 19,780 | 77,089 | |||||||||||||||
Total noninterest income | $ | 63,874 | $ | 115,821 | $ | 32,223 | $ | 46,541 | $ | 258,459 |
(1) | Other revenues primarily relate to revenues not derived from contracts with customers. |
Commercial Banking and Wealth | Retail Banking | Corporate and Investment Banking | Treasury and Corporate Support and Other | Total | ||||||||||||||||
(In Thousands) | ||||||||||||||||||||
Nine Months Ended September 30, 2019 | ||||||||||||||||||||
Service charges on deposit accounts | $ | 37,784 | $ | 143,002 | $ | 4,996 | $ | — | $ | 185,782 | ||||||||||
Card and merchant processing fees | 27,158 | 108,302 | — | 11,282 | 146,742 | |||||||||||||||
Investment services sales fees | 87,316 | — | — | — | 87,316 | |||||||||||||||
Money transfer income | — | — | — | 73,273 | 73,273 | |||||||||||||||
Investment banking and advisory fees | — | — | 67,939 | — | 67,939 | |||||||||||||||
Asset management fees | 34,039 | — | — | — | 34,039 | |||||||||||||||
186,297 | 251,304 | 72,935 | 84,555 | 595,091 | ||||||||||||||||
Other revenues (1) | 8,927 | 111,883 | 74,930 | 72,529 | 268,269 | |||||||||||||||
Total noninterest income | $ | 195,224 | $ | 363,187 | $ | 147,865 | $ | 157,084 | $ | 863,360 | ||||||||||
Nine Months Ended September 30, 2018 | ||||||||||||||||||||
Service charges on deposit accounts | $ | 34,681 | $ | 135,277 | $ | 5,109 | $ | — | $ | 175,067 | ||||||||||
Card and merchant processing fees | 21,220 | 97,090 | — | 9,635 | 127,945 | |||||||||||||||
Investment services sales fees | 88,176 | — | — | — | 88,176 | |||||||||||||||
Money transfer income | — | — | — | 68,049 | 68,049 | |||||||||||||||
Investment banking and advisory fees | — | — | 62,398 | — | 62,398 | |||||||||||||||
Asset management fees | 32,902 | — | — | — | 32,902 | |||||||||||||||
176,979 | 232,367 | 67,507 | 77,684 | 554,537 | ||||||||||||||||
Other revenues (1) | 11,033 | 107,950 | 54,697 | 58,086 | 231,766 | |||||||||||||||
Total noninterest income | $ | 188,012 | $ | 340,317 | $ | 122,204 | $ | 135,770 | $ | 786,303 |
(1) | Other revenues primarily relate to revenues not derived from contracts with customers. |
September 30, 2019 | December 31, 2018 | ||||||
(In Thousands) | |||||||
Derivative contracts: | |||||||
Fair value hedges | $ | 17,447 | $ | (24,839 | ) | ||
Cash flow hedges | 51 | 174 | |||||
Free-standing derivatives not designated as hedging instruments | (3,968 | ) | 23,378 |
September 30, 2019 | December 31, 2018 | ||||||
(In Thousands) | |||||||
Securities purchased under agreements to resell | $ | 77,280 | $ | 109,947 | |||
Securities sold under agreements to repurchase | 83,967 | — |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
Table 1 Consolidated Average Balance and Yield/ Rate Analysis | |||||||||||||||||||||
Three Months Ended September 30, 2019 | Three Months Ended September 30, 2018 | ||||||||||||||||||||
Average Balance | Income/Expense | Yield/ Rate | Average Balance | Income/ Expense | Yield/Rate | ||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Interest earning assets: | |||||||||||||||||||||
Loans (1) (2) (3) | $ | 63,629,992 | $ | 782,948 | 4.88 | % | $ | 64,316,342 | $ | 763,165 | 4.71 | % | |||||||||
Debt securities – AFS | 7,987,642 | 36,051 | 1.79 | 11,416,609 | 53,201 | 1.85 | |||||||||||||||
Debt securities – HTM (tax exempt) (3) | 620,542 | 5,674 | 3.63 | 755,150 | 6,885 | 3.62 | |||||||||||||||
Debt securities – HTM (taxable) | 5,117,184 | 34,401 | 2.67 | 1,605,504 | 10,663 | 2.63 | |||||||||||||||
Total debt securities - HTM | 5,737,726 | 40,075 | 2.77 | 2,360,654 | 17,548 | 2.95 | |||||||||||||||
Trading account securities (3) | 125,468 | 487 | 1.54 | 122,919 | 833 | 2.69 | |||||||||||||||
Other (4) (5) | 7,057,288 | 46,528 | 2.62 | 3,175,714 | 17,449 | 2.18 | |||||||||||||||
Total earning assets | 84,538,116 | 906,089 | 4.25 | 81,392,238 | 852,196 | 4.15 | |||||||||||||||
Noninterest earning assets: | |||||||||||||||||||||
Cash and due from banks | 822,866 | 510,217 | |||||||||||||||||||
Allowance for loan losses | (971,396 | ) | (866,131 | ) | |||||||||||||||||
Net unrealized (loss) gain on investment securities available for sale | (9,389 | ) | (296,537 | ) | |||||||||||||||||
Other noninterest earning assets | 10,562,259 | 9,378,881 | |||||||||||||||||||
Total assets | $ | 94,942,456 | $ | 90,118,668 | |||||||||||||||||
Liabilities: | |||||||||||||||||||||
Interest bearing liabilities: | |||||||||||||||||||||
Interest bearing demand deposits | $ | 8,870,753 | 25,179 | 1.13 | $ | 7,703,562 | 12,644 | 0.65 | |||||||||||||
Savings and money market accounts | 28,840,389 | 96,060 | 1.32 | 26,759,661 | 63,796 | 0.95 | |||||||||||||||
Certificates and other time deposits | 14,529,036 | 82,740 | 2.26 | 14,909,612 | 63,458 | 1.69 | |||||||||||||||
Total interest bearing deposits | 52,240,178 | 203,979 | 1.55 | 49,372,835 | 139,898 | 1.12 | |||||||||||||||
FHLB and other borrowings | 3,860,727 | 32,975 | 3.39 | 4,412,717 | 37,131 | 3.34 | |||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase (5) | 1,401,320 | 15,137 | 4.29 | 172,277 | 3,169 | 7.30 | |||||||||||||||
Other short-term borrowings | 13,348 | 72 | 2.14 | 77,413 | 579 | 2.97 | |||||||||||||||
Total interest bearing liabilities | 57,515,573 | 252,163 | 1.74 | 54,035,242 | 180,777 | 1.33 | |||||||||||||||
Noninterest bearing deposits | 20,754,143 | 20,990,763 | |||||||||||||||||||
Other noninterest bearing liabilities | 2,615,801 | 1,758,494 | |||||||||||||||||||
Total liabilities | 80,885,517 | 76,784,499 | |||||||||||||||||||
Shareholder’s equity | 14,056,939 | 13,334,169 | |||||||||||||||||||
Total liabilities and shareholder’s equity | $ | 94,942,456 | $ | 90,118,668 | |||||||||||||||||
Net interest income/net interest spread | $ | 653,926 | 2.51 | % | $ | 671,419 | 2.82 | % | |||||||||||||
Net interest margin | 3.07 | % | 3.27 | % | |||||||||||||||||
Taxable equivalent adjustment | 12,885 | 13,133 | |||||||||||||||||||
Net interest income | $ | 641,041 | $ | 658,286 |
(1) | Loans include loans held for sale and nonaccrual loans. |
(2) | Interest income includes loan fees for rate calculation purposes. |
(3) | Yields are stated on a fully taxable equivalent basis assuming the tax rate in effect for each period presented. |
(4) | Includes federal funds sold, securities purchased under agreements to resell, interest bearing deposits, and other earning assets. |
(5) | Yield/rate reflects impact of balance sheet offsetting. See Note 6, Securities Financing Activities, in the notes to the financial statements. |
Table 1 Consolidated Average Balance and Yield/ Rate Analysis | |||||||||||||||||||||
Nine Months Ended September 30, 2019 | Nine Months Ended September 30, 2018 | ||||||||||||||||||||
Average Balance | Income/Expense | Yield/ Rate | Average Balance | Income/ Expense | Yield/Rate | ||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Interest earning assets: | |||||||||||||||||||||
Loans (1) (2) (3) | $ | 64,382,982 | $ | 2,395,043 | 4.97 | % | $ | 63,247,623 | $ | 2,160,341 | 4.57 | % | |||||||||
Debt securities – AFS | 8,957,354 | 134,698 | 2.01 | 11,458,832 | 163,598 | 1.91 | |||||||||||||||
Debt securities – HTM (tax exempt) (3) | 636,007 | 17,268 | 3.63 | 814,394 | 20,921 | 3.43 | |||||||||||||||
Debt securities – HTM (taxable) | 4,209,100 | 88,030 | 2.80 | 1,335,534 | 25,050 | 2.51 | |||||||||||||||
Total debt securities - HTM | 4,845,107 | 105,298 | 2.91 | 2,149,928 | 45,971 | 2.86 | |||||||||||||||
Trading account securities (3) | 96,936 | 1,627 | 2.24 | 131,618 | 2,508 | 2.55 | |||||||||||||||
Other (4) (5) | 5,219,171 | 105,319 | 2.70 | 3,042,505 | 44,240 | 1.94 | |||||||||||||||
Total earning assets | 83,501,550 | 2,741,985 | 4.39 | 80,030,506 | 2,416,658 | 4.04 | |||||||||||||||
Noninterest earning assets: | |||||||||||||||||||||
Cash and due from banks | 979,764 | 605,800 | |||||||||||||||||||
Allowance for loan losses | (952,170 | ) | (850,392 | ) | |||||||||||||||||
Net unrealized (loss) gain on investment securities available for sale | (99,388 | ) | (272,312 | ) | |||||||||||||||||
Other noninterest earning assets | 10,371,135 | 9,468,874 | |||||||||||||||||||
Total assets | $ | 93,800,891 | $ | 88,982,476 | |||||||||||||||||
Liabilities: | |||||||||||||||||||||
Interest bearing liabilities: | |||||||||||||||||||||
Interest bearing demand deposits | $ | 8,954,456 | 72,061 | 1.08 | $ | 7,946,242 | 33,250 | 0.56 | |||||||||||||
Savings and money market accounts | 27,906,692 | 261,172 | 1.25 | 26,054,348 | 151,479 | 0.78 | |||||||||||||||
Certificates and other time deposits | 15,360,243 | 255,578 | 2.22 | 14,560,787 | 168,839 | 1.55 | |||||||||||||||
Total interest bearing deposits | 52,221,391 | 588,811 | 1.51 | 48,561,377 | 353,568 | 0.97 | |||||||||||||||
FHLB and other borrowings | 4,057,769 | 104,901 | 3.46 | 3,903,295 | 93,799 | 3.21 | |||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase (5) | 763,681 | 24,886 | 4.36 | 100,045 | 5,104 | 6.82 | |||||||||||||||
Other short-term borrowings | 16,235 | 368 | 3.03 | 69,242 | 1,490 | 2.88 | |||||||||||||||
Total interest bearing liabilities | 57,059,076 | 718,966 | 1.68 | 52,633,959 | 453,961 | 1.15 | |||||||||||||||
Noninterest bearing deposits | 20,409,910 | 21,282,629 | |||||||||||||||||||
Other noninterest bearing liabilities | 2,503,845 | 1,850,856 | |||||||||||||||||||
Total liabilities | 79,972,831 | 75,767,444 | |||||||||||||||||||
Shareholder’s equity | 13,828,060 | 13,215,032 | |||||||||||||||||||
Total liabilities and shareholder’s equity | $ | 93,800,891 | $ | 88,982,476 | |||||||||||||||||
Net interest income/net interest spread | $ | 2,023,019 | 2.71 | % | $ | 1,962,697 | 2.89 | % | |||||||||||||
Net interest margin | 3.24 | % | 3.28 | % | |||||||||||||||||
Taxable equivalent adjustment | 39,140 | 38,307 | |||||||||||||||||||
Net interest income | $ | 1,983,879 | $ | 1,924,390 |
(1) | Loans include loans held for sale and nonaccrual loans. |
(2) | Interest income includes loan fees for rate calculation purposes. |
(3) | Yields are stated on a fully taxable equivalent basis assuming the tax rate in effect for each period presented. |
(4) | Includes federal funds sold, securities purchased under agreements to resell, interest bearing deposits, and other earning assets. |
(5) | Yield/rate reflects impact of balance sheet offsetting. See Note 6, Securities Financing Activities, in the notes to the financial statements. |
Table 2 Noninterest Income | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(In Thousands) | |||||||||||||||
Service charges on deposit accounts | $ | 65,143 | $ | 60,325 | $ | 185,782 | $ | 175,067 | |||||||
Card and merchant processing fees | 50,385 | 44,219 | 146,742 | 127,945 | |||||||||||
Investment services sales fees | 29,287 | 28,286 | 87,316 | 88,176 | |||||||||||
Money transfer income | 26,020 | 23,441 | 73,273 | 68,049 | |||||||||||
Investment banking and advisory fees | 28,324 | 13,956 | 67,939 | 62,398 | |||||||||||
Asset management fees | 11,405 | 11,143 | 34,039 | 32,902 | |||||||||||
Corporate and correspondent investment sales | 11,799 | 12,490 | 24,298 | 40,901 | |||||||||||
Mortgage banking | 8,204 | 6,717 | 19,011 | 23,078 | |||||||||||
Bank owned life insurance | 3,508 | 4,597 | 12,895 | 13,187 | |||||||||||
Investment securities gains, net | 21,003 | — | 29,961 | — | |||||||||||
Other | 66,241 | 53,285 | 182,104 | 154,600 | |||||||||||
Total noninterest income | $ | 321,319 | $ | 258,459 | $ | 863,360 | $ | 786,303 |
Table 3 Noninterest Expense | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(In Thousands) | |||||||||||||||
Salaries, benefits and commissions | $ | 295,092 | $ | 292,679 | $ | 884,111 | $ | 868,971 | |||||||
Professional services | 72,903 | 68,403 | 210,583 | 197,625 | |||||||||||
Equipment | 63,908 | 63,739 | 191,940 | 190,759 | |||||||||||
Net occupancy | 42,241 | 42,514 | 123,298 | 125,607 | |||||||||||
Money transfer expense | 18,005 | 16,120 | 50,273 | 46,143 | |||||||||||
Total securities impairment | — | 283 | 113 | 592 | |||||||||||
Other | 106,738 | 121,772 | 318,856 | 318,271 | |||||||||||
Total noninterest expense | $ | 598,887 | $ | 605,510 | $ | 1,779,174 | $ | 1,747,968 |
Table 4 Loan Portfolio | |||||||
September 30, 2019 | December 31, 2018 | ||||||
(In Thousands) | |||||||
Commercial loans: | |||||||
Commercial, financial and agricultural | $ | 24,683,130 | $ | 26,562,319 | |||
Real estate – construction | 2,005,347 | 1,997,537 | |||||
Commercial real estate – mortgage | 13,074,173 | 13,016,796 | |||||
Total commercial loans | $ | 39,762,650 | $ | 41,576,652 | |||
Consumer loans: | |||||||
Residential real estate – mortgage | $ | 13,503,327 | $ | 13,422,156 | |||
Equity lines of credit | 2,618,112 | 2,747,217 | |||||
Equity loans | 263,444 | 298,614 | |||||
Credit card | 936,147 | 818,308 | |||||
Consumer direct | 2,388,358 | 2,553,588 | |||||
Consumer indirect | 3,848,533 | 3,770,019 | |||||
Total consumer loans | $ | 23,557,921 | $ | 23,609,902 | |||
Total loans | $ | 63,320,571 | $ | 65,186,554 | |||
Loans held for sale | 134,314 | 68,766 | |||||
Total loans and loans held for sale | $ | 63,454,885 | $ | 65,255,320 |
Table 5 Potential Problem Loans | |||||||
September 30, 2019 | December 31, 2018 | ||||||
(In Thousands) | |||||||
Commercial, financial and agricultural | $ | 317,556 | $ | 371,627 | |||
Real estate – construction | 44,350 | 12,791 | |||||
Commercial real estate – mortgage | 106,695 | 74,737 | |||||
$ | 468,601 | $ | 459,155 |
Table 6 Asset Quality | |||||||
September 30, 2019 | December 31, 2018 | ||||||
(In Thousands) | |||||||
Nonaccrual loans: | |||||||
Commercial, financial and agricultural | $ | 301,021 | $ | 400,389 | |||
Real estate – construction | 1,616 | 2,851 | |||||
Commercial real estate – mortgage | 110,632 | 110,144 | |||||
Residential real estate – mortgage | 153,078 | 167,099 | |||||
Equity lines of credit | 36,879 | 37,702 | |||||
Equity loans | 8,728 | 10,939 | |||||
Credit card | — | — | |||||
Consumer direct | 7,348 | 4,528 | |||||
Consumer indirect | 33,940 | 17,834 | |||||
Total nonaccrual loans | 653,242 | 751,486 | |||||
Nonaccrual loans held for sale | — | — | |||||
Total nonaccrual loans and loans held for sale | $ | 653,242 | $ | 751,486 | |||
Accruing TDRs: (1) | |||||||
Commercial, financial and agricultural | $ | 1,552 | $ | 18,926 | |||
Real estate – construction | 76 | 116 | |||||
Commercial real estate – mortgage | 3,492 | 3,661 | |||||
Residential real estate – mortgage | 60,537 | 57,446 | |||||
Equity lines of credit | — | — | |||||
Equity loans | 24,789 | 26,768 | |||||
Credit card | — | — | |||||
Consumer direct | 7,360 | 2,684 | |||||
Consumer indirect | — | — | |||||
Total Accruing TDRs | 97,806 | 109,601 | |||||
Accruing TDRs classified as loans held for sale | — | — | |||||
Total Accruing TDRs (loans and loans held for sale) | $ | 97,806 | $ | 109,601 | |||
Loans 90 days past due and accruing: | |||||||
Commercial, financial and agricultural | $ | 11,179 | $ | 8,114 | |||
Real estate – construction | 532 | 544 | |||||
Commercial real estate – mortgage | 2,375 | 2,420 | |||||
Residential real estate – mortgage | 4,778 | 5,927 | |||||
Equity lines of credit | 2,072 | 2,226 | |||||
Equity loans | 524 | 180 | |||||
Credit card | 20,037 | 17,011 | |||||
Consumer direct | 17,773 | 13,336 | |||||
Consumer indirect | 8,599 | 9,791 | |||||
Total loans 90 days past due and accruing | 67,869 | 59,549 | |||||
Loans held for sale 90 days past due and accruing | — | — | |||||
Total loans and loans held for sale 90 days past due and accruing | $ | 67,869 | $ | 59,549 | |||
Foreclosed real estate | $ | 17,381 | $ | 16,869 | |||
Other repossessed assets | $ | 17,584 | $ | 12,031 |
(1) | TDR totals include accruing loans 90 days past due classified as TDR. |
Table 7 Nonperforming Assets | |||||||
September 30, 2019 | December 31, 2018 | ||||||
(In Thousands) | |||||||
Nonaccrual loans | $ | 653,242 | $ | 751,486 | |||
Loans 90 days or more past due and accruing (1) | 67,869 | 59,549 | |||||
TDRs 90 days or more past due and accruing | 588 | 411 | |||||
Nonperforming loans | 721,699 | 811,446 | |||||
Foreclosed real estate | 17,381 | 16,869 | |||||
Other repossessed assets | 17,584 | 12,031 | |||||
Total nonperforming assets | $ | 756,664 | $ | 840,346 |
(1) | Excludes loans classified as TDR. |
Table 8 Asset Quality Ratios | |||||
September 30, 2019 | December 31, 2018 | ||||
Asset Quality Ratios: | |||||
Nonperforming loans and loans held for sale as a percentage of loans and loans held for sale (1) | 1.14 | % | 1.24 | % | |
Nonperforming assets as a percentage of total loans and loans held for sale, foreclosed real estate, and other repossessed assets (2) | 1.19 | 1.29 | |||
Allowance for loan losses as a percentage of loans | 1.49 | 1.36 | |||
Allowance for loan losses as a percentage of nonperforming loans (3) | 130.55 | 109.09 |
(1) | Nonperforming loans include nonaccrual loans and loans held for sale (including nonaccrual loans classified as TDR), accruing loans 90 days past due and accruing TDRs 90 days past due. |
(2) | Nonperforming assets include nonperforming loans, foreclosed real estate and other repossessed assets. |
(3) | Nonperforming loans include nonaccrual loans (including nonaccrual loans classified as TDR), accruing loans 90 days past due and accruing TDRs 90 days past due. |
Table 9 Rollforward of Nonaccrual Loans | |||||||
Nine Months Ended September 30, | |||||||
2019 | 2018 | ||||||
(In Thousands) | |||||||
Balance at beginning of period, | $ | 751,486 | $ | 658,865 | |||
Additions | 584,569 | 534,328 | |||||
Returns to accrual | (102,455 | ) | (148,261 | ) | |||
Loan sales | — | (40,095 | ) | ||||
Payments and paydowns | (120,898 | ) | (124,435 | ) | |||
Transfers to foreclosed real estate | (21,171 | ) | (15,677 | ) | |||
Charge-offs | (438,289 | ) | (236,566 | ) | |||
Balance at end of period | $ | 653,242 | $ | 628,159 |
Table 10 Rollforward of TDR Activity | |||||||
Nine Months Ended September 30, | |||||||
2019 | 2018 | ||||||
(In Thousands) | |||||||
Balance at beginning period | $ | 311,442 | $ | 285,606 | |||
New TDRs | 75,069 | 138,281 | |||||
Payments/Payoffs | (129,332 | ) | (58,600 | ) | |||
Charge-offs | (41,749 | ) | (5,821 | ) | |||
Transfers to foreclosed real estate | (2,153 | ) | — | ||||
Balance at end of period | $ | 213,277 | $ | 359,466 |
Table 11 Summary of Loan Loss Experience | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(Dollars in Thousands) | |||||||||||||||
Average loans outstanding during the period | $ | 63,525,661 | $ | 64,249,540 | $ | 64,157,886 | $ | 63,189,287 | |||||||
Allowance for loan losses, beginning of period | $ | 977,660 | $ | 860,000 | $ | 885,242 | $ | 842,760 | |||||||
Charge-offs: | |||||||||||||||
Commercial, financial and agricultural | 73,178 | 20,142 | 132,006 | 42,968 | |||||||||||
Real estate – construction | — | — | 19 | 436 | |||||||||||
Commercial real estate – mortgage | 2,270 | 2,328 | 2,388 | 2,781 | |||||||||||
Residential real estate – mortgage | 2,692 | 3,192 | 6,337 | 7,798 | |||||||||||
Equity lines of credit | 1,687 | 1,324 | 6,506 | 4,909 | |||||||||||
Equity loans | 456 | 1,054 | 1,683 | 2,416 | |||||||||||
Credit card | 18,317 | 11,721 | 53,425 | 34,937 | |||||||||||
Consumer direct | 71,213 | 32,245 | 193,060 | 90,908 | |||||||||||
Consumer indirect | 31,870 | 29,633 | 98,543 | 84,350 | |||||||||||
Total charge-offs | 201,683 | 101,639 | 493,967 | 271,503 | |||||||||||
Recoveries: | |||||||||||||||
Commercial, financial and agricultural | 3,236 | 6,167 | 11,405 | 10,031 | |||||||||||
Real estate – construction | 59 | 23 | 1,965 | 261 | |||||||||||
Commercial real estate – mortgage | 20 | 293 | 104 | 6,137 | |||||||||||
Residential real estate – mortgage | 1,412 | 1,102 | 2,605 | 2,770 | |||||||||||
Equity lines of credit | 1,256 | 1,343 | 5,129 | 4,315 | |||||||||||
Equity loans | 515 | 1,009 | 1,629 | 2,883 | |||||||||||
Credit card | 1,919 | 2,035 | 5,348 | 4,078 | |||||||||||
Consumer direct | 7,221 | 3,480 | 18,052 | 6,855 | |||||||||||
Consumer indirect | 9,947 | 6,616 | 26,740 | 23,533 | |||||||||||
Total recoveries | 25,585 | 22,068 | 72,977 | 60,863 | |||||||||||
Net charge-offs | 176,098 | 79,571 | 420,990 | 210,640 | |||||||||||
Total provision for loan losses | 140,629 | 94,964 | 477,939 | 243,273 | |||||||||||
Allowance for loan losses, end of period | $ | 942,191 | $ | 875,393 | $ | 942,191 | $ | 875,393 | |||||||
Net charge-offs to average loans | 1.10 | % | 0.49 | % | 0.88 | % | 0.45 | % |
Table 12 Commercial, Financial and Agricultural | ||||||||||||||||||||||||||||||||
September 30, 2019 | December 31, 2018 (1) | |||||||||||||||||||||||||||||||
Industry | Recorded Investment | Nonaccrual | Accruing TDRs | Accruing Greater Than 90 Days Past Due | Recorded Investment | Nonaccrual | Accruing TDRs | Accruing Greater Than 90 Days Past Due | ||||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||||||
Autos, Components and Durable Goods | $ | 2,136,336 | $ | 25,496 | $ | — | $ | — | $ | 2,403,917 | $ | 68,891 | $ | — | $ | 3,922 | ||||||||||||||||
Basic Materials | 501,199 | 1,582 | — | 165 | 567,966 | 2,426 | — | — | ||||||||||||||||||||||||
Capital Goods & Industrial Services | 2,007,005 | 30,769 | 103 | — | 2,523,857 | 74,769 | 124 | 39 | ||||||||||||||||||||||||
Construction & Construction Materials | 742,692 | 49,537 | — | — | 732,838 | 19,971 | — | — | ||||||||||||||||||||||||
Consumer | 705,009 | 1,853 | — | — | 592,607 | 600 | — | — | ||||||||||||||||||||||||
Healthcare | 2,796,881 | 18,024 | 317 | 37 | 2,914,464 | 18,682 | 333 | 83 | ||||||||||||||||||||||||
Energy | 3,062,547 | 138,743 | — | — | 2,863,529 | 119,069 | — | — | ||||||||||||||||||||||||
Financial Services | 927,225 | 914 | — | 1,520 | 1,061,922 | 94 | — | — | ||||||||||||||||||||||||
General Corporates | 1,717,090 | 17,137 | 499 | 8,503 | 1,757,121 | 4,645 | 3 | 3,993 | ||||||||||||||||||||||||
Institutions | 3,188,413 | 425 | — | — | 3,349,248 | 474 | — | — | ||||||||||||||||||||||||
Leisure and Consumer Services | 2,706,091 | 8,036 | 344 | — | 2,597,598 | 22,544 | — | 10 | ||||||||||||||||||||||||
Real Estate | 1,450,000 | 230 | — | — | 1,533,206 | 248 | — | — | ||||||||||||||||||||||||
Retail | 500,874 | 1,513 | 245 | 954 | 573,658 | 29,751 | — | 67 | ||||||||||||||||||||||||
Telecoms, Technology & Media | 956,084 | 2,775 | 44 | — | 1,525,730 | 3,680 | 46 | — | ||||||||||||||||||||||||
Transportation | 944,594 | 3,987 | — | — | 1,000,564 | 34,545 | — | — | ||||||||||||||||||||||||
Utilities | 341,090 | — | — | — | 564,094 | — | 18,420 | — | ||||||||||||||||||||||||
Total Commercial, Financial and Agricultural | $ | 24,683,130 | $ | 301,021 | $ | 1,552 | $ | 11,179 | $ | 26,562,319 | $ | 400,389 | $ | 18,926 | $ | 8,114 |
(1) | December 31, 2018 data has been revised to conform to current period industry classifications, as the Company redefined industry classifications during the first quarter of 2019. |
Table 13 Commercial Real Estate | ||||||||||||||||||||||||||||||||
September 30, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||||
State | Recorded Investment | Nonaccrual | Accruing TDRs | Accruing Greater Than 90 Days Past Due | Recorded Investment | Nonaccrual | Accruing TDRs | Accruing Greater Than 90 Days Past Due | ||||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||||||
Alabama | $ | 378,421 | $ | 5,459 | $ | 2,093 | $ | — | $ | 375,442 | $ | 5,507 | $ | 2,221 | $ | 237 | ||||||||||||||||
Arizona | 890,045 | 8,656 | — | — | 855,007 | 8,342 | — | — | ||||||||||||||||||||||||
California | 1,940,729 | — | — | 28 | 2,196,360 | — | — | 1,722 | ||||||||||||||||||||||||
Colorado | 590,703 | 5,970 | — | — | 533,481 | 6,036 | — | — | ||||||||||||||||||||||||
Florida | 1,238,530 | 11,207 | 37 | — | 1,086,443 | 18,030 | 66 | — | ||||||||||||||||||||||||
New Mexico | 111,959 | 4,084 | — | — | 157,473 | 3,769 | 121 | 14 | ||||||||||||||||||||||||
Texas | 3,662,882 | 59,774 | 511 | 2,347 | 3,911,128 | 41,707 | 382 | 447 | ||||||||||||||||||||||||
Other | 4,260,904 | 15,482 | 851 | — | 3,901,462 | 26,753 | 871 | — | ||||||||||||||||||||||||
$ | 13,074,173 | $ | 110,632 | $ | 3,492 | $ | 2,375 | $ | 13,016,796 | $ | 110,144 | $ | 3,661 | $ | 2,420 |
Table 14 Real Estate – Construction | ||||||||||||||||||||||||||||||||
September 30, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||||
State | Recorded Investment | Nonaccrual | Accruing TDRs | Accruing Greater Than 90 Days Past Due | Recorded Investment | Nonaccrual | Accruing TDRs | Accruing Greater Than 90 Days Past Due | ||||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||||||
Alabama | $ | 67,027 | $ | 92 | $ | — | $ | 115 | $ | 64,758 | $ | 96 | $ | — | $ | 69 | ||||||||||||||||
Arizona | 198,756 | — | — | — | 181,143 | — | — | — | ||||||||||||||||||||||||
California | 245,712 | — | — | — | 253,416 | — | — | — | ||||||||||||||||||||||||
Colorado | 92,916 | — | — | — | 111,375 | — | — | — | ||||||||||||||||||||||||
Florida | 168,666 | 906 | — | — | 213,502 | — | — | — | ||||||||||||||||||||||||
New Mexico | 14,012 | 26 | 16 | — | 6,868 | — | 46 | — | ||||||||||||||||||||||||
Texas | 780,055 | 186 | 60 | 417 | 754,994 | 2,331 | 70 | 475 | ||||||||||||||||||||||||
Other | 438,203 | 406 | — | — | 411,481 | 424 | — | — | ||||||||||||||||||||||||
$ | 2,005,347 | $ | 1,616 | $ | 76 | $ | 532 | $ | 1,997,537 | $ | 2,851 | $ | 116 | $ | 544 |
Table 15 Residential Real Estate — Mortgage | ||||||||||||||||||||||||||||||||
September 30, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||||
State | Recorded Investment | Nonaccrual | Accruing TDRs | Accruing Greater Than 90 Days Past Due | Recorded Investment | Nonaccrual | Accruing TDRs | Accruing Greater Than 90 Days Past Due | ||||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||||||
Alabama | $ | 925,575 | $ | 24,726 | $ | 11,303 | $ | 998 | $ | 944,556 | $ | 23,285 | $ | 11,677 | $ | 1,002 | ||||||||||||||||
Arizona | 1,369,479 | 12,217 | 10,898 | 530 | 1,334,736 | 12,572 | 8,415 | 217 | ||||||||||||||||||||||||
California | 3,375,734 | 19,088 | 3,718 | — | 3,252,592 | 15,898 | 3,910 | — | ||||||||||||||||||||||||
Colorado | 1,146,398 | 4,645 | 2,100 | — | 1,132,517 | 5,255 | 784 | — | ||||||||||||||||||||||||
Florida | 1,535,070 | 31,892 | 10,256 | 370 | 1,590,912 | 39,699 | 9,908 | 1,433 | ||||||||||||||||||||||||
New Mexico | 213,805 | 4,003 | 1,258 | 635 | 219,434 | 3,683 | 1,287 | — | ||||||||||||||||||||||||
Texas | 4,529,746 | 43,350 | 19,074 | 1,527 | 4,536,383 | 50,069 | 19,293 | 3,275 | ||||||||||||||||||||||||
Other | 407,520 | 13,157 | 1,930 | 718 | 411,026 | 16,638 | 2,172 | — | ||||||||||||||||||||||||
$ | 13,503,327 | $ | 153,078 | $ | 60,537 | $ | 4,778 | $ | 13,422,156 | $ | 167,099 | $ | 57,446 | $ | 5,927 |
Table 16 Residential Real Estate - Mortgage | ||||||||||||||||||||||||||||||||
September 30, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||||
FICO Score | Recorded Investment | Nonaccrual | Accruing TDRs | Accruing Greater Than 90 Days Past Due | Recorded Investment | Nonaccrual | Accruing TDRs | Accruing Greater Than 90 Days Past Due | ||||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||||||
Below 621 | $ | 709,444 | $ | 101,475 | $ | 20,717 | $ | 3,135 | $ | 730,294 | $ | 113,560 | $ | 19,131 | $ | 4,803 | ||||||||||||||||
621 – 680 | 1,098,070 | 22,450 | 11,432 | 106 | 1,146,999 | 20,877 | 14,168 | 301 | ||||||||||||||||||||||||
681 – 720 | 1,753,448 | 11,175 | 10,263 | — | 1,725,819 | 11,471 | 9,031 | 451 | ||||||||||||||||||||||||
Above 720 | 9,355,593 | 10,834 | 17,559 | 346 | 9,208,678 | 11,156 | 14,847 | 107 | ||||||||||||||||||||||||
Unknown | 586,772 | 7,144 | 566 | 1,191 | 610,366 | 10,035 | 269 | 265 | ||||||||||||||||||||||||
$ | 13,503,327 | $ | 153,078 | $ | 60,537 | $ | 4,778 | $ | 13,422,156 | $ | 167,099 | $ | 57,446 | $ | 5,927 |
Table 17 Equity Loans and Lines | ||||||||||||||||||||||||||||||||
September 30, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||||
State | Recorded Investment | Nonaccrual | Accruing TDRs | Accruing Greater Than 90 Days Past Due | Recorded Investment | Nonaccrual | Accruing TDRs | Accruing Greater Than 90 Days Past Due | ||||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||||||
Alabama | $ | 460,925 | $ | 9,197 | $ | 7,640 | $ | 205 | $ | 498,839 | $ | 11,536 | $ | 8,062 | $ | 477 | ||||||||||||||||
Arizona | 324,590 | 6,368 | 3,595 | 29 | 348,763 | 6,409 | 4,005 | 221 | ||||||||||||||||||||||||
California | 411,798 | 2,148 | 190 | 49 | 426,179 | 3,358 | 267 | 402 | ||||||||||||||||||||||||
Colorado | 173,564 | 2,829 | 747 | 87 | 193,122 | 2,822 | 841 | 128 | ||||||||||||||||||||||||
Florida | 299,109 | 8,258 | 5,295 | 43 | 332,367 | 8,646 | 5,704 | 398 | ||||||||||||||||||||||||
New Mexico | 46,824 | 1,555 | 577 | 491 | 50,873 | 1,515 | 593 | 286 | ||||||||||||||||||||||||
Texas | 1,136,239 | 14,046 | 6,389 | 1,545 | 1,166,304 | 13,097 | 6,901 | 446 | ||||||||||||||||||||||||
Other | 28,507 | 1,206 | 356 | 147 | 29,384 | 1,258 | 395 | 48 | ||||||||||||||||||||||||
$ | 2,881,556 | $ | 45,607 | $ | 24,789 | $ | 2,596 | $ | 3,045,831 | $ | 48,641 | $ | 26,768 | $ | 2,406 |
Table 18 Equity Loans and Lines | ||||||||||||||||||||||||||||||||
September 30, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||||
FICO Score | Recorded Investment | Nonaccrual | Accruing TDRs | Accruing Greater Than 90 Days Past Due | Recorded Investment | Nonaccrual | Accruing TDRs | Accruing Greater Than 90 Days Past Due | ||||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||||||
Below 621 | $ | 199,277 | $ | 24,867 | $ | 6,669 | $ | 2,228 | $ | 204,527 | $ | 26,747 | $ | 5,905 | $ | 1,923 | ||||||||||||||||
621 – 680 | 344,851 | 10,498 | 7,306 | 173 | 376,248 | 9,548 | 9,126 | 254 | ||||||||||||||||||||||||
681 – 720 | 493,624 | 6,448 | 4,345 | 195 | 537,568 | 8,014 | 3,908 | 106 | ||||||||||||||||||||||||
Above 720 | 1,837,132 | 3,657 | 6,370 | — | 1,919,796 | 3,950 | 7,829 | 106 | ||||||||||||||||||||||||
Unknown | 6,672 | 137 | 99 | — | 7,692 | 382 | — | 17 | ||||||||||||||||||||||||
$ | 2,881,556 | $ | 45,607 | $ | 24,789 | $ | 2,596 | $ | 3,045,831 | $ | 48,641 | $ | 26,768 | $ | 2,406 |
Table 19 Consumer Direct | ||||||||||||||||||||||||||||||||
September 30, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||||
FICO Score | Recorded Investment | Nonaccrual | Accruing TDRs | Accruing Greater Than 90 Days Past Due | Recorded Investment | Nonaccrual | Accruing TDRs | Accruing Greater Than 90 Days Past Due | ||||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||||||
Below 621 | $ | 170,810 | $ | 3,524 | $ | 1,048 | $ | 7,073 | $ | 217,273 | $ | 3,870 | $ | 1,002 | $ | 12,197 | ||||||||||||||||
621 – 680 | 467,052 | 1,966 | 981 | 6,371 | 531,466 | 257 | 387 | 178 | ||||||||||||||||||||||||
681 – 720 | 557,928 | 1,246 | 3,626 | 2,632 | 596,889 | 147 | 1,295 | 311 | ||||||||||||||||||||||||
Above 720 | 1,118,644 | 612 | 1,705 | 1,121 | 1,149,606 | 254 | — | 11 | ||||||||||||||||||||||||
Unknown | 73,924 | — | — | 576 | 58,354 | — | — | 639 | ||||||||||||||||||||||||
$ | 2,388,358 | $ | 7,348 | $ | 7,360 | $ | 17,773 | $ | 2,553,588 | $ | 4,528 | $ | 2,684 | $ | 13,336 |
Table 20 Consumer Indirect | ||||||||||||||||||||||||||||||||
September 30, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||||
FICO Score | Recorded Investment | Nonaccrual | Accruing TDRs | Accruing Greater Than 90 Days Past Due | Recorded Investment | Nonaccrual | Accruing TDRs | Accruing Greater Than 90 Days Past Due | ||||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||||||
Below 621 | $ | 758,852 | $ | 27,233 | $ | — | $ | 7,192 | $ | 865,702 | $ | 14,700 | $ | — | $ | 9,128 | ||||||||||||||||
621 – 680 | 1,054,395 | 4,390 | — | 1,012 | 1,083,116 | 2,084 | — | 381 | ||||||||||||||||||||||||
681 – 720 | 738,007 | 1,359 | — | 298 | 719,093 | 648 | — | 69 | ||||||||||||||||||||||||
Above 720 | 1,295,021 | 958 | — | 97 | 1,099,289 | 402 | — | 213 | ||||||||||||||||||||||||
Unknown | 2,258 | — | — | — | 2,819 | — | — | — | ||||||||||||||||||||||||
$ | 3,848,533 | $ | 33,940 | $ | — | $ | 8,599 | $ | 3,770,019 | $ | 17,834 | $ | — | $ | 9,791 |
Table 21 Credit Ratings | |||||
As of September 30, 2019 | |||||
Standard & Poor’s | Moody’s | Fitch | |||
BBVA USA Bancshares, Inc. | |||||
Long-term debt rating | BBB+ | Baa2 | BBB+ | ||
Short-term debt rating | A-2 | — | F2 | ||
BBVA USA | |||||
Long-term debt rating | BBB+ | Baa2 | BBB+ | ||
Long-term bank deposits (1) | N/A | A2 | A- | ||
Subordinated debt | BBB | Baa2 | BBB | ||
Short-term debt rating | A-2 | P-2 | F2 | ||
Short-term deposit rating (1) | N/A | P-1 | F2 | ||
Outlook | Stable | Stable | Negative |
Table 22 Composition of Deposits | |||||||||||||
September 30, 2019 | December 31, 2018 | ||||||||||||
Balance | % of Total | Balance | % of Total | ||||||||||
(Dollars in Thousands) | |||||||||||||
Noninterest-bearing demand deposits | $ | 21,019,303 | 28.6 | % | $ | 20,183,876 | 28.0 | % | |||||
Interest-bearing demand deposits | 8,740,086 | 11.9 | 8,400,192 | 11.6 | |||||||||
Savings and money market | 29,873,962 | 40.6 | 27,877,124 | 38.6 | |||||||||
Time deposits | 13,936,091 | 18.9 | 15,706,795 | 21.8 | |||||||||
Total deposits | $ | 73,569,442 | 100.0 | % | $ | 72,167,987 | 100.0 | % |
Table 23 Short-Term Borrowings | |||||||||||||||||
Maximum Outstanding at Any Month End | Average Balance | Average Interest Rate | Ending Balance | Average Interest Rate at Period End | |||||||||||||
(Dollars in Thousands) | |||||||||||||||||
Balance at September 30, 2019 | |||||||||||||||||
Federal funds purchased | $ | 5,060 | $ | 998 | 1.75 | % | $ | — | — | % | |||||||
Securities sold under agreements to repurchase (1) | 1,052,762 | 762,683 | 0.30 | 117,421 | 2.22 | ||||||||||||
Other short-term borrowings | 69,446 | 16,235 | 3.03 | 45 | 3.03 | ||||||||||||
$ | 1,127,268 | $ | 779,916 | $ | 117,466 | ||||||||||||
Balance at December 31, 2018 | |||||||||||||||||
Federal funds purchased | $ | 2,000 | $ | 82 | 2.50 | % | $ | — | — | % | |||||||
Securities sold under agreements to repurchase (1) | 183,511 | 109,770 | 1.78 | 102,275 | 3.73 | ||||||||||||
Other short-term borrowings | 159,004 | 68,423 | 3.04 | — | — | ||||||||||||
$ | 344,515 | $ | 178,275 | $ | 102,275 |
(1) | Average interest rate does not reflect impact of balance sheet offsetting. See Note 6, Securities Financing Activities, in the Notes to the Unaudited Condensed Consolidated Financial Statements. |
Table 24 Net Interest Income Sensitivity | ||
Estimated % Change in Net Interest Income | ||
September 30, 2019 | ||
Rate Change | ||
+ 200 basis points | 5.03 | % |
+ 100 basis points | 2.78 | |
- 100 basis points | (4.45 | ) |
Table 25 Economic Value of Equity | ||
Estimated % Change in Economic Value of Equity | ||
September 30, 2019 | ||
Rate Change | ||
+ 300 basis points | (11.76) | % |
+ 200 basis points | (7.16 | ) |
+ 100 basis points | (2.77 | ) |
- 100 basis points | (0.07 | ) |
Table 26 Capital Ratios | |||||||
September 30, 2019 | December 31, 2018 | ||||||
(Dollars in Thousands) | |||||||
Capital: | |||||||
CET1 Capital | $ | 8,792,958 | $ | 8,457,585 | |||
Tier 1 Capital | 9,027,158 | 8,691,785 | |||||
Total Capital | 10,495,530 | 10,216,625 | |||||
Ratios: | |||||||
CET1 Risk-based Capital Ratio | 12.89 | % | 12.00 | % | |||
Tier 1 Risk-based Capital Ratio | 13.24 | 12.33 | |||||
Total Risk-based Capital Ratio | 15.39 | 14.49 | |||||
Leverage Ratio | 10.03 | 10.03 |
Item 3. | Quantitative and Qualitative Disclosures about Market Risk |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Item 3. | Defaults Upon Senior Securities |
Item 4. | Mine Safety Disclosures |
Item 5. | Other Information |
Item 6. | Exhibits |
Exhibit Number | Description of Documents |
Second Amended and Restated Certificate of Formation of the Company, reflecting name change to BBVA USA Bancshares, Inc., (incorporated herein by reference to Exhibit 3.1 of the Company's Current Report on Form 8-K (file no. 000-55106), filed on June 10, 2019). | |
Bylaws of BBVA USA Bancshares, Inc. (incorporated herein by reference to Exhibit 3.2 of the Company’s Registration Statement on Form 10 filed with the Commission on November 22, 2013, File No. 0-55106). | |
Certification by the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
Certification by the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
Certification by the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
Certification by the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
101.1 | Interactive Data File. |
Date: November 5, 2019 | BBVA USA Bancshares, Inc. | ||
By: | /s/ Kirk P. Pressley | ||
Name: | Kirk P. Pressley | ||
Title: | Senior Executive Vice President, Chief Financial Officer and Duly Authorized Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of BBVA USA 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: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer 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. |
Date: November 5, 2019 | /s/ Javier Rodriguez Soler | ||
Javier Rodriguez Soler | |||
Chief Executive Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of BBVA USA 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: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer 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. |
Date: November 5, 2019 | /s/ Kirk P. Pressley | ||
Kirk P. Pressley | |||
Chief Financial Officer |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: November 5, 2019 | /s/ Javier Rodriguez Soler | ||
Javier Rodriguez Soler | |||
Chief Executive Officer |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: November 5, 2019 | /s/ Kirk P. Pressley | ||
Kirk P. Pressley | |||
Chief Financial Officer |
Leases - Maturities of Lease Liabilities (Details) $ in Thousands |
Sep. 30, 2019
USD ($)
|
---|---|
Finance | |
Remainder of 2019 | $ 553 |
2020 | 2,233 |
2021 | 2,143 |
2022 | 1,923 |
2023 | 1,501 |
2024 | 1,410 |
Thereafter | 5,696 |
Total finance undiscounted lease liability | 15,459 |
Operating | |
Remainder of 2019 | 13,857 |
2020 | 54,540 |
2021 | 50,448 |
2022 | 45,444 |
2023 | 39,568 |
2024 | 30,732 |
Thereafter | 137,660 |
Total operating undiscounted lease liability | 372,249 |
Total | |
Remainder of 2019 | 14,410 |
2020 | 56,773 |
2021 | 52,591 |
2022 | 47,367 |
2023 | 41,069 |
2024 | 32,142 |
Thereafter | 143,356 |
Total undiscounted lease liability | 387,708 |
Total finance undiscounted lease liability | 15,459 |
Finance lease, less: imputed interest | 2,712 |
Finance lease, discounted lease liability | 12,747 |
Total operating undiscounted lease liability | 372,249 |
Operating lease, less: imputed interest | 54,320 |
Operating lease, discounted lease liability | 317,929 |
Total undiscounted lease liability | 387,708 |
Lease, less: imputed interest | 57,032 |
Lease, discounted lease liability | $ 330,676 |
Derivatives and Hedging - Credit and Market Risks (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
Dec. 31, 2018 |
||||||
Derivatives [Line Items] | ||||||||||
Derivative assets | $ 75,652,000 | $ 75,652,000 | $ 82,168,000 | |||||||
Derivative, collateral, right to reclaim cash | [1] | 109,616,000 | 109,616,000 | 96,917,000 | ||||||
Derivative, collateral, obligation to return | [1] | 32,770,000 | 32,770,000 | 18,932,000 | ||||||
Other assets | ||||||||||
Derivatives [Line Items] | ||||||||||
Derivative, collateral, right to reclaim cash | 110,000,000 | 110,000,000 | 97,000,000 | |||||||
Deposits | ||||||||||
Derivatives [Line Items] | ||||||||||
Derivative, collateral, obligation to return | 40,000,000 | 40,000,000 | 22,000,000 | |||||||
Free-standing derivatives not designated as hedging instrument | ||||||||||
Derivatives [Line Items] | ||||||||||
Derivative assets | [2] | 459,881,000 | 459,881,000 | 186,707,000 | ||||||
Free-standing derivatives not designated as hedging instrument | Interest rate swap | ||||||||||
Derivatives [Line Items] | ||||||||||
Derivative assets | 445,000,000 | 445,000,000 | ||||||||
Gain (loss) on derivative instruments held for trading purposes, net | 0 | $ 0 | 0 | $ 0 | ||||||
Gain (loss) on derivative instruments held for non-trading purposes, net | 0 | $ 0 | 0 | $ 0 | ||||||
Derivatives designated as hedging instrument | ||||||||||
Derivatives [Line Items] | ||||||||||
Derivative assets | [2] | 30,291,000 | 30,291,000 | $ 16,020,000 | ||||||
Derivatives designated as hedging instrument | Interest rate swap | Over the counter | ||||||||||
Derivatives [Line Items] | ||||||||||
Credit risk derivatives, at fair value, net | $ 30,000,000 | $ 30,000,000 | ||||||||
|
Debt Securities Available for Sale and Debt Securities Held to Maturity - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
|
Investments, Debt and Equity Securities [Abstract] | ||||
Securities impairment | $ 0 | $ 283 | $ 113 | $ 592 |
Securities Financing Activities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Transfers and Servicing [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of assets and liabilities subject to enforceable master netting arrangements |
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Schedule of securities sold under agreements to repurchase | The following table presents the Company's related activity, by collateral type and remaining contractual maturity.
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Debt Securities Available for Sale and Debt Securities Held to Maturity (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of adjusted cost and approximate fair value of investment securities available for sale and investments held to maturity | The following tables present the adjusted cost and approximate fair value of debt securities available for sale and debt securities held to maturity.
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Schedule of fair value and gross unrealized losses of available for sale and held to maturity securities that were in a loss position | The following tables disclose the fair value and the gross unrealized losses of the Company’s available for sale debt securities and held to maturity debt securities that were in a loss position at September 30, 2019 and December 31, 2018. This information is aggregated by investment category and the length of time the individual securities have been in an unrealized loss position.
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Schedule of activity related to credit losses for debt securities where other than temporary impairments was recognized in other comprehensive income | The following table discloses activity related to credit losses for debt securities where a portion of the OTTI was recognized in other comprehensive income.
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Schedule of investments classified by contractual maturity date | The contractual maturities of the securities portfolios are presented in the following table.
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Schedule of gross realized gains and losses | The gross realized gains and losses recognized on sales of debt securities available for sale are shown in the table below.
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Supplemental Disclosure for Statement of Cash Flows (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of supplemental cash flow disclosures | The following table presents the Company’s supplemental disclosures for statement of cash flows.
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Schedule of cash and cash equivalents | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Company’s Unaudited Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Company's Unaudited Condensed Consolidated Statements of Cash Flows.
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Schedule of restricted cash equivalents | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Company’s Unaudited Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Company's Unaudited Condensed Consolidated Statements of Cash Flows.
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Basis of Presentation (Details) $ in Millions |
Jan. 01, 2019
USD ($)
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ASU 2016-02 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Leases, right-of-use assets | $ 290.0 |
Lease liabilities | 332.0 |
Cumulative effect adjustment related to ASU adoption | 3.5 |
ASU 2018-02 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Tax Cuts and Jobs Act of 2017, reclassification from AOCI to retained earnings of stranded tax effects, increase (decrease) in AOCI | $ (35.4) |
Segment Information |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information The Company’s operating segments are based on the Company’s organizational structure. Each segment reflects the manner in which financial information is evaluated by management. The operating segment results include certain overhead allocations and intercompany transactions. All intercompany transactions have been eliminated to determine the consolidated balances. The Company operates primarily in the United States, and, accordingly, revenue and assets outside the United States are not material. There are no individual customers whose attributable revenues exceed 10% of consolidated revenue. The following tables present the segment information for the Company’s existing segments.
The financial information presented was derived from the internal profitability reporting system used by management to monitor and manage the financial performance of the Company. This information is based on internal management accounting policies that have been developed to reflect the underlying economics of the businesses. These policies address the methodologies applied and include policies related to funds transfer pricing, cost allocations and capital allocations. Funds transfer pricing was used in the determination of net interest income earned primarily on loans and deposits. The method employed for funds transfer pricing is a matched funding concept whereby lines of business which are fund providers are credited and those that are fund users are charged based on maturity, prepayment and/or repricing characteristics applied on an instrument level. Provision for loan losses is allocated to each segment based on internal management accounting policies for the allowance for loan losses and the related provision which differs from the policies for consolidated purposes. The difference between the consolidated provision for loan losses and the segments' provision for loan losses is reflected in Corporate Support and Other and reflects a current year revision in policy. Costs for centrally managed operations are generally allocated to the lines of business based on the utilization of services provided or other appropriate indicators. Revenue is recorded in the business segment responsible for the related product or service. Fee sharing is recorded to allocate portions of such revenue to other business segments involved in selling to, or providing services to, customers. Results of operations for the business segments reflect these fee sharing allocations. Capital is allocated to the lines of business based upon the underlying risks in each business considering economic and regulatory capital standards. The development and application of these methodologies is a dynamic process. Accordingly, prior period financial results have been revised to reflect management accounting enhancements and changes in the Company's organizational structure. The 2018 segment information has been revised to conform to the 2019 presentation. In addition, unlike financial accounting, there is no authoritative literature for management accounting similar to U.S. GAAP. Consequently, reported results are not necessarily comparable with those presented by other financial institutions. |
Document and Entity Information - shares |
9 Months Ended | |
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Sep. 30, 2019 |
Oct. 25, 2019 |
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Entity [Abstract] | ||
Entity Registrant Name | BBVA USA BANCSHARES, INC. | |
Entity Central Index Key | 0001409775 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 222,963,891 |
Commitments, Contingencies and Guarantees |
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Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Commitments, Contingencies and Guarantees | Commitments, Contingencies and Guarantees Commitments to Extend Credit & Standby and Commercial Letters of Credit The following represents the Company’s commitments to extend credit, standby letters of credit and commercial letters of credit:
Commitments to extend credit are agreements to lend to customers as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Standby and commercial letters of credit are commitments issued by the Company to guarantee the performance of a customer to a third party. These guarantees are primarily issued to support public and private borrowing arrangements, including commercial paper, bond financing and similar transactions, and expire in decreasing amounts with terms ranging from one to four years. The credit risk involved in issuing letters of credit and commitments is essentially the same as that involved in extending loan facilities to customers. The fair value of the letters of credit and commitments typically approximates the fee received from the customer for issuing such commitments. These fees are deferred and are recognized over the commitment period. At September 30, 2019 and December 31, 2018, the recorded amount of these deferred fees was $7 million and $8 million, respectively. The Company holds various assets as collateral supporting those commitments for which collateral is deemed necessary. At September 30, 2019, the maximum potential amount of future undiscounted payments the Company could be required to make under outstanding standby letters of credit was $988 million. At September 30, 2019 and December 31, 2018, the Company had reserves related to letters of credit and unfunded commitments recorded in accrued expenses and other liabilities on the Company’s Unaudited Condensed Consolidated Balance Sheet of $64 million and $66 million, respectively. Loan Sale Recourse The Company has potential recourse related to specific FNMA securitizations. At both September 30, 2019 and December 31, 2018, the amount of potential recourse was $19 million of which the Company had reserved $793 thousand which is recorded in accrued expenses and other liabilities on the Company's Unaudited Condensed Consolidated Balance Sheets for the respective periods. The Company also issues standard representations and warranties related to mortgage loan sales to government-sponsored agencies. Although these agreements often do not specify limitations, the Company does not believe that any payments related to these representations and warranties would materially change the financial condition or results of operations of the Company. At September 30, 2019 and December 31, 2018, the Company had $1.3 million and $1.2 million, respectively, of reserves in accrued expenses and other liabilities on the Company’s Unaudited Condensed Consolidated Balance Sheets related to potential losses from loans sold. Legal and Regulatory Proceedings In the ordinary course of business, the Company is subject to legal proceedings, including claims, litigation, investigations and administrative proceedings, all of which are considered incidental to the normal conduct of business. The Company believes it has substantial defenses to the claims asserted against it in its currently outstanding legal proceedings and, with respect to such legal proceedings, intends to defend itself vigorously. Set forth below are descriptions of certain of the Company’s significant legal proceedings. In January 2014, the Bank was named as a defendant in a lawsuit filed in the District Court of Dallas County, Texas, David Bagwell, individually and as Trustee of the David S. Bagwell Trust, et al. v. BBVA USA, et al., wherein the plaintiffs (who are the borrowers and guarantors of the underlying loans) allege that BBVA USA wrongfully sold their loans to a third party after representing that it would not do so. The plaintiffs seek unspecified monetary relief. Following trial in December 2017, the jury rendered a verdict in favor of the plaintiffs totaling $98 million. On June 27, 2018, the court entered a judgment in favor of the plaintiffs in the amount of $96 million, which includes prejudgment interest. The Bank has appealed and will vigorously contest the judgment on appeal. The Company believes there are substantial defenses to these claims and intends to defend them vigorously. In March 2015, the Bank was named as a defendant in a lawsuit filed in the United States District Court for the Southern District of Texas, Lomix Limited Partnership, et al. v. BBVA USA, wherein the plaintiffs (who are the borrower and guarantors of the underlying loan) allege that the Bank wrongfully sold their loan to a third party, and wrongfully disclosed the guarantors’ personal financial information in connection with the sale of the loan. The plaintiffs seek unspecified monetary relief. On February 28, 2019, the Court granted partial summary judgment in favor of BBVA USA, leaving only a nominal claim for damages. The plaintiffs disclaimed nominal damages and the Court entered a final judgment in favor of BBVA USA. Plaintiffs filed a notice of appeal with the Fifth Circuit Court of Appeals on April 5, 2019, but later withdrew the appeal on or about August 26, 2019, prompting the appellate court to dismiss the matter on that same date. In January 2016, BSI was named as a defendant in a putative class action lawsuit filed in the United States District Court for the Southern District of Texas, In re Plains All American Pipeline, L.P. Securities Litigation, wherein the plaintiffs challenge statements made in registration materials and prospectuses filed with the SEC in connection with eight securities offerings of stock and notes issued by Plains GP Holdings and Plains All American Pipeline and underwritten by BSI, among others. The plaintiffs seek unspecified monetary relief. On April 2, 2018, the court granted the defendants' motion to dismiss with prejudice. The plaintiffs appealed to the United States Court of Appeals for the Fifth Circuit. After briefing and oral argument, on July 16, 2019, the appellate court issued an opinion affirming the trial court’s dismissal of BSI. Additional review and/or appeal of the Fifth Circuit’s opinion is possible. The Company believes there are substantial defenses to these claims and intends to defend them vigorously. In October 2016, BSI was named as a defendant in a putative class action lawsuit filed in the District Court of Harris County, Texas, St. Lucie County Fire District Firefighters' Pension Trust, individually and on behalf of all others similarly situated v. Southwestern Energy Company, et al., wherein the plaintiffs allege that Southwestern Energy Company, its officers and directors, and the underwriting defendants (including BSI) made inaccurate and misleading statements in the registration statement and prospectus related to a securities offering. The plaintiffs seek unspecified monetary relief. The Company believes there are substantial defenses to these claims and intends to defend them vigorously. In December 2016, the Bank was named as a defendant in a putative class action lawsuit filed in the United States District Court for the Northern District of Alabama, Robert Hossfeld, individually and on behalf of all others similarly situated v. BBVA USA, alleging violations of the Telephone Consumer Protection Act in the context of customer satisfaction survey calls to the cell phones of individuals who have not given, or who have withdrawn, consent to receive calls on their cell phones. The plaintiffs seek unspecified monetary relief. The parties reached a settlement on November 6, 2018, and the Court entered a Preliminary Approval of Settlement Order on February 19, 2019. The Court entered its Order and Final Judgment approving the settlement on September 12, 2019. The Company and the Bank have been named in two proceedings involving David L. Powell: one that was filed in January 2017 with the Federal Conciliation and Arbitration Labor Board of Mexico City, Mexico, David Lannon Powell Finneran v. BBVA USA Bancshares, Inc., et al., and one that was filed in April 2018 in the United States District Court for the Northern District of Texas, David L. Powell, et al. v. BBVA USA. Powell alleges discrimination and wrongful termination in both proceedings, and seeks unspecified monetary relief. The Company believes there are substantial defenses to these claims and intends to defend them vigorously. In November 2017, the Bank was named as a defendant in a lawsuit filed in the United States District Court for the Southern District of New York and subsequently transferred to the United States District Court for the Northern District of Texas, Stabilis Fund II, LLC v. BBVA USA, alleging that the Bank fraudulently induced the plaintiff to purchase a loan that subsequently became the subject of litigation. The plaintiff seeks unspecified monetary relief. The Company believes there are substantial defenses to these claims and intends to defend them vigorously. In March 2018, the Company and BSI were named as defendants in a putative class action lawsuit filed in the United States District Court for the Southern District of New York, In re Mexican Government Bonds Antitrust Litigation, alleging that the defendant financial institutions engaged in collusion with respect to the purchase and sale of Mexican government bonds. Five substantially similar lawsuits were filed and consolidated with the original lawsuit. The plaintiffs seek injunctive and unspecified monetary relief. On September 30, 2019, the Court issued an Opinion and Order dismissing plaintiffs’ claims for failure to state a claim, while granting plaintiffs an opportunity to explain why the Court should grant leave to amend plaintiff's complaint. On October 21, 2019 plaintiffs filed a letter stating they intend to move for leave to amend. The Company believes there are substantial defenses to these claims and intends to defend them vigorously. In March 2019, the Company and its subsidiary, Simple Finance Technology Corp., were named as defendants in a putative class action lawsuit filed in the United States District Court for the Northern District of California, Amitahbo Chattopadhyay v. BBVA USA Bancshares, Inc., et al. Plaintiff claims that Simple and the Company only permit United States citizens to open Simple accounts (which are exclusively originated through online channels). Plaintiff alleges that this constitutes alienage discrimination and violations of California's Unruh Act. The Company believes that there are substantial defenses to these claims and intends to defend them vigorously. In July 2019, the Company was named as a defendant in a putative class action lawsuit filed in the United States District Court for the Northern District of Alabama, Ferguson v. BBVA USA Bancshares, Inc., wherein the plaintiffs allege certain investment options within the Company’s employee retirement plan violate provisions of ERISA. The plaintiffs seek unspecified monetary relief. The Company believes there are substantial defenses to these claims and intends to defend them vigorously. The Company is or may become involved from time to time in information-gathering requests, reviews, investigations and proceedings (both formal and informal) by various governmental regulatory agencies, law enforcement authorities and self-regulatory bodies regarding the Company’s business. Such matters may result in material adverse consequences, including without limitation adverse judgments, settlements, fines, penalties, orders, injunctions, alterations in the Company’s business practices or other actions, and could result in additional expenses and collateral costs, including reputational damage, which could have a material adverse impact on the Company’s business, consolidated financial position, results of operations or cash flows. The Company assesses its liabilities and contingencies in connection with outstanding legal proceedings utilizing the latest information available. Where it is probable that the Company will incur a loss and the amount of the loss can be reasonably estimated, the Company records a liability in its consolidated financial statements. These legal reserves may be increased or decreased to reflect any relevant developments. Where a loss is not probable or the amount of a probable loss is not reasonably estimable, the Company does not accrue legal reserves. At September 30, 2019, the Company had accrued legal reserves in the amount of $24 million. Additionally, for those matters where a loss is reasonably possible and the amount of loss is reasonably estimable, the Company estimates the amount of losses that it could incur beyond the accrued legal reserves. Under U.S. GAAP, an event is “reasonably possible” if “the chance of the future event or events occurring is more than remote but less than likely” and an event is “remote" if “the chance of the future event or events occurring is slight.” For a limited number of legal matters in which the Company is involved, the Company is able to estimate a range of reasonably possible losses in excess of related reserves, if any. Management currently estimates these losses to range from $0 to approximately $87 million. This estimated range of reasonably possible losses is based on information available at September 30, 2019. The matters underlying the estimated range will change from time to time, and the actual results may vary significantly from this estimate. Those matters for which an estimate is not possible are not included within this estimated range; therefore, this estimated range does not represent the Company’s maximum loss exposure. While the outcome of legal proceedings and the timing of the ultimate resolution are inherently difficult to predict, based on information currently available, advice of counsel and available insurance coverage, the Company believes that it has established adequate legal reserves. Further, based upon available information, the Company is of the opinion that these legal proceedings, individually or in the aggregate, will not have a material adverse effect on the Company’s financial condition or results of operations. However, in the event of unexpected future developments, it is possible that the ultimate resolution of those matters, if unfavorable, may be material to the Company’s results of operations for any particular period, depending, in part, upon the size of the loss or liability imposed and the operating results for the applicable period. Income Tax Review The Company is subject to review and examination from various tax authorities. The Company is currently under examination by a number of states, and has received notices of proposed adjustments related to state income taxes due for prior years. Management believes that adequate provisions for income taxes have been recorded. |
Loan Sales and Servicing |
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Transfers and Servicing [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan Sales and Servicing | Loan Sales and Servicing Loans held for sale were $134 million and $69 million at September 30, 2019 and December 31, 2018, respectively, and were comprised entirely of residential real estate - mortgage loans. The following table summarizes the Company's activity in the loans held for sale portfolio and loan sales, excluding activity related to loans originated for sale in the secondary market.
The following table summarizes the Company's sales of loans originated for sale in the secondary market.
The following table provides the recorded balance of loans sold with retained servicing and the related MSRs.
The fair value of MSRs is significantly affected by mortgage interest rates available in the marketplace, which influence mortgage loan prepayment speeds. In general, during periods of declining rates, the fair value of MSRs declines due to increasing prepayments attributable to increased mortgage-refinance activity. During periods of rising interest rates, the fair value of MSRs generally increases due to reduced refinance activity. The Company maintains a non-qualifying hedging strategy to manage a portion of the risk associated with changes in the fair value of the MSR portfolio. This strategy includes the purchase of various trading securities. The interest income, mark-to-market adjustments and gain or loss from sale activities associated with these securities are expected to economically hedge a portion of the change in the fair value of the MSR portfolio. The following table is an analysis of the activity in the Company’s MSRs.
See Note 9, Fair Value Measurements, for additional disclosures related to the assumptions and estimates used in determining fair value of MSRs. At September 30, 2019 and December 31, 2018, the sensitivity of the current fair value of the residential MSRs to immediate 10% and 20% adverse changes in key economic assumptions are included in the following table:
The sensitivity calculations above are hypothetical and should not be considered to be predictive of future performance. As indicated, changes in fair value based on adverse changes in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, in this table, the effect of an adverse variation in a particular assumption on the fair value of the MSRs is calculated without changing any other assumption; while in reality, changes in one assumption may result in changes to another, which may magnify or counteract the effect of the change. |
Debt Securities Available for Sale and Debt Securities Held to Maturity |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Securities Available for Sale and Debt Securities Held to Maturity | Debt Securities Available for Sale and Debt Securities Held to Maturity The following tables present the adjusted cost and approximate fair value of debt securities available for sale and debt securities held to maturity.
The investments held within the states and political subdivision caption of debt securities held to maturity relate to private placement transactions underwritten as loans by the Company but that meet the definition of a security within ASC Topic 320, Investments – Debt Securities. The following tables disclose the fair value and the gross unrealized losses of the Company’s available for sale debt securities and held to maturity debt securities that were in a loss position at September 30, 2019 and December 31, 2018. This information is aggregated by investment category and the length of time the individual securities have been in an unrealized loss position.
As indicated in the previous tables, at September 30, 2019, the Company held debt securities in unrealized loss positions. The Company does not intend to sell these securities nor is it more-likely-than-not-that it will be required to sell these securities before their anticipated recovery. The Company regularly evaluates each available for sale and held to maturity debt security in a loss position for OTTI. In its evaluation, the Company considers such factors as the length of time and the extent to which the fair value has been below cost, the financial condition of the issuer, the Company’s intent to hold the security to an expected recovery in market value and whether it is more-likely-than-not-that the Company will have to sell the security before its fair value recovers. Activity related to the credit loss component of the OTTI is recognized in earnings. The portion of OTTI related to all other factors is recognized in other comprehensive income. Management does not believe that any individual unrealized loss in the Company’s debt securities available for sale or held to maturity portfolios, presented in the preceding tables, represents an OTTI at either September 30, 2019 or December 31, 2018, other than those noted below. The following table discloses activity related to credit losses for debt securities where a portion of the OTTI was recognized in other comprehensive income.
For the three months ended September 30, 2019, there was no OTTI recognized and for the three months ended September 30, 2018, there was $283 thousand of OTTI recognized on held to maturity securities. For the nine months ended September 30, 2019 and 2018, there was $113 thousand and $592 thousand, respectively, of OTTI recognized on held to maturity securities. The debt securities primarily impacted by credit impairment are held to maturity non-agency collateralized mortgage obligations. The contractual maturities of the securities portfolios are presented in the following table.
The gross realized gains and losses recognized on sales of debt securities available for sale are shown in the table below.
|
Commitments, Contingencies and Guarantees - Commitments (Details) - USD ($) $ in Thousands |
Sep. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Guarantor Obligations [Line Items] | ||
Commitments to extend credit | $ 27,374,025 | $ 28,827,897 |
Financial Standby Letter of Credit | ||
Guarantor Obligations [Line Items] | ||
Standby and commercial letters of credit | $ 988,247 | $ 1,249,205 |
Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue | $ 210,564 | $ 181,370 | $ 595,091 | $ 554,537 | |||
Other revenues | [1] | 110,755 | 77,089 | 268,269 | 231,766 | ||
Total noninterest income | 321,319 | 258,459 | 863,360 | 786,303 | |||
Commercial Banking and Wealth | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue | 63,140 | 58,453 | 186,297 | 176,979 | |||
Other revenues | [1] | 3,861 | 5,421 | 8,927 | 11,033 | ||
Total noninterest income | 67,001 | 63,874 | 195,224 | 188,012 | |||
Retail Banking | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue | 87,506 | 80,439 | 251,304 | 232,367 | |||
Other revenues | [1] | 39,603 | 35,382 | 111,883 | 107,950 | ||
Total noninterest income | 127,109 | 115,821 | 363,187 | 340,317 | |||
Corporate and Investment Banking | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue | 30,017 | 15,717 | 72,935 | 67,507 | |||
Other revenues | [1] | 28,944 | 16,506 | 74,930 | 54,697 | ||
Total noninterest income | 58,961 | 32,223 | 147,865 | 122,204 | |||
Treasury and Corporate Support and Other | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue | 29,901 | 26,761 | 84,555 | 77,684 | |||
Other revenues | [1] | 38,347 | 19,780 | 72,529 | 58,086 | ||
Total noninterest income | 68,248 | 46,541 | 157,084 | 135,770 | |||
Service charges on deposit accounts | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue | 65,143 | 60,325 | 185,782 | 175,067 | |||
Service charges on deposit accounts | Commercial Banking and Wealth | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue | 12,750 | 11,911 | 37,784 | 34,681 | |||
Service charges on deposit accounts | Retail Banking | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue | 50,700 | 46,653 | 143,002 | 135,277 | |||
Service charges on deposit accounts | Corporate and Investment Banking | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue | 1,693 | 1,761 | 4,996 | 5,109 | |||
Service charges on deposit accounts | Treasury and Corporate Support and Other | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue | 0 | 0 | 0 | 0 | |||
Card and merchant processing fees | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue | 50,385 | 44,219 | 146,742 | 127,945 | |||
Card and merchant processing fees | Commercial Banking and Wealth | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue | 9,698 | 7,113 | 27,158 | 21,220 | |||
Card and merchant processing fees | Retail Banking | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue | 36,806 | 33,786 | 108,302 | 97,090 | |||
Card and merchant processing fees | Corporate and Investment Banking | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue | 0 | 0 | 0 | 0 | |||
Card and merchant processing fees | Treasury and Corporate Support and Other | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue | 3,881 | 3,320 | 11,282 | 9,635 | |||
Investment services sales fees | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue | 29,287 | 28,286 | 87,316 | 88,176 | |||
Investment services sales fees | Commercial Banking and Wealth | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue | 29,287 | 28,286 | 87,316 | 88,176 | |||
Investment services sales fees | Retail Banking | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue | 0 | 0 | 0 | 0 | |||
Investment services sales fees | Corporate and Investment Banking | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue | 0 | 0 | 0 | 0 | |||
Investment services sales fees | Treasury and Corporate Support and Other | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue | 0 | 0 | 0 | 0 | |||
Money transfer income | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue | 26,020 | 23,441 | 73,273 | 68,049 | |||
Money transfer income | Commercial Banking and Wealth | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue | 0 | 0 | 0 | 0 | |||
Money transfer income | Retail Banking | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue | 0 | 0 | 0 | 0 | |||
Money transfer income | Corporate and Investment Banking | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue | 0 | 0 | 0 | 0 | |||
Money transfer income | Treasury and Corporate Support and Other | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue | 26,020 | 23,441 | 73,273 | 68,049 | |||
Investment banking and advisory fees | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue | 28,324 | 13,956 | 67,939 | 62,398 | |||
Investment banking and advisory fees | Commercial Banking and Wealth | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue | 0 | 0 | 0 | 0 | |||
Investment banking and advisory fees | Retail Banking | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue | 0 | 0 | 0 | 0 | |||
Investment banking and advisory fees | Corporate and Investment Banking | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue | 28,324 | 13,956 | 67,939 | 62,398 | |||
Investment banking and advisory fees | Treasury and Corporate Support and Other | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue | 0 | 0 | 0 | 0 | |||
Asset management fees | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue | 11,405 | 11,143 | 34,039 | 32,902 | |||
Asset management fees | Commercial Banking and Wealth | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue | 11,405 | 11,143 | 34,039 | 32,902 | |||
Asset management fees | Retail Banking | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue | 0 | 0 | 0 | 0 | |||
Asset management fees | Corporate and Investment Banking | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue | 0 | 0 | 0 | 0 | |||
Asset management fees | Treasury and Corporate Support and Other | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenue | $ 0 | $ 0 | $ 0 | $ 0 | |||
|
Fair Value Measurements - Assets measured on a recurring basis (Details) - Fair Value, measurements, recurring - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
||||
Interest rate contracts | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||||
Balance, beginning of year | $ 3,847 | $ 2,610 | $ 2,012 | $ 2,416 | |||
Total gains or losses (realized/unrealized): | |||||||
Included in earnings | [1] | 191 | (475) | 2,026 | (281) | ||
Purchases, issuances, sales and settlements: | |||||||
Balance, end of year | 4,038 | 2,135 | 4,038 | 2,135 | |||
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held | 191 | (475) | 2,026 | (281) | |||
Other assets - MSRs | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||||
Balance, beginning of year | 41,966 | 54,276 | 51,539 | 49,597 | |||
Total gains or losses (realized/unrealized): | |||||||
Included in earnings | [1] | (6,301) | (558) | (18,579) | 449 | ||
Purchases, issuances, sales and settlements: | |||||||
Issuances | 1,600 | 1,594 | 4,305 | 5,266 | |||
Balance, end of year | 37,265 | 55,312 | 37,265 | 55,312 | |||
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held | (6,301) | (558) | (18,579) | 449 | |||
Other assets - SBIC investments | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||||
Balance, beginning of year | 102,065 | 41,513 | 80,074 | 45,042 | |||
Total gains or losses (realized/unrealized): | |||||||
Included in earnings | [1] | 10,239 | 24,310 | (6,673) | |||
Purchases, issuances, sales and settlements: | |||||||
Purchases | 7,944 | 1,209 | 15,864 | 4,353 | |||
Balance, end of year | 120,248 | 42,722 | 120,248 | 42,722 | |||
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held | $ 10,239 | $ 0 | $ 24,310 | $ (6,673) | |||
|
Fair Value Measurements - Unpaid Principle Balances (Details) - Residential mortgage loans held for sale - USD ($) $ in Thousands |
Sep. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Aggregate Fair Value | $ 134,314 | $ 68,766 |
Aggregate Unpaid Principal Balance | 130,043 | 66,052 |
Difference | $ 4,271 | $ 2,714 |
Derivatives and Hedging - Derivatives by Balance Sheet Location (Details) - USD ($) $ in Thousands |
Sep. 30, 2019 |
Dec. 31, 2018 |
||||||||
---|---|---|---|---|---|---|---|---|---|---|
Derivatives, Fair Value [Line Items] | ||||||||||
Derivative assets | $ 75,652 | $ 82,168 | ||||||||
Derivative liabilities | 111,107 | 99,579 | ||||||||
Derivatives designated as hedging instrument | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Derivative assets | [1] | 30,291 | 16,020 | |||||||
Derivative liabilities | [2] | 3,419 | 30,417 | |||||||
Derivatives designated as hedging instrument | Fair value hedges | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Derivative assets | [1] | 30,240 | 13,479 | |||||||
Derivative liabilities | [2] | 0 | 28,479 | |||||||
Derivatives designated as hedging instrument | Fair value hedges | Interest rate swaps related to long-term debt | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Derivative, notional amount | 2,923,950 | 2,923,950 | ||||||||
Derivative assets | [1] | 30,240 | 13,479 | |||||||
Derivative liabilities | [2] | 0 | 28,479 | |||||||
Derivatives designated as hedging instrument | Cash flow hedges | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Derivative assets | [1] | 51 | 2,541 | |||||||
Derivative liabilities | [2] | 3,419 | 1,938 | |||||||
Derivatives designated as hedging instrument | Cash flow hedges | Swaps related to commercial loans | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Derivative, notional amount | 7,000,000 | 1,500,000 | ||||||||
Derivative assets | [1] | 0 | 2,367 | |||||||
Derivative liabilities | [2] | 0 | 0 | |||||||
Derivatives designated as hedging instrument | Cash flow hedges | Swaps related to FHLB advances | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Derivative, notional amount | 120,000 | 120,000 | ||||||||
Derivative assets | [1] | 0 | 0 | |||||||
Derivative liabilities | [2] | 3,419 | 1,938 | |||||||
Derivatives designated as hedging instrument | Cash flow hedges | Foreign exchange contracts | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Derivative, notional amount | 1,380 | 5,272 | ||||||||
Derivative assets | [1] | 51 | 174 | |||||||
Derivative liabilities | [2] | 0 | 0 | |||||||
Free-standing derivatives not designated as hedging instrument | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Derivative assets | [1] | 459,881 | 186,707 | |||||||
Derivative liabilities | [2] | 155,330 | 166,317 | |||||||
Free-standing derivatives not designated as hedging instrument | Forward contracts related to held for sale mortgages | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Derivative, notional amount | 307,980 | 166,641 | ||||||||
Derivative assets | [1] | 252 | 187 | |||||||
Derivative liabilities | [2] | 605 | 1,021 | |||||||
Free-standing derivatives not designated as hedging instrument | Option contracts related to mortgage servicing rights | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Derivative, notional amount | 75,000 | 0 | ||||||||
Derivative assets | [1] | 234 | 0 | |||||||
Derivative liabilities | [2] | 0 | 0 | |||||||
Free-standing derivatives not designated as hedging instrument | Interest rate lock commitments | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Derivative, notional amount | 180,127 | 91,395 | ||||||||
Derivative assets | [1] | 4,038 | 2,012 | |||||||
Derivative liabilities | [2] | 0 | 0 | |||||||
Free-standing derivatives not designated as hedging instrument | Purchased equity option related to equity-linked CDs | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Derivative, notional amount | 209,724 | 450,660 | ||||||||
Derivative assets | [1] | 6,989 | 14,185 | |||||||
Derivative liabilities | 0 | [2] | 0 | |||||||
Free-standing derivatives not designated as hedging instrument | Written equity option related to equity-linked CDs | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Derivative, notional amount | 179,156 | 389,030 | ||||||||
Derivative assets | [1] | 0 | 0 | |||||||
Derivative liabilities | [2] | 5,966 | 12,434 | |||||||
Free-standing derivatives not designated as hedging instrument | Forwards and swaps related to commercial loans | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Derivative, notional amount | 525,441 | 413,127 | ||||||||
Derivative assets | [1] | 3,532 | 1,565 | |||||||
Derivative liabilities | [2] | 1,128 | 1,109 | |||||||
Free-standing derivatives not designated as hedging instrument | Spots related to commercial loans | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Derivative, notional amount | 15,343 | 19,911 | ||||||||
Derivative assets | [1] | 4 | 24 | |||||||
Derivative liabilities | [2] | 28 | 2 | |||||||
Free-standing derivatives not designated as hedging instrument | Swap associated with sale of Visa, Inc. Class B shares | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Derivative, notional amount | 148,907 | 111,466 | ||||||||
Derivative assets | [1] | 0 | 0 | |||||||
Derivative liabilities | [2] | 5,494 | 3,706 | |||||||
Free-standing derivatives not designated as hedging instrument | Futures contracts | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Derivative, notional amount | [3] | 4,470,000 | 3,223,000 | |||||||
Derivative assets | [1],[3] | 0 | 0 | |||||||
Derivative liabilities | [2],[3] | 0 | 0 | |||||||
Free-standing derivatives not designated as hedging instrument | Total trading account assets and liabilities | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Derivative assets | [1] | 444,832 | 168,734 | |||||||
Derivative liabilities | [2] | 142,109 | 148,045 | |||||||
Free-standing derivatives not designated as hedging instrument | Interest rate contracts for customers | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Derivative, notional amount | 35,268,019 | 34,436,223 | ||||||||
Derivative assets | [1] | 415,139 | 149,269 | |||||||
Derivative liabilities | [2] | 114,662 | 130,704 | |||||||
Free-standing derivatives not designated as hedging instrument | Foreign exchange contracts for customers | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Derivative, notional amount | 1,094,649 | 1,140,665 | ||||||||
Derivative assets | [1] | 29,693 | 19,465 | |||||||
Derivative liabilities | [2] | $ 27,447 | $ 17,341 | |||||||
|
Loan Sales and Servicing - Sales in the Secondary Market (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Net gains recognized on sales of residential real estate loans originated for sale in the secondary market | $ 20,745 | $ 14,858 | |||||||
Originated For Sale In The Secondary Market | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Residential real estate loans originated for sale in the secondary market sold | [1] | $ 188,550 | $ 148,967 | 488,940 | 479,684 | ||||
Net gains recognized on sales of residential real estate loans originated for sale in the secondary market | [2] | 8,101 | 5,409 | 20,745 | 14,858 | ||||
Servicing fees recognized | [2] | $ 2,703 | $ 2,544 | $ 8,007 | $ 8,181 | ||||
|
Segment Information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of segment reporting information | The following tables present the segment information for the Company’s existing segments.
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Debt Securities Available for Sale and Debt Securities Held to Maturity - Adjusted cost and fair value of securities (Details) - USD ($) $ in Thousands |
Sep. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Debt securities available for sale: | ||
Available-for-sale securities, amortized cost | $ 7,614,873 | $ 11,176,198 |
Available-for-sale securities, gross unrealized gain | 52,345 | 26,486 |
Available-for-sale securities, gross unrealized losses | 54,628 | 221,468 |
Debt securities available for sale | 7,612,590 | 10,981,216 |
Debt securities held to maturity: | ||
Held-to-maturity securities, amortized cost | 6,334,634 | 2,885,613 |
Held-to-maturity securities, gross unrealized gain | 199,204 | 55,077 |
Held-to-maturity securities, gross unrealized losses | 19,342 | 15,270 |
Debt securities held to maturity, estimated fair value | 6,514,496 | 2,925,420 |
U.S. Treasury and other U.S. government agencies | ||
Debt securities available for sale: | ||
Available-for-sale securities, amortized cost | 3,186,688 | 5,525,902 |
Available-for-sale securities, gross unrealized gain | 20,413 | 13,000 |
Available-for-sale securities, gross unrealized losses | 38,600 | 107,435 |
Debt securities available for sale | 3,168,501 | 5,431,467 |
Debt securities held to maturity: | ||
Held-to-maturity securities, amortized cost | 1,285,850 | |
Held-to-maturity securities, gross unrealized gain | 62,972 | |
Held-to-maturity securities, gross unrealized losses | 0 | |
Debt securities held to maturity, estimated fair value | 1,348,822 | |
Agency mortgage-backed securities | ||
Debt securities available for sale: | ||
Available-for-sale securities, amortized cost | 1,477,410 | 2,156,872 |
Available-for-sale securities, gross unrealized gain | 18,125 | 9,402 |
Available-for-sale securities, gross unrealized losses | 9,710 | 36,453 |
Debt securities available for sale | 1,485,825 | 2,129,821 |
Agency collateralized mortgage obligations | ||
Debt securities available for sale: | ||
Available-for-sale securities, amortized cost | 2,950,019 | 3,492,538 |
Available-for-sale securities, gross unrealized gain | 13,760 | 4,021 |
Available-for-sale securities, gross unrealized losses | 6,318 | 77,580 |
Debt securities available for sale | 2,957,461 | 3,418,979 |
State and political subdivisions | ||
Debt securities available for sale: | ||
Available-for-sale securities, amortized cost | 756 | 886 |
Available-for-sale securities, gross unrealized gain | 47 | 63 |
Available-for-sale securities, gross unrealized losses | 0 | 0 |
Debt securities available for sale | 803 | 949 |
Debt securities held to maturity: | ||
Held-to-maturity securities, amortized cost | 635,784 | 687,615 |
Held-to-maturity securities, gross unrealized gain | 12,384 | 18,545 |
Held-to-maturity securities, gross unrealized losses | 6,739 | 3,332 |
Debt securities held to maturity, estimated fair value | 641,429 | 702,828 |
Agency | ||
Debt securities held to maturity: | ||
Held-to-maturity securities, amortized cost | 4,318,121 | 2,089,860 |
Held-to-maturity securities, gross unrealized gain | 114,366 | 26,988 |
Held-to-maturity securities, gross unrealized losses | 11,071 | 10,338 |
Debt securities held to maturity, estimated fair value | 4,421,416 | 2,106,510 |
Non-agency | ||
Debt securities held to maturity: | ||
Held-to-maturity securities, amortized cost | 39,657 | 46,834 |
Held-to-maturity securities, gross unrealized gain | 8,132 | 7,198 |
Held-to-maturity securities, gross unrealized losses | 196 | 1,129 |
Debt securities held to maturity, estimated fair value | 47,593 | 52,903 |
Asset-backed securities and other | ||
Debt securities held to maturity: | ||
Held-to-maturity securities, amortized cost | 55,222 | 61,304 |
Held-to-maturity securities, gross unrealized gain | 1,350 | 2,346 |
Held-to-maturity securities, gross unrealized losses | 1,336 | 471 |
Debt securities held to maturity, estimated fair value | $ 55,236 | $ 63,179 |
Leases |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases The Company leases certain land, office space, and branches. These leases are generally for periods of 10 to 20 years with various renewal options. The Company, by policy, does not include renewal options for facility leases as part of its right-of-use assets and lease liabilities unless they are deemed reasonably certain to be exercised. Variable lease payments that are dependent on an index or a rate are initially measured using the index or rate at the commencement date and are included in the measurement of lease liability. Variable lease payments that are not dependent on an index or a rate or changes in variable payments based on an index or rate after the commencement date are excluded from the measurement of the lease liability and recognized in profit and loss in accordance with Topic 842. Variable lease payments are defined as payments made for the right to use an asset that vary because of changes in facts or circumstances occurring after the commencement date, other than the passage of time. The Company has made a policy election to not apply the recognition requirements of ASC 842 to all short-term leases. Instead, the short-term lease payments will be recognized in profit or loss on a straight-line basis over the lease term and variable lease payments in the period in which the obligation for those payments is incurred. As a practical expedient, the Company has also made a policy election to not separate nonlease components from lease components and instead account for each separate lease component and the nonlease components associated with that lease component as a single lease component. The Company determines whether a contract contains a lease based on whether a contract, or a part of a contract, that conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The discount rate is determined as the rate implicit in the lease or when a rate cannot be readily determined, the Company’s incremental borrowing rate. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. The following table summarizes the Company’s lease portfolio classification and respective right-of-use asset balances and lease liability balances which are included in other assets and accrued expenses and other liabilities, respectively, on the Company’s Unaudited Condensed Consolidated Balance Sheets.
The table below presents information about the Company's total lease costs which include amounts recognized on the Company’s Unaudited Condensed Consolidated Statements of Income during the period.
The table below presents supplemental cash flow information arising from lease transactions and noncash information on lease liabilities arising from obtaining right-of-use assets.
The weighted-average remaining lease term and discount rates at September 30, 2019 were as follows:
The following table provides the annual undiscounted future minimum payments under finance and noncanceable operating leases at September 30, 2019:
At September 30, 2019 the Company had no additional operating or finance leases that had not yet commenced that would create significant rights and obligations for the Company as a lessee. The table below presents a reconciliation of the undiscounted cash flows to the finance lease liabilities and operating lease liabilities.
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Leases | Leases The Company leases certain land, office space, and branches. These leases are generally for periods of 10 to 20 years with various renewal options. The Company, by policy, does not include renewal options for facility leases as part of its right-of-use assets and lease liabilities unless they are deemed reasonably certain to be exercised. Variable lease payments that are dependent on an index or a rate are initially measured using the index or rate at the commencement date and are included in the measurement of lease liability. Variable lease payments that are not dependent on an index or a rate or changes in variable payments based on an index or rate after the commencement date are excluded from the measurement of the lease liability and recognized in profit and loss in accordance with Topic 842. Variable lease payments are defined as payments made for the right to use an asset that vary because of changes in facts or circumstances occurring after the commencement date, other than the passage of time. The Company has made a policy election to not apply the recognition requirements of ASC 842 to all short-term leases. Instead, the short-term lease payments will be recognized in profit or loss on a straight-line basis over the lease term and variable lease payments in the period in which the obligation for those payments is incurred. As a practical expedient, the Company has also made a policy election to not separate nonlease components from lease components and instead account for each separate lease component and the nonlease components associated with that lease component as a single lease component. The Company determines whether a contract contains a lease based on whether a contract, or a part of a contract, that conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The discount rate is determined as the rate implicit in the lease or when a rate cannot be readily determined, the Company’s incremental borrowing rate. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. The following table summarizes the Company’s lease portfolio classification and respective right-of-use asset balances and lease liability balances which are included in other assets and accrued expenses and other liabilities, respectively, on the Company’s Unaudited Condensed Consolidated Balance Sheets.
The table below presents information about the Company's total lease costs which include amounts recognized on the Company’s Unaudited Condensed Consolidated Statements of Income during the period.
The table below presents supplemental cash flow information arising from lease transactions and noncash information on lease liabilities arising from obtaining right-of-use assets.
The weighted-average remaining lease term and discount rates at September 30, 2019 were as follows:
The following table provides the annual undiscounted future minimum payments under finance and noncanceable operating leases at September 30, 2019:
At September 30, 2019 the Company had no additional operating or finance leases that had not yet commenced that would create significant rights and obligations for the Company as a lessee. The table below presents a reconciliation of the undiscounted cash flows to the finance lease liabilities and operating lease liabilities.
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Loans and Allowance for Loan Losses |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans and Allowance for Loan Losses | Loans and Allowance for Loan Losses The following table presents the composition of the loan portfolio.
Allowance for Loan Losses and Credit Quality The following table, which excludes loans held for sale, presents a summary of the activity in the allowance for loan losses. The portion of the allowance that has not been identified by the Company as related to specific loan categories has been allocated to the individual loan categories on a pro rata basis for purposes of the table below:
The table below provides a summary of the allowance for loan losses and related loan balances by portfolio.
The following tables present information on individually evaluated impaired loans, by loan class.
The following tables present information on individually evaluated impaired loans, by loan class.
Detailed information on the Company's allowance for loan losses methodology and the Company's impaired loan policy are included in the Notes to the Company's Consolidated Financial Statements for the year ended December 31, 2018. The Company monitors the credit quality of its commercial portfolio using an internal dual risk rating, which considers both the obligor and the facility. The obligor risk ratings are defined by ranges of default probabilities of the borrowers, through internally assigned letter grades (AAA through D2) and the facility risk ratings are defined by ranges of the loss given default. The combination of those two approaches results in the assessment of the likelihood of loss and it is mapped to the regulatory classifications. The Company assigns internal risk ratings at loan origination and at regular intervals subsequent to origination. Loan review intervals are dependent on the size and risk grade of the loan, and are generally conducted at least annually. Additional reviews are conducted when information affecting the loan’s risk grade becomes available. The general characteristics of the risk grades are as follows:
The Company considers payment history as the best indicator of credit quality for the consumer portfolio. Nonperforming loans in the tables below include loans classified as nonaccrual, loans 90 days or more past due and loans modified in a TDR 90 days or more past due. The following tables, which exclude loans held for sale, illustrate the credit quality indicators associated with the Company’s loans, by loan class.
The following tables present an aging analysis of the Company’s past due loans, excluding loans classified as held for sale.
Policies related to the Company's nonaccrual and past due loans are included in the Company's Consolidated Financial Statements for the year ended December 31, 2018. It is the Company’s policy to classify TDRs that are not accruing interest as nonaccrual loans. It is also the Company’s policy to classify TDR past due loans that are accruing interest as TDRs and not according to their past due status. The tables above reflect this policy. Modifications to borrowers' loan agreements are considered TDRs if a concession is granted for economic or legal reasons related to a borrower’s financial difficulties that otherwise would not be considered. Within each of the Company’s loan classes, TDRs typically involve modification of the loan interest rate to a below market rate or an extension or deferment of the loan. During the three months ended September 30, 2019, $7.8 million of TDR modifications included an interest rate concession and $25.0 million of TDR modifications resulted from modifications to the loan’s structure. During the three months ended September 30, 2018, $1.9 million of TDR modifications included an interest rate concession and $106.5 million of TDR modifications resulted from modifications to the loan’s structure. During the nine months ended September 30, 2019, $17.3 million of TDR modifications included an interest rate concession and $57.8 million of TDR modifications resulted from modifications to the loan’s structure. During the nine months ended September 30, 2018, $25.3 million of TDR modifications included an interest rate concession and $113.0 million of TDR modifications resulted from modifications to the loan’s structure. The following tables present an analysis of the types of loans that were restructured and classified as TDRs, excluding loans classified as held for sale.
The impact to the allowance for loan losses related to modifications classified as TDRs were approximately $6.7 million and $18.3 million for the three and nine months ended September 30, 2019, respectively. The impact to the allowance for loan losses related to modifications classified as TDRs were $(100) thousand and $11.2 million for the three and nine months ended September 30, 2018, respectively. The Company considers TDRs aged 90 days or more past due, charged off or classified as nonaccrual subsequent to modification, where the loan was not classified as a nonperforming loan at the time of modification, as subsequently defaulted. The following tables provide a summary of initial subsequent defaults that occurred within one year of the restructure date. The tables exclude loans classified as held for sale as of period-end and includes loans no longer in default as of period-end.
All commercial and consumer loans modified in a TDR are considered to be impaired, even if they maintain their accrual status. At September 30, 2019 and December 31, 2018, there were $60.4 million and $54.2 million, respectively, of commitments to lend additional funds to borrowers whose terms have been modified in a TDR. Foreclosure Proceedings OREO totaled $19 million and $17 million at September 30, 2019 and December 31, 2018, respectively. OREO included $16 million and $14 million of foreclosed residential real estate properties at September 30, 2019 and December 31, 2018, respectively. As of September 30, 2019 and December 31, 2018, there were $53 million and $62 million, respectively, of loans secured by residential real estate properties for which formal foreclosure proceedings were in process. |
Basis of Presentation |
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Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation General Effective June 10, 2019, the Company amended its Certificate of Formation to change its legal name from BBVA Compass Bancshares, Inc. to BBVA USA Bancshares, Inc. The accounting and reporting policies of the Company and the methods of applying those policies that materially affect the consolidated financial statements conform with U.S. GAAP and with general financial services industry practices. The accompanying unaudited consolidated financial statements include the accounts of BBVA USA Bancshares, Inc. and its subsidiaries and have been prepared in conformity with U.S. GAAP for interim financial information and in accordance with the instructions to Quarterly Report on Form 10-Q and Article 10 of Regulation S-X as promulgated by the Securities and Exchange Commission. In the opinion of management, all adjustments, consisting of normal and recurring items, necessary for the fair presentation of the condensed consolidated financial statements have been included. Operating results for the three and nine months ended September 30, 2019, are not necessarily indicative of the results that may be expected for the year ended December 31, 2019. These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. The Company has evaluated subsequent events for potential recognition and disclosure through the filing date of this Quarterly Report on Form 10-Q to determine if either recognition or disclosure of significant events or transactions is required. Use of Estimates in the Preparation of Consolidated Financial Statements The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period, the most significant of which relate to the allowance for loan losses, goodwill impairment, fair value measurements and income taxes. Actual results could differ from those estimates. Recently Adopted Accounting Standards Leases In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) which supersedes ASC Topic 840, Leases. Subsequently, the FASB issued ASU 2018-01 in January 2018 which provides a practical expedient for land easements and issued ASU 2018-11 in July 2018 which includes an option to recognize a cumulative effect adjustment to retained earnings in the period of adoption instead of applying the guidance to prior comparative periods. This ASU, as amended, requires lessees to recognize right-of-use assets and associated liabilities that arise from leases, with the exception of short-term leases. Subsequent accounting for leases varies depending on whether the lease is classified as an operating lease or a finance lease. This ASU, as amended, does not make significant changes to lessor accounting. There are several new qualitative and quantitative disclosures required. Upon transition, lessees and lessors have the option to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective transition approach or to apply the modified retrospective approach with an additional, optional transition method that initially applies this ASU as of the adoption date and recognizes a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. The Company adopted this ASU, as amended, on January 1, 2019 using the optional transition method, which allowed for a modified retrospective method of adoption with a cumulative effect adjustment to retained earnings without restating comparable periods. The Company also elected the transition relief package of practical expedients for which there is no requirement to reassess existence of leases, their classification, and initial direct costs as well as an exemption for short term leases with a term of less than one year. The Company did not elect the practical expedient to use hindsight in determining the lease term and in assessing impairment of right-of-use assets. At January 1, 2019, the Company recognized right-of-use assets of $290 million and lease liabilities of $332 million. The right-of-use assets and corresponding lease liabilities, recorded upon adoption, were primarily based on the present value of unpaid future minimum lease payments as of January 1, 2019. Those amounts were impacted by assumptions related to renewals and/or extensions of existing lease contracts and the interest rate used to discount those future lease obligations. Additionally, the Company recognized a cumulative effect adjustment of approximately $3.5 million at adoption to increase the beginning balance of retained earnings as of January 1, 2019 for the remaining deferred gains on sale-leaseback transactions which occurred prior to adoption. This ASU will not have a material impact on the timing of expense recognition on the Company's results of operations. See Note 7, Leases, for the required disclosures in accordance with this ASU. Premium Amortization on Purchased Callable Debt Securities In March 2017, the FASB issued ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities. The amendments in this ASU reduce the amortization period for certain callable debt securities carried at a premium and require the premium to be amortized over a period not to exceed the earliest call date. These amendments do not apply to securities carried at a discount. The Company adopted this ASU on January 1, 2019. The adoption of this standard had no impact on the financial condition or results of operations of the Company. Derivatives and Hedging In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities. The amendments in this ASU better align an entity's risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. In October 2018, the FASB issued ASU 2018-16, Inclusion of the SOFR OIS Rate as a Benchmark Interest Rate for Hedge Accounting Purposes. The amendments in this ASU permit the OIS rate based on SOFR as a US benchmark interest rate for hedge accounting purposes under Topic 815. The Company adopted these ASUs on January 1, 2019. The adoption of these standards did not have a material impact on the financial condition or results of operations of the Company. The adoption resulted in an immaterial cumulative effect adjustment to the opening balance of retained earnings. For additional information on the Company’s derivative and hedging activities, see Note 5, Derivatives and Hedging. Comprehensive Income In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendments in this ASU allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. The Company adopted this ASU on January 1, 2019 and reclassified approximately $35.4 million from accumulated other comprehensive income to retained earnings. Recently Issued Accounting Standards Not Yet Adopted Credit Losses In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses, which introduces new guidance for the accounting for credit losses on instruments within its scope. The new approach changes the impairment model for most financial assets, and will require the use of an “expected credit loss” model for financial instruments measured at amortized cost and certain other instruments. This model applies to receivables, loans, debt securities, and off-balance sheet credit exposures. This model requires entities to estimate the lifetime expected credit loss on such instruments and record an allowance that represents the portion of the amortized cost basis that the entity does not expect to collect. This allowance is deducted from the financial asset’s amortized cost basis to present the net amount expected to be collected. The new expected credit loss model will also apply to purchased financial assets with credit deterioration, superseding current accounting guidance for such assets. The amended guidance also amends the impairment model for available-for-sale debt securities, requiring entities to determine whether all or a portion of the unrealized loss on such securities is a credit loss, and also eliminating the option for management to consider the length of time a security has been in an unrealized loss position as a factor in concluding whether or not a credit loss exists. The amended model states that an entity will recognize an allowance for credit losses on available-for-sale debt securities as a contra account to the amortized cost basis, instead of a direct reduction of the amortized cost basis of the investment, as under current guidance. As a result, entities will recognize improvements to estimated credit losses on available-for-sale debt securities immediately in earnings as opposed to in interest income over time. There are also additional disclosure requirements included in this guidance. The amendments in this ASU are effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2019. Early application of this ASU is permitted. The Company intends to adopt this standard on January 1, 2020. Adoption will be applied on a modified retrospective basis with the cumulative effect of initially applying the amendments recognized in retained earnings at the date of initial application. However, certain provisions of the guidance are only required to be applied on a prospective basis. The Company’s implementation process includes data sourcing and validation, loss model development, development of governance processes, development of a qualitative framework, documentation and governance surrounding economic forecast for credit loss purposes, evaluation of technical accounting topics, updates to allowance policies and methodology documentation, development of reporting processes and related internal controls, and overall operational readiness for adoption of the amended guidance, which will continue throughout 2019, including parallel runs alongside the Company’s current allowance process. Parallel runs that have been more focused on the operational process have been performed in the second and third quarters of 2019. Parallel runs will be enhanced throughout the remainder of 2019 to include the qualitative framework, supporting analytics, end-to-end governance, internal controls and disclosures. The Company provides updates to senior management and the Audit Committee. These communications provide an update on the status of the implementation project plan and any identified risks. The Company is currently in the process of evaluating the impact of the amended guidance on its Condensed Consolidated Financial Statements. It currently expects the allowance for loan losses to increase upon adoption given that the allowance will be required to cover the expected life of the loan portfolio upon adoption. The extent of this impact is still being evaluated and will depend on economic conditions, economic forecasts and the composition and credit quality of the Company's loan portfolio at the time of adoption. The amended guidance in this ASU eliminates the current accounting model for purchased-credit-impaired loans, but requires an allowance to be recognized for purchased-credit-deteriorated assets (those that have experienced more-than-insignificant deterioration in credit quality since origination). The Company will have no impact from purchased-credit-deteriorated assets upon adoption. Upon adoption, the Company does not expect to record a material allowance with respect to HTM and AFS securities as the portfolios consist primarily of agency-backed securities that inherently have minimal nonpayment risk. In November 2018, the FASB issued ASU 2018-19 and in April and May 2019, the FASB issued ASU 2019-04 and ASU 2019-05, respectively, which made minor clarifications to the guidance in ASU 2016-13. The FASB has also established a Transition Resource Group for Credit Losses to evaluate implementation issues arising from the amended guidance and make recommendations to the FASB on which issues may warrant the issuance of additional clarifying guidance. The Company continues to monitor the issues discussed by the Transition Resource Group and the recommended amendments proposed to the FASB as part of its implementation analysis. Goodwill In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which simplifies the manner in which an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Under the amendments in this ASU, an entity should (1) perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, and (2) recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, with the understanding that the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, ASU No. 2017-04 removes the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails such qualitative test, to perform Step 2 of the goodwill impairment test. This ASU is effective for fiscal years beginning after December 15, 2019, and for interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The ASU should be applied using a prospective method. Based on the Company’s most recent qualitative goodwill impairment assessment performed as of October 31, 2018, there were no reporting units for which it was more-likely-than-not that the carrying amount of a reporting unit exceeded its respective fair value; therefore, this ASU would not currently have an impact on the Company’s Consolidated Financial Statements or related disclosures. However, if upon adoption, which is expected to occur on January 1, 2020, the carrying amount of a reporting unit exceeds its respective fair value, the Company would be required to recognize an impairment charge for the amount that the carrying value exceeds the fair value. Fair Value Measurements In August 2018, the FASB issued ASU 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurements. The amendments in this ASU modify the disclosure requirements for fair value measurements in Topic 820, Fair Value Measurements. This ASU is effective for fiscal years beginning after December 15, 2019, and for interim periods within those fiscal years. Early adoption is permitted. The Company is currently assessing the impact that the adoption of this standard will have on its fair value disclosures. Internal-Use Software In August 2018, the FASB issued ASU 2018-15, Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. The amendments in this ASU align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software and hosting arrangements that include an internal-use software license. This ASU is effective for fiscal years beginning after December 15, 2019, and for interim periods within those fiscal years. Early adoption is permitted. The Company is currently assessing the impact that the adoption of this standard will have on the financial condition and results of operations of the Company. |
Supplemental Disclosure for Statement of Cash Flows |
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Supplemental Disclosure for Statement of Cash Flows | Supplemental Disclosure for Statement of Cash Flows The following table presents the Company’s supplemental disclosures for statement of cash flows.
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Company’s Unaudited Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Company's Unaudited Condensed Consolidated Statements of Cash Flows.
Restricted cash primarily represents cash collateral related to the Company's derivatives as well as amounts restricted for regulatory purposes related to BSI and BBVA Transfer Holdings, Inc. Restricted cash is included in other assets on the Company’s Unaudited Condensed Consolidated Balance Sheets. |
Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands |
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Interest income: | ||||
Interest and fees on loans | $ 771,245 | $ 751,470 | $ 2,359,500 | $ 2,126,411 |
Interest on debt securities available for sale | 36,051 | 53,201 | 134,698 | 163,595 |
Interest on debt securities held to maturity | 38,893 | 16,110 | 101,701 | 41,598 |
Interest on trading account assets | 487 | 833 | 1,627 | 2,507 |
Interest and dividends on other earning assets | 46,528 | 17,449 | 105,319 | 44,240 |
Total interest income | 893,204 | 839,063 | 2,702,845 | 2,378,351 |
Interest expense: | ||||
Interest on deposits | 203,979 | 139,898 | 588,811 | 353,568 |
Interest on FHLB and other borrowings | 32,975 | 37,131 | 104,901 | 93,799 |
Interest on federal funds purchased and securities sold under agreements to repurchase | 15,137 | 3,169 | 24,886 | 5,104 |
Interest on other short-term borrowings | 72 | 579 | 368 | 1,490 |
Total interest expense | 252,163 | 180,777 | 718,966 | 453,961 |
Net interest income | 641,041 | 658,286 | 1,983,879 | 1,924,390 |
Provision for loan losses | 140,629 | 94,964 | 477,939 | 243,273 |
Net interest income after provision for loan losses | 500,412 | 563,322 | 1,505,940 | 1,681,117 |
Noninterest income: | ||||
Noninterest income | 210,564 | 181,370 | 595,091 | 554,537 |
Corporate and correspondent investment sales | 11,799 | 12,490 | 24,298 | 40,901 |
Mortgage banking | 8,204 | 6,717 | 19,011 | 23,078 |
Bank owned life insurance | 3,508 | 4,597 | 12,895 | 13,187 |
Investment securities gains, net | 21,003 | 0 | 29,961 | 0 |
Other | 66,241 | 53,285 | 182,104 | 154,600 |
Total noninterest income | 321,319 | 258,459 | 863,360 | 786,303 |
Noninterest expense: | ||||
Salaries, benefits and commissions | 295,092 | 292,679 | 884,111 | 868,971 |
Professional services | 72,903 | 68,403 | 210,583 | 197,625 |
Equipment | 63,908 | 63,739 | 191,940 | 190,759 |
Net occupancy | 42,241 | 42,514 | 123,298 | 125,607 |
Money transfer expense | 18,005 | 16,120 | 50,273 | 46,143 |
Securities impairment: | ||||
Other-than-temporary impairment | 0 | 418 | 221 | 989 |
Less: non-credit portion recognized in other comprehensive income | 0 | 135 | 108 | 397 |
Total securities impairment | 0 | 283 | 113 | 592 |
Other | 106,738 | 121,772 | 318,856 | 318,271 |
Total noninterest expense | 598,887 | 605,510 | 1,779,174 | 1,747,968 |
Net income before income tax expense | 222,844 | 216,271 | 590,126 | 719,452 |
Income tax expense | 39,899 | 41,756 | 106,014 | 151,849 |
Net income | 182,945 | 174,515 | 484,112 | 567,603 |
Less: net income attributable to noncontrolling interests | 514 | 426 | 1,669 | 1,482 |
Net income attributable to BBVA USA Bancshares, Inc. | 182,431 | 174,089 | 482,443 | 566,121 |
Less: preferred stock dividends | 4,561 | 4,576 | 13,771 | 12,699 |
Net income attributable to common shareholder | 177,870 | 169,513 | 468,672 | 553,422 |
Service charges on deposit accounts | ||||
Noninterest income: | ||||
Noninterest income | 65,143 | 60,325 | 185,782 | 175,067 |
Card and merchant processing fees | ||||
Noninterest income: | ||||
Noninterest income | 50,385 | 44,219 | 146,742 | 127,945 |
Investment services sales fees | ||||
Noninterest income: | ||||
Noninterest income | 29,287 | 28,286 | 87,316 | 88,176 |
Money transfer income | ||||
Noninterest income: | ||||
Noninterest income | 26,020 | 23,441 | 73,273 | 68,049 |
Investment banking and advisory fees | ||||
Noninterest income: | ||||
Noninterest income | 28,324 | 13,956 | 67,939 | 62,398 |
Asset management fees | ||||
Noninterest income: | ||||
Noninterest income | $ 11,405 | $ 11,143 | $ 34,039 | $ 32,902 |
Comprehensive Income - Changes in Components of OCI (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
|
Other Comprehensive Income (Loss), Pretax [Abstract] | ||||
Other comprehensive income (loss) | $ 68,815 | $ (22,904) | $ 377,877 | $ (147,715) |
Other Comprehensive Income (Loss), Tax Expense/(Benefit) [Abstract] | ||||
Other comprehensive income (loss) | 16,314 | (4,805) | 89,584 | (33,711) |
Other Comprehensive Income (Loss), After-Tax [Abstract] | ||||
Change in unamortized net holding losses on debt securities held to maturity | (2,223) | (1,989) | (5,905) | (6,522) |
Change in unamortized non-credit related impairment on debt securities held to maturity | (175) | (208) | (675) | (623) |
Change in defined benefit plans | 0 | 0 | (3,119) | 3,379 |
Other comprehensive income (loss), net of tax | 52,501 | (18,099) | 288,293 | (114,004) |
Unrealized Gains (Losses) on Debt Securities Available for Sale and Transferred to Held to Maturity | ||||
Other Comprehensive Income (Loss), After-Tax [Abstract] | ||||
Unrealized holding gains (losses) arising during period from debt securities available for sale | 169,868 | (136,807) | ||
Less: reclassification adjustment for net gains on sale of debt securities in net income | 16,952 | (6,522) | ||
Other comprehensive income (loss), net of tax | 152,916 | (130,285) | ||
Accumulated Gains (Losses) on Cash Flow Hedging Instruments | ||||
Other Comprehensive Income (Loss), Pretax [Abstract] | ||||
Other comprehensive income (loss) | 44,121 | 172,571 | ||
Other Comprehensive Income (Loss), Tax Expense/(Benefit) [Abstract] | ||||
Other comprehensive income (loss) | 10,459 | 40,906 | ||
Other Comprehensive Income (Loss), After-Tax [Abstract] | ||||
Unrealized holding gains (losses) arising during period from debt securities available for sale | 129,110 | |||
Less: reclassification adjustment for net gains on sale of debt securities in net income | (2,555) | |||
Other comprehensive income (loss), net of tax | 33,662 | 131,665 | ||
Accumulated Gains (Losses) on Cash Flow Hedging Instruments | ||||
Other Comprehensive Income (Loss), Pretax [Abstract] | ||||
Other comprehensive income (loss) | 15,187 | 26,894 | ||
Other Comprehensive Income (Loss), Tax Expense/(Benefit) [Abstract] | ||||
Other comprehensive income (loss) | 4,191 | 7,554 | ||
Other Comprehensive Income (Loss), After-Tax [Abstract] | ||||
Unrealized holding gains (losses) arising during period from debt securities available for sale | (8,838) | |||
Less: reclassification adjustment for net gains on sale of debt securities in net income | (28,178) | |||
Other comprehensive income (loss), net of tax | 10,996 | 19,340 | ||
Defined Benefit Plan Adjustment | ||||
Other Comprehensive Income (Loss), Pretax [Abstract] | ||||
Change in defined benefit plans | 0 | 0 | 4,089 | (4,425) |
Other Comprehensive Income (Loss), Tax Expense/(Benefit) [Abstract] | ||||
Change in defined benefit plans | 0 | 0 | 970 | (1,046) |
Other Comprehensive Income (Loss), After-Tax [Abstract] | ||||
Unrealized holding gains (losses) arising during period from debt securities available for sale | 0 | 0 | ||
Less: reclassification adjustment for net gains on sale of debt securities in net income | (3,119) | 3,379 | ||
Change in defined benefit plans | 0 | 0 | 3,119 | (3,379) |
Other comprehensive income (loss), net of tax | 3,119 | (3,379) | ||
Available-for-sale Securities | Unrealized Gains (Losses) on Debt Securities Available for Sale and Transferred to Held to Maturity | ||||
Other Comprehensive Income (Loss), Pretax [Abstract] | ||||
Unrealized holding gains (losses) arising during period from debt securities available for sale | 42,553 | (40,831) | 222,660 | (139,236) |
Less: reclassification adjustment for net gains on sale of debt securities in net income | 21,003 | 0 | 29,961 | 0 |
Other comprehensive income (loss) | 21,550 | (40,831) | 192,699 | (139,236) |
Other Comprehensive Income (Loss), Tax Expense/(Benefit) [Abstract] | ||||
Unrealized holding gains (losses) arising during period from debt securities available for sale | 10,089 | (9,642) | 52,792 | (32,916) |
Less: reclassification adjustment for net gains on sale of debt securities in net income | 4,980 | 0 | 7,104 | 0 |
Other comprehensive income (loss) | 5,109 | (9,642) | 45,688 | (32,916) |
Other Comprehensive Income (Loss), After-Tax [Abstract] | ||||
Unrealized holding gains (losses) arising during period from debt securities available for sale | 32,464 | (31,189) | 169,868 | (106,320) |
Less: reclassification adjustment for net gains on sale of debt securities in net income | 16,023 | 0 | 22,857 | 0 |
Other comprehensive income (loss), net of tax | 16,441 | (31,189) | 147,011 | (106,320) |
Held-to-maturity Securities | Change in unamortized net holding losses on debt securities held to maturity | ||||
Other Comprehensive Income (Loss), Pretax [Abstract] | ||||
Change in unamortized net holding losses on debt securities held to maturity | 2,915 | 2,604 | 7,741 | 8,538 |
Other Comprehensive Income (Loss), Tax Expense/(Benefit) [Abstract] | ||||
Change in unamortized net holding losses on debt securities held to maturity | 692 | 615 | 1,836 | 2,016 |
Other Comprehensive Income (Loss), After-Tax [Abstract] | ||||
Change in unamortized net holding losses on debt securities held to maturity | 2,223 | 1,989 | 5,905 | 6,522 |
Held-to-maturity Securities | Unrealized Gains (Losses) on Debt Securities Held to Maturity | ||||
Other Comprehensive Income (Loss), Pretax [Abstract] | ||||
Unrealized holding gains (losses) arising during period from debt securities available for sale | 0 | 0 | 0 | 39,904 |
Less: reclassification adjustment for net gains on sale of debt securities in net income | 0 | (135) | (108) | (397) |
Other comprehensive income (loss) | 3,144 | 2,740 | 8,518 | (30,948) |
Other Comprehensive Income (Loss), Tax Expense/(Benefit) [Abstract] | ||||
Unrealized holding gains (losses) arising during period from debt securities available for sale | 0 | 0 | 0 | 9,417 |
Less: reclassification adjustment for net gains on sale of debt securities in net income | 0 | (32) | (26) | (94) |
Other comprehensive income (loss) | 746 | 646 | 2,020 | (7,303) |
Other Comprehensive Income (Loss), After-Tax [Abstract] | ||||
Unrealized holding gains (losses) arising during period from debt securities available for sale | 0 | 0 | 0 | 30,487 |
Less: reclassification adjustment for net gains on sale of debt securities in net income | 0 | (103) | (82) | (303) |
Other comprehensive income (loss), net of tax | 2,398 | 2,094 | 6,498 | (23,645) |
Held-to-maturity Securities | Change in unamortized non-credit related impairment on debt securities held to maturity | ||||
Other Comprehensive Income (Loss), Pretax [Abstract] | ||||
Change in unamortized non-credit related impairment on debt securities held to maturity | 229 | 271 | 885 | 815 |
Other Comprehensive Income (Loss), Tax Expense/(Benefit) [Abstract] | ||||
Change in unamortized non-credit related impairment on debt securities held to maturity | 54 | 63 | 210 | 192 |
Other Comprehensive Income (Loss), After-Tax [Abstract] | ||||
Change in unamortized non-credit related impairment on debt securities held to maturity | $ 175 | $ 208 | $ 675 | $ 623 |
Commitments, Contingencies and Guarantees - Narrative (Details) $ in Thousands |
1 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Jun. 27, 2018
USD ($)
|
Mar. 31, 2018
lawsuit
|
Dec. 31, 2017
USD ($)
|
Sep. 30, 2019
USD ($)
|
Dec. 31, 2018
USD ($)
|
|
Loss Contingencies [Line Items] | |||||
Loss contingency accrual | $ 24,000 | ||||
Minimum | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, estimate of possible loss | 0 | ||||
Maximum | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, estimate of possible loss | 87,000 | ||||
Financial Standby Letter of Credit | |||||
Loss Contingencies [Line Items] | |||||
Letters of credit, deferred fees | 7,000 | ||||
Letters of credit, deferred fees | $ 8,000 | ||||
Maximum potential amount of future undiscounted payments Company could be required to make on outstanding standby letters of credit | $ 1,000,000 | ||||
Financial Standby Letter of Credit | Minimum | |||||
Loss Contingencies [Line Items] | |||||
Standby and commercial letters of credit expiration term | 1 year | ||||
Financial Standby Letter of Credit | Maximum | |||||
Loss Contingencies [Line Items] | |||||
Standby and commercial letters of credit expiration term | 4 years | ||||
Potential Recourse Related to FNMA Securitizations | Maximum | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, estimate of possible loss | $ 19,000 | 19,000 | |||
Accrued Expenses and Other Liabilities | Financial Standby Letter of Credit | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency accrual | 64,000 | 66,000 | |||
Accrued Expenses and Other Liabilities | Potential Recourse Related to FNMA Securitizations | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency accrual | 793 | 793 | |||
Accrued Expenses and Other Liabilities | Standard Representations and Warranties Related to Loan Sales to Government-Sponsored Agencies | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency accrual | $ 1,300 | $ 1,200 | |||
Settled Litigation | |||||
Loss Contingencies [Line Items] | |||||
Amount awarded to other party | $ 98,000 | ||||
Settlement awarded to other party | $ 96,000 | ||||
Pending Litigation | In re Mexican Government Bonds Antitrust Litigation | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, number of lawsuits | lawsuit | 5 |
Comprehensive Income - Reclassifications out of AOCI (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Investment securities gains, net | $ 21,003 | $ 0 | $ 29,961 | $ 0 | |||||
Interest on debt securities held to maturity | 38,893 | 16,110 | 101,701 | 41,598 | |||||
Interest and fees on loans | 771,245 | 751,470 | 2,359,500 | 2,126,411 | |||||
Interest on FHLB and other borrowings | (32,975) | (37,131) | (104,901) | (93,799) | |||||
Net income before income tax expense | 222,844 | 216,271 | 590,126 | 719,452 | |||||
Income tax (expense) benefit | (39,899) | (41,756) | (106,014) | (151,849) | |||||
Net income | 182,945 | 174,515 | 484,112 | 567,603 | |||||
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Unrealized Gains (Losses) on Debt Securities Available for Sale and Transferred to Held to Maturity | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Investment securities gains, net | [1] | 21,003 | 0 | 29,961 | 0 | ||||
Interest on debt securities held to maturity | [1] | (2,915) | (2,604) | (7,741) | (8,538) | ||||
Net income before income tax expense | [1] | 18,088 | (2,604) | 22,220 | (8,538) | ||||
Income tax (expense) benefit | [1] | (4,288) | 615 | (5,268) | 2,016 | ||||
Net income | [1] | 13,800 | (1,989) | 16,952 | (6,522) | ||||
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Accumulated Gains (Losses) on Cash Flow Hedging Instruments | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Interest and fees on loans | [1] | (295) | (13,782) | (2,765) | (35,839) | ||||
Interest on FHLB and other borrowings | [1] | (254) | (251) | (584) | (1,048) | ||||
Net income before income tax expense | [1] | (549) | (14,033) | (3,349) | (36,887) | ||||
Income tax (expense) benefit | [1] | 130 | 3,314 | 794 | 8,709 | ||||
Net income | [1] | (419) | (10,719) | (2,555) | (28,178) | ||||
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Defined Benefit Plan Adjustment | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net periodic expense | [1],[2] | 0 | 0 | (4,089) | 4,425 | ||||
Income tax (expense) benefit | [1] | 0 | 0 | 970 | (1,046) | ||||
Net income | [1] | 0 | 0 | (3,119) | 3,379 | ||||
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Unamortized Impairment Losses on Debt Securities Held to Maturity | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Interest on debt securities held to maturity | [1] | (229) | (271) | (885) | (815) | ||||
Income tax (expense) benefit | [1] | 54 | 63 | 210 | 192 | ||||
Net income | [1] | $ (175) | $ (208) | $ (675) | $ (623) | ||||
|
Related Party Transactions (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
Dec. 31, 2018 |
Mar. 16, 2017 |
Mar. 16, 2012 |
|
Related Party Transaction [Line Items] | |||||||
Securities purchased under agreements to resell | $ 129,780,000 | $ 129,780,000 | $ 109,947,000 | ||||
Securities sold under agreements to repurchase | 117,421,000 | 117,421,000 | 102,275,000 | ||||
Preferred stock | 229,475,000 | 229,475,000 | 229,475,000 | ||||
Preferred stock dividends | 4,561,000 | $ 4,576,000 | 14,808,000 | $ 13,735,000 | |||
Transfer of loans to loans held for sale | 1,196,883,000 | 0 | |||||
BBVA | |||||||
Related Party Transaction [Line Items] | |||||||
Securities purchased under agreements to resell | 77,280,000 | 77,280,000 | 109,947,000 | ||||
Securities sold under agreements to repurchase | 83,967,000 | 83,967,000 | 0 | ||||
BBVA | BBVA Compass Bancshares, Inc. | |||||||
Related Party Transaction [Line Items] | |||||||
Revenue from related parties | 10,200,000 | 8,600,000 | 21,800,000 | 33,900,000 | |||
Fees on agreements | 9,400,000 | 7,000,000 | 26,000,000 | 22,500,000 | |||
Derivatives designated as hedging instrument | BBVA | |||||||
Related Party Transaction [Line Items] | |||||||
Derivative, notional amount | 3,600,000,000 | 3,600,000,000 | 4,100,000,000 | ||||
Free-standing derivatives not designated as hedging instrument | Free-standing derivative instruments – risk management and other purposes | BBVA | |||||||
Related Party Transaction [Line Items] | |||||||
Related party transaction, amount of transaction | (3,968,000) | (3,968,000) | 23,378,000 | ||||
Preferred Stock | Series A Preferred Stock | BBVA | |||||||
Related Party Transaction [Line Items] | |||||||
Preferred stock | 229,000,000 | 229,000,000 | 229,000,000 | ||||
Preferred stock dividends | 13,800,000 | 12,700,000 | |||||
Cash flow hedges | Derivatives designated as hedging instrument | BBVA | |||||||
Related Party Transaction [Line Items] | |||||||
Related party transaction, amount of transaction | 51,000 | 51,000 | 174,000 | ||||
Fair value hedges | BBVA | |||||||
Related Party Transaction [Line Items] | |||||||
Related party transaction, amount of transaction | 17,447,000 | 17,447,000 | (24,839,000) | ||||
BSI | Revolving Credit Facility | Line of Credit | BBVA Compass Bancshares, Inc. | |||||||
Related Party Transaction [Line Items] | |||||||
Due from related parties | 0 | 0 | $ 0 | $ 450,000,000 | $ 420,000,000 | ||
BSI | Uncommitted Demand Facility | Revolving Credit Facility | Line of Credit | BBVA Compass Bancshares, Inc. | |||||||
Related Party Transaction [Line Items] | |||||||
Due from related parties | $ 1,000,000,000 | ||||||
BSI | Revolving Note and Cash Subordinated Agreement | BBVA Compass Bancshares, Inc. | |||||||
Related Party Transaction [Line Items] | |||||||
Interest expense | 24,000 | 0 | 50,000 | 232,000 | |||
Loans and Loans Held for Sale Excluding Loans Originated for Sale in Secondary Market | |||||||
Related Party Transaction [Line Items] | |||||||
Transfer of loans to loans held for sale | $ 0 | $ 0 | 1,196,883,000 | $ 0 | |||
Gain on sale of loans | $ 778,000 |
Fair Value Measurements - Assets measured on nonrecurring basis (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
Dec. 31, 2018 |
||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Debt securities held to maturity, estimated fair value | $ 6,514,496 | $ 6,514,496 | $ 2,925,420 | |||||
Investment securities held to maturity recorded as other than temporary impairment losses | 0 | $ (283) | (113) | $ (592) | ||||
Quoted Prices in Active Markets for Identical Assets, Level 1 | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Debt securities held to maturity, estimated fair value | 1,348,822 | 1,348,822 | ||||||
Significant Other Observable Inputs, Level 2 | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Debt securities held to maturity, estimated fair value | 4,421,416 | 4,421,416 | 2,106,510 | |||||
Fair Value, Inputs, Level 3 | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Debt securities held to maturity, estimated fair value | 744,258 | 744,258 | 818,910 | |||||
Fair Value, measurements, nonrecurring | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Debt securities held to maturity, estimated fair value | 1,036 | 3,955 | 1,036 | 3,955 | ||||
Investment securities held to maturity recorded as other than temporary impairment losses | 0 | (283) | (113) | (592) | ||||
Impaired loans, fair value | [1] | 6,270 | 11,875 | 6,270 | 11,875 | |||
Impaired loans, total gains (losses) | [1] | (69,615) | (17,225) | (113,140) | (28,666) | |||
OREO, fair value | 18,931 | 18,706 | 18,931 | 18,706 | ||||
OREO, total gains (losses) | (1,169) | (1,322) | (3,928) | (2,407) | ||||
Fair Value, measurements, nonrecurring | Fair Value, Inputs, Level 3 | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Debt securities held to maturity, estimated fair value | 3,955 | 3,955 | ||||||
Impaired loans, fair value | [1] | 6,270 | 11,875 | 6,270 | 11,875 | |||
OREO, fair value | 18,931 | $ 18,706 | 18,931 | $ 18,706 | ||||
Debt securities held to maturity | Fair Value, measurements, nonrecurring | Fair Value, Inputs, Level 3 | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Debt securities held to maturity, estimated fair value | $ 1,036 | $ 1,036 | $ 4,380 | |||||
|
Loan Sales and Servicing - Valuation Assumptions (Details) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2019 |
Dec. 31, 2018 |
|
Servicing Assets at Fair Value [Line Items] | ||
Fair value of MSRs | $ 37,265 | $ 51,539 |
Composition of residential loans serviced for others, percentage | 100.00% | 100.00% |
Weighted average life (in years) | 4 years 1 month 20 days | 6 years 7 months 14 days |
Prepayment speed: | 18.10% | 7.40% |
Effect on fair value of a 10% increase | $ (2,939) | $ (1,432) |
Effect on fair value of a 20% increase | $ (5,007) | $ (2,778) |
Weighted average option adjusted spread: | 6.40% | 6.50% |
Effect on fair value of a 10% increase | $ (1,055) | $ (1,627) |
Effect on fair value of a 20% increase | $ (1,568) | $ (3,116) |
Fixed rate mortgage loans | ||
Servicing Assets at Fair Value [Line Items] | ||
Composition of residential loans serviced for others, percentage | 98.00% | 97.70% |
Adjustable rate mortgage loans | ||
Servicing Assets at Fair Value [Line Items] | ||
Composition of residential loans serviced for others, percentage | 2.00% | 2.30% |
Loan Sales and Servicing - Loans Transferred to Held for Sale and Loans Sold (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans transferred from held for investment to held for sale | $ 1,196,883 | $ 0 | ||
Loans and Loans Held for Sale Excluding Loans Originated for Sale in Secondary Market | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans transferred from held for investment to held for sale | $ 0 | $ 0 | 1,196,883 | 0 |
Charge-offs on loans recognized at transfer from held for investment to held for sale | 0 | 0 | 0 | 0 |
Loans and loans held for sale sold | $ 10,897 | $ 37,580 | $ 1,092,195 | $ 46,055 |
Securities Financing Activities (Details) - USD ($) $ in Thousands |
Sep. 30, 2019 |
Dec. 31, 2018 |
|||
---|---|---|---|---|---|
Securities purchased under agreements to resell | |||||
Securities purchased under agreements to resell, subject to master netting arrangement, gross amounts recognized | $ 2,576,433 | $ 246,844 | |||
Securities purchased under agreements to resell, subject to a master netting arrangement, gross amounts offset in the condensed consolidated balance sheets | 2,446,653 | 136,897 | |||
Securities purchased under agreements to resell, subject to a master netting arrangement, net amount presented in the condensed consolidated balance sheets | 129,780 | 109,947 | |||
Securities purchased under agreements to resell, subject to a master netting arrangement, financial instruments collateral received/ pledged | [1] | 129,780 | 109,947 | ||
Securities purchased under agreements to resell, net amount | 0 | 0 | |||
Securities sold under agreements to repurchase | |||||
Securities sold under agreements to repurchase, subject to a master netting arrangement, gross amounts recognized | 2,564,074 | 239,172 | |||
Securities sold under agreements to repurchase, gross amounts offset in the condensed consolidated balance sheets | 2,446,653 | 136,897 | |||
Securities sold under agreements to repurchase, subject to a master netting arrangement, net amount presented in the condensed consolidated balance sheet | 117,421 | 102,275 | |||
Securities sold under agreements to repurchase, subject to a master netting arrangement, financial instruments collateral received/ pledged | [1] | 117,421 | 102,275 | ||
Securities sold under agreements to repurchase, subject to a master netting arrangement, net amount | 0 | 0 | |||
Fair value of collateral received related to securities purchased under agreements to resell | 2,700,000 | 251,000 | |||
Fair value of collateral pledged related to securities sold under agreements to repurchase | $ 2,600,000 | $ 247,000 | |||
|
Derivatives and Hedging - Free Standing Derivative Instruments (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
|
Futures contracts | Mortgage banking income and corporate and correspondent investment sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss), net | $ 14 | $ 195 | $ (1,365) | $ 400 |
Interest rate lock commitments | Mortgage banking income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss), net | 191 | (475) | 2,026 | (281) |
Option contracts related to mortgage servicing rights | Mortgage banking income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss), net | 285 | 0 | 1,313 | (38) |
Forward contracts related to residential mortgage loans held for sale | Mortgage banking income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss), net | 530 | 708 | 481 | 553 |
Interest rate contracts for customers | Corporate and correspondent investment sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss), net | 7,398 | 8,639 | 13,490 | 28,559 |
Purchased equity option related to equity-linked CDs | Other expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss), net | (2,187) | (4,945) | (7,196) | (20,550) |
Written equity option related to equity-linked CDs | Other expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss), net | 1,942 | 4,539 | 6,469 | 18,641 |
Forward and swap contracts related to commercial loans | Other income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss), net | 13,787 | 5,333 | 15,484 | 23,717 |
Spot contracts related to commercial loans | Other income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss), net | (1,263) | (2,649) | (1,065) | (3,768) |
Foreign currency exchange contracts for customers | Corporate and correspondent investment sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss), net | $ 4,085 | $ 3,514 | $ 11,547 | $ 11,811 |
Leases - Components of Lease Costs (Details) $ in Thousands |
3 Months Ended | 9 Months Ended |
---|---|---|
Sep. 30, 2019
USD ($)
|
Sep. 30, 2019
USD ($)
|
|
Leases [Abstract] | ||
Interest on lease liabilities | $ 150 | $ 463 |
Amortization of right-of-use assets | 331 | 992 |
Finance lease cost | 481 | 1,455 |
Operating lease cost | 12,949 | 38,753 |
Variable lease cost | 5,372 | 13,817 |
Sublease income | (2,137) | (5,689) |
Total lease cost | $ 16,665 | 48,336 |
Operating cash flows from operating leases | 40,751 | |
Operating cash flows from finance leases | 463 | |
Financing cash flows from finance leases | 1,181 | |
Operating leases | 29,901 | |
Finance leases | $ 0 | |
Finance lease, weighted-average remaining lease term | 8 years 7 months 20 days | 8 years 7 months 20 days |
Operating lease, weighted-average remaining lease term | 9 years 11 months 1 day | 9 years 11 months 1 day |
Lease, weighted-average remaining lease term | 9 years 10 months 15 days | |
Finance lease, weighted-average discount rate, percent | 4.70% | 4.70% |
Operating lease, weighted-average discount rate, percent | 3.30% | 3.30% |
Lease, weighted-average discount rate, percent | 3.40% | 3.40% |
Loans and Allowance for Loan Losses - Composition of loan portfolio (Details) - USD ($) $ in Thousands |
Sep. 30, 2019 |
Dec. 31, 2018 |
|||||||
---|---|---|---|---|---|---|---|---|---|
Loans and Leases Receivable Disclosure [Line Items] | |||||||||
Loans | $ 63,320,571 | $ 65,186,554 | |||||||
Commercial, Financial and Agricultural | |||||||||
Loans and Leases Receivable Disclosure [Line Items] | |||||||||
Loans | 24,683,130 | 26,562,319 | |||||||
Commercial Real Estate | |||||||||
Loans and Leases Receivable Disclosure [Line Items] | |||||||||
Loans | [1] | 15,079,520 | 15,014,333 | ||||||
Commercial Real Estate | Real estate – construction | |||||||||
Loans and Leases Receivable Disclosure [Line Items] | |||||||||
Loans | 2,005,347 | 1,997,537 | |||||||
Commercial Real Estate | Commercial real estate – mortgage | |||||||||
Loans and Leases Receivable Disclosure [Line Items] | |||||||||
Loans | 13,074,173 | 13,016,796 | |||||||
Residential Real Estate | |||||||||
Loans and Leases Receivable Disclosure [Line Items] | |||||||||
Loans | [2] | 16,384,883 | 16,467,987 | ||||||
Residential Real Estate | Residential real estate – mortgage | |||||||||
Loans and Leases Receivable Disclosure [Line Items] | |||||||||
Loans | 13,503,327 | 13,422,156 | |||||||
Residential Real Estate | Equity lines of credit | |||||||||
Loans and Leases Receivable Disclosure [Line Items] | |||||||||
Loans | 2,618,112 | 2,747,217 | |||||||
Residential Real Estate | Equity loans | |||||||||
Loans and Leases Receivable Disclosure [Line Items] | |||||||||
Loans | 263,444 | 298,614 | |||||||
Consumer | |||||||||
Loans and Leases Receivable Disclosure [Line Items] | |||||||||
Loans | [3] | 7,173,038 | 7,141,915 | ||||||
Consumer | Credit card | |||||||||
Loans and Leases Receivable Disclosure [Line Items] | |||||||||
Loans | 936,147 | 818,308 | |||||||
Consumer | Consumer direct | |||||||||
Loans and Leases Receivable Disclosure [Line Items] | |||||||||
Loans | 2,388,358 | 2,553,588 | |||||||
Consumer | Consumer indirect | |||||||||
Loans and Leases Receivable Disclosure [Line Items] | |||||||||
Loans | 3,848,533 | 3,770,019 | |||||||
Commercial | |||||||||
Loans and Leases Receivable Disclosure [Line Items] | |||||||||
Loans | 39,762,650 | 41,576,652 | |||||||
Commercial | Commercial, Financial and Agricultural | |||||||||
Loans and Leases Receivable Disclosure [Line Items] | |||||||||
Loans | 24,683,130 | 26,562,319 | |||||||
Commercial | Commercial Real Estate | Real estate – construction | |||||||||
Loans and Leases Receivable Disclosure [Line Items] | |||||||||
Loans | 2,005,347 | 1,997,537 | |||||||
Commercial | Commercial Real Estate | Commercial real estate – mortgage | |||||||||
Loans and Leases Receivable Disclosure [Line Items] | |||||||||
Loans | 13,074,173 | 13,016,796 | |||||||
Consumer | |||||||||
Loans and Leases Receivable Disclosure [Line Items] | |||||||||
Loans | 23,557,921 | 23,609,902 | |||||||
Consumer | Residential Real Estate | Residential real estate – mortgage | |||||||||
Loans and Leases Receivable Disclosure [Line Items] | |||||||||
Loans | 13,503,327 | 13,422,156 | |||||||
Consumer | Residential Real Estate | Equity lines of credit | |||||||||
Loans and Leases Receivable Disclosure [Line Items] | |||||||||
Loans | 2,618,112 | 2,747,217 | |||||||
Consumer | Residential Real Estate | Equity loans | |||||||||
Loans and Leases Receivable Disclosure [Line Items] | |||||||||
Loans | 263,444 | 298,614 | |||||||
Consumer | Consumer | Credit card | |||||||||
Loans and Leases Receivable Disclosure [Line Items] | |||||||||
Loans | 936,147 | 818,308 | |||||||
Consumer | Consumer | Consumer direct | |||||||||
Loans and Leases Receivable Disclosure [Line Items] | |||||||||
Loans | 2,388,358 | 2,553,588 | |||||||
Consumer | Consumer | Consumer indirect | |||||||||
Loans and Leases Receivable Disclosure [Line Items] | |||||||||
Loans | $ 3,848,533 | $ 3,770,019 | |||||||
|
Loans and Allowance for Loan Losses - Credit quality indicators (Details) - USD ($) $ in Thousands |
Sep. 30, 2019 |
Dec. 31, 2018 |
|||||||
---|---|---|---|---|---|---|---|---|---|
Financing Receivable, Credit Quality Indicator [Line Items] | |||||||||
Loans | $ 63,320,571 | $ 65,186,554 | |||||||
Commercial, Financial and Agricultural | |||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||||||
Loans | 24,683,130 | 26,562,319 | |||||||
Commercial Real Estate | |||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||||||
Loans | [1] | 15,079,520 | 15,014,333 | ||||||
Commercial Real Estate | Real estate – construction | |||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||||||
Loans | 2,005,347 | 1,997,537 | |||||||
Commercial Real Estate | Commercial real estate – mortgage | |||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||||||
Loans | 13,074,173 | 13,016,796 | |||||||
Residential Real Estate | |||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||||||
Loans | [2] | 16,384,883 | 16,467,987 | ||||||
Residential Real Estate | Residential real estate – mortgage | |||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||||||
Loans | 13,503,327 | 13,422,156 | |||||||
Residential Real Estate | Equity lines of credit | |||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||||||
Loans | 2,618,112 | 2,747,217 | |||||||
Residential Real Estate | Equity loans | |||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||||||
Loans | 263,444 | 298,614 | |||||||
Consumer | |||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||||||
Loans | [3] | 7,173,038 | 7,141,915 | ||||||
Consumer | Credit card | |||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||||||
Loans | 936,147 | 818,308 | |||||||
Consumer | Consumer direct | |||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||||||
Loans | 2,388,358 | 2,553,588 | |||||||
Consumer | Consumer indirect | |||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||||||
Loans | 3,848,533 | 3,770,019 | |||||||
Commercial | |||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||||||
Loans | 39,762,650 | 41,576,652 | |||||||
Commercial | Commercial, Financial and Agricultural | |||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||||||
Loans | 24,683,130 | 26,562,319 | |||||||
Commercial | Commercial, Financial and Agricultural | Pass | |||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||||||
Loans | 23,417,187 | 25,395,640 | |||||||
Commercial | Commercial, Financial and Agricultural | Special Mention | |||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||||||
Loans | 661,147 | 412,129 | |||||||
Commercial | Commercial, Financial and Agricultural | Substandard | |||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||||||
Loans | 502,442 | 631,706 | |||||||
Commercial | Commercial, Financial and Agricultural | Doubtful | |||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||||||
Loans | 102,354 | 122,844 | |||||||
Commercial | Commercial Real Estate | Real estate – construction | |||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||||||
Loans | 2,005,347 | 1,997,537 | |||||||
Commercial | Commercial Real Estate | Commercial real estate – mortgage | |||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||||||
Loans | 13,074,173 | 13,016,796 | |||||||
Commercial | Commercial Real Estate | Pass | Real estate – construction | |||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||||||
Loans | 1,921,410 | 1,971,852 | |||||||
Commercial | Commercial Real Estate | Pass | Commercial real estate – mortgage | |||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||||||
Loans | 12,718,589 | 12,620,421 | |||||||
Commercial | Commercial Real Estate | Special Mention | Real estate – construction | |||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||||||
Loans | 10,430 | 12,372 | |||||||
Commercial | Commercial Real Estate | Special Mention | Commercial real estate – mortgage | |||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||||||
Loans | 170,527 | 215,322 | |||||||
Commercial | Commercial Real Estate | Substandard | Real estate – construction | |||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||||||
Loans | 73,507 | 13,313 | |||||||
Commercial | Commercial Real Estate | Substandard | Commercial real estate – mortgage | |||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||||||
Loans | 171,154 | 170,303 | |||||||
Commercial | Commercial Real Estate | Doubtful | Real estate – construction | |||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||||||
Loans | 0 | 0 | |||||||
Commercial | Commercial Real Estate | Doubtful | Commercial real estate – mortgage | |||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||||||
Loans | 13,903 | 10,750 | |||||||
Consumer | |||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||||||
Loans | 23,557,921 | 23,609,902 | |||||||
Consumer | Residential Real Estate | Residential real estate – mortgage | |||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||||||
Loans | 13,503,327 | 13,422,156 | |||||||
Consumer | Residential Real Estate | Equity lines of credit | |||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||||||
Loans | 2,618,112 | 2,747,217 | |||||||
Consumer | Residential Real Estate | Equity loans | |||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||||||
Loans | 263,444 | 298,614 | |||||||
Consumer | Residential Real Estate | Performing | Residential real estate – mortgage | |||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||||||
Loans | 13,345,060 | 13,248,822 | |||||||
Consumer | Residential Real Estate | Performing | Equity lines of credit | |||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||||||
Loans | 2,579,161 | 2,707,289 | |||||||
Consumer | Residential Real Estate | Performing | Equity loans | |||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||||||
Loans | 254,015 | 287,392 | |||||||
Consumer | Residential Real Estate | Nonperforming | Residential real estate – mortgage | |||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||||||
Loans | 158,267 | 173,334 | |||||||
Consumer | Residential Real Estate | Nonperforming | Equity lines of credit | |||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||||||
Loans | 38,951 | 39,928 | |||||||
Consumer | Residential Real Estate | Nonperforming | Equity loans | |||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||||||
Loans | 9,429 | 11,222 | |||||||
Consumer | Consumer | Credit card | |||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||||||
Loans | 936,147 | 818,308 | |||||||
Consumer | Consumer | Consumer direct | |||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||||||
Loans | 2,388,358 | 2,553,588 | |||||||
Consumer | Consumer | Consumer indirect | |||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||||||
Loans | 3,848,533 | 3,770,019 | |||||||
Consumer | Consumer | Performing | Credit card | |||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||||||
Loans | 916,110 | 801,297 | |||||||
Consumer | Consumer | Performing | Consumer direct | |||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||||||
Loans | 2,363,237 | 2,535,724 | |||||||
Consumer | Consumer | Performing | Consumer indirect | |||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||||||
Loans | 3,805,994 | 3,742,394 | |||||||
Consumer | Consumer | Nonperforming | Credit card | |||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||||||
Loans | 20,037 | 17,011 | |||||||
Consumer | Consumer | Nonperforming | Consumer direct | |||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||||||
Loans | 25,121 | 17,864 | |||||||
Consumer | Consumer | Nonperforming | Consumer indirect | |||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||||||
Loans | $ 42,539 | $ 27,625 | |||||||
|
Derivatives and Hedging (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of notional amount and fair value of derivative instruments | The following table reflects the notional amount and fair value of derivative instruments included on the Company’s Unaudited Condensed Consolidated Balance Sheets on a gross basis.
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Schedule of hedging derivative instruments | The following table presents the effect of hedging derivative instruments on the Company’s Unaudited Condensed Consolidated Statements of Income.
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Schedule of fair value hedging instruments | The following table presents the carrying amount and associated cumulative basis adjustment related to the application of hedge accounting that is included in the carrying amount of hedged assets and liabilities on the Company's Unaudited Condensed Consolidated Balance Sheets in fair value hedging relationships.
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Schedule of other derivatives not designated as hedging instruments | The net gains and losses recorded in the Company's Unaudited Condensed Consolidated Statements of Income from free-standing derivative instruments not designated as hedging instruments are summarized in the following table.
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Schedule of assets subject to enforceable master netting arrangements | The following table represents the Company’s total gross derivative instrument assets and liabilities subject to an enforceable master netting arrangement. The derivative instruments the Company has with its customers are not subject to an enforceable master netting arrangement.
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Schedule of liabilities subject to enforceable master netting arrangements | The following table represents the Company’s total gross derivative instrument assets and liabilities subject to an enforceable master netting arrangement. The derivative instruments the Company has with its customers are not subject to an enforceable master netting arrangement.
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Basis of Presentation (Policies) |
9 Months Ended |
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Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Use of Estimates in the Preparation of Consolidated Financial Statements | Use of Estimates in the Preparation of Consolidated Financial Statements The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period, the most significant of which relate to the allowance for loan losses, goodwill impairment, fair value measurements and income taxes. Actual results could differ from those estimates. |
Recently Issued Accounting Standards | Recently Adopted Accounting Standards Leases In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) which supersedes ASC Topic 840, Leases. Subsequently, the FASB issued ASU 2018-01 in January 2018 which provides a practical expedient for land easements and issued ASU 2018-11 in July 2018 which includes an option to recognize a cumulative effect adjustment to retained earnings in the period of adoption instead of applying the guidance to prior comparative periods. This ASU, as amended, requires lessees to recognize right-of-use assets and associated liabilities that arise from leases, with the exception of short-term leases. Subsequent accounting for leases varies depending on whether the lease is classified as an operating lease or a finance lease. This ASU, as amended, does not make significant changes to lessor accounting. There are several new qualitative and quantitative disclosures required. Upon transition, lessees and lessors have the option to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective transition approach or to apply the modified retrospective approach with an additional, optional transition method that initially applies this ASU as of the adoption date and recognizes a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. The Company adopted this ASU, as amended, on January 1, 2019 using the optional transition method, which allowed for a modified retrospective method of adoption with a cumulative effect adjustment to retained earnings without restating comparable periods. The Company also elected the transition relief package of practical expedients for which there is no requirement to reassess existence of leases, their classification, and initial direct costs as well as an exemption for short term leases with a term of less than one year. The Company did not elect the practical expedient to use hindsight in determining the lease term and in assessing impairment of right-of-use assets. At January 1, 2019, the Company recognized right-of-use assets of $290 million and lease liabilities of $332 million. The right-of-use assets and corresponding lease liabilities, recorded upon adoption, were primarily based on the present value of unpaid future minimum lease payments as of January 1, 2019. Those amounts were impacted by assumptions related to renewals and/or extensions of existing lease contracts and the interest rate used to discount those future lease obligations. Additionally, the Company recognized a cumulative effect adjustment of approximately $3.5 million at adoption to increase the beginning balance of retained earnings as of January 1, 2019 for the remaining deferred gains on sale-leaseback transactions which occurred prior to adoption. This ASU will not have a material impact on the timing of expense recognition on the Company's results of operations. See Note 7, Leases, for the required disclosures in accordance with this ASU. Premium Amortization on Purchased Callable Debt Securities In March 2017, the FASB issued ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities. The amendments in this ASU reduce the amortization period for certain callable debt securities carried at a premium and require the premium to be amortized over a period not to exceed the earliest call date. These amendments do not apply to securities carried at a discount. The Company adopted this ASU on January 1, 2019. The adoption of this standard had no impact on the financial condition or results of operations of the Company. Derivatives and Hedging In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities. The amendments in this ASU better align an entity's risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. In October 2018, the FASB issued ASU 2018-16, Inclusion of the SOFR OIS Rate as a Benchmark Interest Rate for Hedge Accounting Purposes. The amendments in this ASU permit the OIS rate based on SOFR as a US benchmark interest rate for hedge accounting purposes under Topic 815. The Company adopted these ASUs on January 1, 2019. The adoption of these standards did not have a material impact on the financial condition or results of operations of the Company. The adoption resulted in an immaterial cumulative effect adjustment to the opening balance of retained earnings. For additional information on the Company’s derivative and hedging activities, see Note 5, Derivatives and Hedging. Comprehensive Income In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendments in this ASU allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. The Company adopted this ASU on January 1, 2019 and reclassified approximately $35.4 million from accumulated other comprehensive income to retained earnings. Recently Issued Accounting Standards Not Yet Adopted Credit Losses In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses, which introduces new guidance for the accounting for credit losses on instruments within its scope. The new approach changes the impairment model for most financial assets, and will require the use of an “expected credit loss” model for financial instruments measured at amortized cost and certain other instruments. This model applies to receivables, loans, debt securities, and off-balance sheet credit exposures. This model requires entities to estimate the lifetime expected credit loss on such instruments and record an allowance that represents the portion of the amortized cost basis that the entity does not expect to collect. This allowance is deducted from the financial asset’s amortized cost basis to present the net amount expected to be collected. The new expected credit loss model will also apply to purchased financial assets with credit deterioration, superseding current accounting guidance for such assets. The amended guidance also amends the impairment model for available-for-sale debt securities, requiring entities to determine whether all or a portion of the unrealized loss on such securities is a credit loss, and also eliminating the option for management to consider the length of time a security has been in an unrealized loss position as a factor in concluding whether or not a credit loss exists. The amended model states that an entity will recognize an allowance for credit losses on available-for-sale debt securities as a contra account to the amortized cost basis, instead of a direct reduction of the amortized cost basis of the investment, as under current guidance. As a result, entities will recognize improvements to estimated credit losses on available-for-sale debt securities immediately in earnings as opposed to in interest income over time. There are also additional disclosure requirements included in this guidance. The amendments in this ASU are effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2019. Early application of this ASU is permitted. The Company intends to adopt this standard on January 1, 2020. Adoption will be applied on a modified retrospective basis with the cumulative effect of initially applying the amendments recognized in retained earnings at the date of initial application. However, certain provisions of the guidance are only required to be applied on a prospective basis. The Company’s implementation process includes data sourcing and validation, loss model development, development of governance processes, development of a qualitative framework, documentation and governance surrounding economic forecast for credit loss purposes, evaluation of technical accounting topics, updates to allowance policies and methodology documentation, development of reporting processes and related internal controls, and overall operational readiness for adoption of the amended guidance, which will continue throughout 2019, including parallel runs alongside the Company’s current allowance process. Parallel runs that have been more focused on the operational process have been performed in the second and third quarters of 2019. Parallel runs will be enhanced throughout the remainder of 2019 to include the qualitative framework, supporting analytics, end-to-end governance, internal controls and disclosures. The Company provides updates to senior management and the Audit Committee. These communications provide an update on the status of the implementation project plan and any identified risks. The Company is currently in the process of evaluating the impact of the amended guidance on its Condensed Consolidated Financial Statements. It currently expects the allowance for loan losses to increase upon adoption given that the allowance will be required to cover the expected life of the loan portfolio upon adoption. The extent of this impact is still being evaluated and will depend on economic conditions, economic forecasts and the composition and credit quality of the Company's loan portfolio at the time of adoption. The amended guidance in this ASU eliminates the current accounting model for purchased-credit-impaired loans, but requires an allowance to be recognized for purchased-credit-deteriorated assets (those that have experienced more-than-insignificant deterioration in credit quality since origination). The Company will have no impact from purchased-credit-deteriorated assets upon adoption. Upon adoption, the Company does not expect to record a material allowance with respect to HTM and AFS securities as the portfolios consist primarily of agency-backed securities that inherently have minimal nonpayment risk. In November 2018, the FASB issued ASU 2018-19 and in April and May 2019, the FASB issued ASU 2019-04 and ASU 2019-05, respectively, which made minor clarifications to the guidance in ASU 2016-13. The FASB has also established a Transition Resource Group for Credit Losses to evaluate implementation issues arising from the amended guidance and make recommendations to the FASB on which issues may warrant the issuance of additional clarifying guidance. The Company continues to monitor the issues discussed by the Transition Resource Group and the recommended amendments proposed to the FASB as part of its implementation analysis. Goodwill In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which simplifies the manner in which an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Under the amendments in this ASU, an entity should (1) perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, and (2) recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, with the understanding that the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, ASU No. 2017-04 removes the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails such qualitative test, to perform Step 2 of the goodwill impairment test. This ASU is effective for fiscal years beginning after December 15, 2019, and for interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The ASU should be applied using a prospective method. Based on the Company’s most recent qualitative goodwill impairment assessment performed as of October 31, 2018, there were no reporting units for which it was more-likely-than-not that the carrying amount of a reporting unit exceeded its respective fair value; therefore, this ASU would not currently have an impact on the Company’s Consolidated Financial Statements or related disclosures. However, if upon adoption, which is expected to occur on January 1, 2020, the carrying amount of a reporting unit exceeds its respective fair value, the Company would be required to recognize an impairment charge for the amount that the carrying value exceeds the fair value. Fair Value Measurements In August 2018, the FASB issued ASU 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurements. The amendments in this ASU modify the disclosure requirements for fair value measurements in Topic 820, Fair Value Measurements. This ASU is effective for fiscal years beginning after December 15, 2019, and for interim periods within those fiscal years. Early adoption is permitted. The Company is currently assessing the impact that the adoption of this standard will have on its fair value disclosures. Internal-Use Software In August 2018, the FASB issued ASU 2018-15, Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. The amendments in this ASU align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software and hosting arrangements that include an internal-use software license. This ASU is effective for fiscal years beginning after December 15, 2019, and for interim periods within those fiscal years. Early adoption is permitted. The Company is currently assessing the impact that the adoption of this standard will have on the financial condition and results of operations of the Company. |
Derivatives and Hedging | The Company has made an accounting policy decision not to offset derivative fair value amounts under master netting agreements. |
Securities purchased under agreements to resell and securities sold under agreements to repurchase | Securities purchased under agreements to resell and securities sold under agreements to repurchase are governed by a MRA. Under the terms of the MRA, all transactions between the Company and the counterparty constitute a single business relationship such that in the event of default, the nondefaulting party is entitled to set off claims and apply property held by that party in respect of any transaction against obligations owed. Any payments, deliveries, or other transfers may be applied against each other and netted. These amounts are limited to the contract asset/liability balance, and accordingly, do not include excess collateral received or pledged. The Company offsets the assets and liabilities under netting arrangements for the balance sheet presentation of securities purchased under agreements to resell and securities sold under agreements to repurchase provided certain criteria are met that permit balance sheet netting. |
Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements See Note 19, Fair Value Measurements, in the Notes to the December 31, 2018, Consolidated Financial Statements for a description of valuation methodologies for assets and liabilities measured at fair value on a recurring and non-recurring basis. The following tables summarize the financial assets and liabilities measured at fair value on a recurring basis.
There were no transfers between Levels 1 or 2 of the fair value hierarchy for the three and nine months ended September 30, 2019 and 2018. It is the Company’s policy to value any transfers between levels of the fair value hierarchy based on end of period fair values. The following tables reconcile the assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3).
Assets Measured at Fair Value on a Nonrecurring Basis Periodically, certain assets may be recorded at fair value on a non-recurring basis. These adjustments to fair value usually result from the application of lower of cost or fair value accounting or write-downs of individual assets due to impairment. The following tables represent those assets that were subject to fair value adjustments during the three and nine months ended September 30, 2019 and 2018, and still held as of the end of the period, and the related gains and losses from fair value adjustments on assets sold during the period as well as assets still held as of the end of the period.
The following is a description of the methodologies applied for valuing these assets: Debt securities held to maturity – Nonrecurring fair value adjustments on debt securities held to maturity reflect impairment write-downs which the Company believes are other than temporary. For analyzing these securities, the Company has retained a third-party valuation firm. Impairment is determined through the use of cash flow models that estimate cash flows on the underlying mortgages using security-specific collateral and the transaction structure. The cash flow models incorporate the remaining cash flows which are adjusted for future expected credit losses. Future expected credit losses are determined by using various assumptions such as current default rates, prepayment rates, and loss severities. The Company develops these assumptions through the use of market data published by third-party sources in addition to historical analysis which includes actual delinquency and default information through the current period. The expected cash flows are then discounted at the interest rate used to recognize interest income on the security to arrive at a present value amount. As the fair value assessments are derived using a discounted cash flow modeling approach and include at least one significant unobservable input, the nonrecurring fair value adjustments are classified as Level 3. Impaired Loans – Impaired loans measured at fair value on a non-recurring basis represent the carrying value of impaired loans for which adjustments are based on the appraised value of the collateral. Nonrecurring fair value adjustments to impaired loans reflect full or partial write-downs that are generally based on the fair value of the underlying collateral supporting the loan. Loans subjected to nonrecurring fair value adjustments based on the current estimated fair value of the collateral are classified as Level 3. OREO – OREO is recorded at the lower of recorded balance or fair value, which is based on appraisals and third-party price opinions, less estimated costs to sell. The fair value is classified as Level 3. The tables below present information about the significant unobservable inputs for material assets and liabilities measured at fair value using significant unobservable inputs (Level 3) on a recurring and nonrecurring basis.
The following provides a description of the sensitivity of the valuation technique to changes in unobservable inputs for recurring fair value measurements. Recurring Fair Value Measurements Using Significant Unobservable Inputs Interest Rate Contracts - Interest Rate Lock Commitments Significant unobservable inputs used in the valuation of interest rate contracts are pull-through and cap grids. Increases or decreases in the pull-through or cap grids will have a corresponding impact in the value of interest rate contracts. Other Assets - MSRs The significant unobservable inputs used in the fair value measurement of MSRs are option-adjusted spreads, constant prepayment rate or life speed, and cost to service assumptions. The impact of prepayments and changes in the option-adjusted spread are based on a variety of underlying inputs. Increases or decreases to the underlying cash flow inputs will have a corresponding impact on the value of the MSR asset. The impact of the costs to service assumption will have a directionally opposite change in the fair value of the MSR asset. Other Assets - SBIC Investments The significant unobservable inputs used in the fair value measurement of SBIC Investments are initially based upon transaction price. Increases or decreases in valuation factors such as recent or proposed purchase or sale of debt or equity of the issuer, pricing by other dealers in similar securities, size of position held, liquidity of the market will have a corresponding impact in the value of SBIC investments. Fair Value of Financial Instruments The carrying amounts and estimated fair values, as well as the level within the fair value hierarchy, of the Company’s financial instruments, excluding financial instruments measured at fair value on a recurring basis, are as follows:
Fair Value Option The Company has elected to apply the fair value option for single family real estate mortgage loans originated for resale in the secondary market. The election allows for a more effective offset of the changes in fair values of the loans and the derivative instruments used to economically hedge them without the burden of complying with the requirements for hedge accounting. The Company has not elected the fair value option for other loans held for sale primarily because they are not economically hedged using derivative instruments. At both September 30, 2019 and December 31, 2018, no loans held for sale for which the fair value option was elected were 90 days or more past due or were in nonaccrual. Interest income on mortgage loans held for sale is recognized based on contractual rates and is reflected in interest and fees on loans in the Company's Unaudited Condensed Consolidated Statements of Income. Net gains (losses) of $887 thousand and $(47) thousand resulting from changes in fair value of these loans were recorded in noninterest income during the three months ended September 30, 2019 and 2018, respectively. Net gains (losses) of $1.6 million and $(420) thousand resulting from changes in fair value of these loans were recorded in noninterest income during the nine months ended September 30, 2019 and 2018, respectively. The Company also had fair value changes on forward contracts related to residential mortgage loans held for sale of approximately $530 thousand and $708 thousand for the three months ended September 30, 2019 and 2018, respectively, and $481 thousand and $553 thousand for the nine months ended September 30, 2019 and 2018, respectively. An immaterial portion of these amounts was attributable to changes in instrument-specific credit risk. The following table summarizes the difference between the aggregate fair value and the aggregate unpaid principal balance for residential mortgage loans measured at fair value.
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives and Hedging | Derivatives and Hedging The Company is a party to derivative instruments in the normal course of business to meet the financing needs of its customers and to reduce its own exposure to fluctuations in interest rates and foreign currency exchange rates. The Company has made an accounting policy decision not to offset derivative fair value amounts under master netting agreements. See Summary of Significant Accounting Policies in the Notes to Consolidated Financial Statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2018, for additional information on the Company's accounting policies related to derivative instruments and hedging activities. For derivatives cleared through central clearing houses the variation margin payments made are legally characterized as settlements of the derivatives. As a result, these variation margin payments are netted against the fair value of the respective derivative contracts in the balance sheet and related disclosures and there is no fair value presented for these contracts. The following table reflects the notional amount and fair value of derivative instruments included on the Company’s Unaudited Condensed Consolidated Balance Sheets on a gross basis.
Hedging Derivatives The Company uses derivative instruments to manage the risk of earnings fluctuations caused by interest rate volatility. For those financial instruments that qualify and are designated as a hedging relationship, either a fair value hedge or cash flow hedge, the effect of interest rate movements on the hedged assets or liabilities will generally be offset by change in fair value of the derivative instrument. Fair Value Hedges The Company enters into fair value hedging relationships using interest rate swaps to mitigate the Company’s exposure to losses in value as interest rates change. Derivative instruments that are used as part of the Company’s interest rate risk management strategy include interest rate swaps that relate to the pricing of specific balance sheet assets and liabilities. Interest rate swaps are used to convert the Company’s fixed rate long-term debt to a variable rate. The critical terms of the interest rate swaps match the terms of the corresponding hedged items. All components of each derivative instrument’s gain or loss are included in the assessment of hedge effectiveness. The Company recognized no gains or losses for the three and nine months ended September 30, 2019 and 2018, related to hedged firm commitments no longer qualifying as a fair value hedge. At September 30, 2019, the fair value hedges had a weighted average expected remaining term of 3.6 years. Cash Flow Hedges The Company enters into cash flow hedging relationships using interest rate swaps and options, such as caps and floors, to mitigate exposure to the variability in future cash flows or other forecasted transactions associated with its floating rate assets and liabilities. The Company uses interest rate swaps and options to hedge the repricing characteristics of its floating rate commercial loans and FHLB advances. The Company also uses foreign currency forward contracts to hedge its exposure to fluctuations in foreign currency exchange rates due to a portion of money transfer expense being denominated in foreign currency. All components of each derivative instrument’s gain or loss are included in the assessment of hedge effectiveness. The initial assessment of expected hedge effectiveness is based on regression analysis. The ongoing periodic measures of hedge ineffectiveness are based on the expected change in cash flows of the hedged item caused by changes in the benchmark interest rate. There were no gains or losses reclassified from other comprehensive income because of the discontinuance of cash flow hedges related to certain forecasted transactions that are probable of not occurring for the three and nine months ended September 30, 2019 and 2018. At September 30, 2019, cash flow hedges not terminated had a net fair value of $(3) million and a weighted average life of 3.6 years. Net losses of $1.3 million are expected to be reclassified to income over the next 12 months as net settlements occur. The maximum length of time over which the entity is hedging its exposure to the variability in future cash flows for forecasted transactions is 4.3 years. The following table presents the effect of hedging derivative instruments on the Company’s Unaudited Condensed Consolidated Statements of Income.
The following table presents the carrying amount and associated cumulative basis adjustment related to the application of hedge accounting that is included in the carrying amount of hedged assets and liabilities on the Company's Unaudited Condensed Consolidated Balance Sheets in fair value hedging relationships.
Derivatives Not Designated As Hedges Derivatives not designated as hedges include those that are entered into as either economic hedges to facilitate client needs or as part of the Company’s overall risk management strategy. Economic hedges are those that do not qualify to be treated as a fair value hedge, cash flow hedge or foreign currency hedge for accounting purposes, but are necessary to economically manage the risk exposure associated with the assets and liabilities of the Company. The Company holds a portfolio of futures, forwards and interest rate lock commitments as well as options related to its equity-linked CDs to mitigate its economic risk exposure. The Company also enters into a variety of interest rate contracts and foreign exchange contracts in its trading activities. See Note 13, Derivatives and Hedging, in the Notes to the December 31, 2018, Consolidated Financial Statements for a description of the Company's derivatives not designated as hedges. The net gains and losses recorded in the Company's Unaudited Condensed Consolidated Statements of Income from free-standing derivative instruments not designated as hedging instruments are summarized in the following table.
Derivatives Credit and Market Risks By using derivative instruments, the Company is exposed to credit and market risk. If the counterparty fails to perform, credit risk is equal to the extent of the Company’s fair value gain in a derivative. When the fair value of a derivative instrument contract is positive, this generally indicates that the counterparty owes the Company and, therefore, creates a credit risk for the Company. When the fair value of a derivative instrument contract is negative, the Company owes the counterparty and, therefore, it has no credit risk. The Company minimizes the credit risk in derivative instruments by entering into transactions with high-quality counterparties that are reviewed periodically. Credit losses are also mitigated through collateral agreements and other contract provisions with derivative counterparties. Market risk is the adverse effect that a change in interest rates or implied volatility rates has on the value of a financial instrument. The Company manages the market risk associated with interest rate contracts by establishing and monitoring limits as to the types and degree of risk that may be undertaken. The Company’s derivatives activities are monitored by its Asset/Liability Committee as part of its risk-management oversight. The Company’s Asset/Liability Committee is responsible for mandating various hedging strategies that are developed through its analysis of data from financial simulation models and other internal and industry sources. The resulting hedging strategies are then incorporated into the Company’s overall interest rate risk management and trading strategies. Entering into interest rate swap agreements and options involves not only the risk of dealing with counterparties and their ability to meet the terms of the contracts but also interest rate risk associated with unmatched positions. At September 30, 2019, interest rate swap agreements and options classified as trading were substantially matched. The Company had credit risk of $445 million related to derivative instruments in the trading account portfolio, which does not take into consideration master netting arrangements or the value of the collateral. There were no credit losses associated with derivative instruments classified as trading for the three and nine months ended September 30, 2019 and 2018. At September 30, 2019 and December 31, 2018, there were no material nonperforming derivative positions classified as trading. The Company’s derivative positions designated as hedging instruments are primarily executed in the over-the-counter market. These positions at September 30, 2019, have credit risk of $30 million, which does not take into consideration master netting arrangements or the value of the collateral. There were no credit losses associated with derivative instruments classified as nontrading for the three and nine months ended September 30, 2019 and 2018. At September 30, 2019 and December 31, 2018, there were no nonperforming derivative positions classified as nontrading. As of September 30, 2019 and December 31, 2018, the Company had recorded the right to reclaim cash collateral of $110 million and $97 million, respectively, within other assets on the Company’s Unaudited Condensed Consolidated Balance Sheets and had recorded the obligation to return cash collateral of $40 million and $22 million, respectively, within deposits on the Company’s Unaudited Condensed Consolidated Balance Sheets. Contingent Features Certain of the Company’s derivative instruments contain provisions that require the Company’s debt maintain a certain credit rating from each of the major credit rating agencies. If the Company’s debt were to fall below this rating, it would be in violation of these provisions, and the counterparties to the derivative instruments could demand immediate and ongoing full overnight collateralization on derivative instruments in net liability positions. The aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a liability position on September 30, 2019, was $54 million for which the Company has collateral requirements of $52 million in the normal course of business. If the credit risk-related contingent features underlying these agreements had been triggered on September 30, 2019, the Company’s collateral requirements to its counterparties would increase by $2 million. The aggregate fair value of all derivative instruments with credit risk-related contingent features that were in a liability position on December 31, 2018, was $24 million for which the Company had collateral requirements of $23 million in the normal course of business. If the credit risk-related contingent features underlying these agreements had been triggered on December 31, 2018, the Company’s collateral requirements to its counterparties would have increased by $1 million. Netting of Derivative Instruments The Company is party to master netting arrangements with its financial institution counterparties for some of its derivative and hedging activities. The Company does not offset assets and liabilities under these master netting arrangements for financial statement presentation purposes. The master netting arrangements provide for single net settlement of all derivative instrument arrangements, as well as collateral, in the event of default with respect to, or termination of, any one contract with the respective counterparties. Cash collateral is usually posted by the counterparty with a net liability position in accordance with contract thresholds. The following table represents the Company’s total gross derivative instrument assets and liabilities subject to an enforceable master netting arrangement. The derivative instruments the Company has with its customers are not subject to an enforceable master netting arrangement.
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Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands |
Sep. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Assets: | ||
Cash and due from banks | $ 1,117,458 | $ 1,217,319 |
Federal funds sold, securities purchased under agreements to resell and interest bearing deposits | 5,356,141 | 2,115,307 |
Cash and cash equivalents | 6,473,599 | 3,332,626 |
Trading account assets | 564,000 | 237,656 |
Debt securities available for sale | 7,612,590 | 10,981,216 |
Debt securities held to maturity (fair value of $6,514,496 and $2,925,420 at September 30, 2019 and December 31, 2018, respectively) | 6,334,634 | 2,885,613 |
Loans held for sale, at fair value | 134,314 | 68,766 |
Loans | 63,320,571 | 65,186,554 |
Allowance for loan losses | 942,191 | 885,242 |
Net loans | 62,378,380 | 64,301,312 |
Premises and equipment, net | 1,085,635 | 1,152,958 |
Bank owned life insurance | 746,819 | 736,171 |
Goodwill | 4,983,296 | 4,983,296 |
Other assets | 2,600,820 | 2,267,560 |
Total assets | 92,914,087 | 90,947,174 |
Deposits: | ||
Noninterest bearing | 21,019,303 | 20,183,876 |
Interest bearing | 52,550,139 | 51,984,111 |
Total deposits | 73,569,442 | 72,167,987 |
FHLB and other borrowings | 3,709,949 | 3,987,590 |
Federal funds purchased and securities sold under agreements to repurchase | 117,421 | 102,275 |
Other short-term borrowings | 45 | 0 |
Accrued expenses and other liabilities | 1,415,612 | 1,176,793 |
Total liabilities | 78,812,469 | 77,434,645 |
Shareholder’s Equity: | ||
Series A Preferred stock, $.0.01 par value, liquidation preference $200,000 per share, authorized — 30,000,000 shares, issued — 1,150 at both September 30, 2019 and December 31, 2018 | 229,475 | 229,475 |
Common stock — $0.01 par value; authorized — 300,000,000 shares, issued — 222,963,891 and 222,950,751 shares at September 30, 2019 and December 31, 2018, respectively | 2,230 | 2,230 |
Surplus | 14,359,966 | 14,545,849 |
Accumulated deficit | (585,859) | (1,107,198) |
Accumulated other comprehensive income (loss) | 66,009 | (186,848) |
Total BBVA USA Bancshares, Inc. shareholder’s equity | 14,071,821 | 13,483,508 |
Noncontrolling interests | 29,797 | 29,021 |
Total shareholder’s equity | 14,101,618 | 13,512,529 |
Total liabilities and shareholder’s equity | $ 92,914,087 | $ 90,947,174 |
Condensed Consolidated Statements of Shareholder's Equity (Unaudited) - USD ($) $ in Thousands |
Total |
Preferred Stock |
Common Stock |
Surplus |
Accumulated Deficit |
Accumulated Other Comprehensive Income (Loss) |
Non-Controlling Interests |
||
---|---|---|---|---|---|---|---|---|---|
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Cumulative effect adjustment related to ASU adoptions | ASU 2016-01 | $ 13 | $ (13) | |||||||
Balance, as adjusted | $ 13,013,310 | $ 229,475 | $ 2,230 | $ 14,818,608 | (1,868,646) | (197,418) | $ 29,061 | ||
Balance, beginning of period at Dec. 31, 2017 | 13,013,310 | 229,475 | 2,230 | 14,818,608 | (1,868,659) | (197,405) | 29,061 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 567,603 | 566,121 | 1,482 | ||||||
Other comprehensive income (loss), net of tax | (114,004) | (114,004) | |||||||
Preferred stock dividends | (13,735) | (12,699) | (1,036) | ||||||
Common stock dividends | (110,000) | (110,000) | |||||||
Capital contribution | 25 | 25 | |||||||
Vesting of restricted stock | (712) | (712) | |||||||
Balance, end of period at Sep. 30, 2018 | 13,342,487 | 229,475 | 2,230 | 14,695,197 | (1,302,525) | (311,422) | 29,532 | ||
Balance, beginning of period at Jun. 30, 2018 | 13,190,644 | 229,475 | 2,230 | 14,699,773 | (1,476,614) | (293,323) | 29,103 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 174,515 | 174,089 | 426 | ||||||
Other comprehensive income (loss), net of tax | (18,099) | (18,099) | |||||||
Preferred stock dividends | (4,576) | (4,576) | |||||||
Capital contribution | 3 | 3 | |||||||
Balance, end of period at Sep. 30, 2018 | 13,342,487 | 229,475 | 2,230 | 14,695,197 | (1,302,525) | (311,422) | 29,532 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Cumulative effect adjustment related to ASU adoptions | ASU 2016-02, 2017-12, 2018-02 | [1] | 3,460 | 38,896 | (35,436) | |||||
Balance, as adjusted | 13,515,989 | 229,475 | 2,230 | 14,545,849 | (1,068,302) | (222,284) | 29,021 | ||
Balance, beginning of period at Dec. 31, 2018 | 13,512,529 | 229,475 | 2,230 | 14,545,849 | (1,107,198) | (186,848) | 29,021 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 484,112 | 482,443 | 1,669 | ||||||
Other comprehensive income (loss), net of tax | 288,293 | 288,293 | |||||||
Issuance of common stock | 802 | 802 | |||||||
Preferred stock dividends | (14,808) | (13,771) | (1,037) | ||||||
Common stock dividends | (170,000) | (170,000) | |||||||
Capital contribution | 144 | 144 | |||||||
Vesting of restricted stock | (2,914) | (2,914) | |||||||
Balance, end of period at Sep. 30, 2019 | 14,101,618 | 229,475 | 2,230 | 14,359,966 | (585,859) | 66,009 | 29,797 | ||
Balance, beginning of period at Jun. 30, 2019 | 13,870,723 | 229,475 | 2,230 | 14,364,527 | (768,290) | 13,508 | 29,273 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 182,945 | 182,431 | 514 | ||||||
Other comprehensive income (loss), net of tax | 52,501 | 52,501 | |||||||
Preferred stock dividends | (4,561) | (4,561) | |||||||
Capital contribution | 10 | 10 | |||||||
Balance, end of period at Sep. 30, 2019 | $ 14,101,618 | $ 229,475 | $ 2,230 | $ 14,359,966 | $ (585,859) | $ 66,009 | $ 29,797 | ||
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Comprehensive Income (Tables) |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in components of other comprehensive income (loss) | The following summarizes the change in the components of other comprehensive income.
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Schedule of accumulated other comprehensive income (loss) | Activity in accumulated other comprehensive income (loss), net of tax was as follows:
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Schedule of reclassifications out of accumulated other comprehensive income | The following table presents information on reclassifications out of accumulated other comprehensive income (loss).
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Related Party Transactions (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of derivative contracts between the Company and BBVA | The following represents the amount of securities purchased under agreement to resell and securities sold under agreement to repurchase where BBVA is the counterparty.
The net fair value of outstanding derivative contracts between the Company and BBVA are detailed below.
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Debt Securities Available for Sale and Debt Securities Held to Maturity - Other temporary impairments losses recognized in other comprehensive income (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
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Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||||
Other than temporary impairment recognized in other comprehensive income, beginning of period | $ 23,529 | $ 23,133 | $ 23,416 | $ 22,824 |
Reductions for securities paid off during the period (realized) | 0 | 0 | 0 | 0 |
Additions for the credit component on debt securities in which OTTI was not previously recognized | 0 | 0 | 0 | 0 |
Additions for the credit component on debt securities in which OTTI was previously recognized | 0 | 283 | 113 | 592 |
Other than temporary impairment recognized in other comprehensive income, end of period | $ 23,529 | $ 23,416 | $ 23,529 | $ 23,416 |
Derivatives and Hedging - Fair Value Hedges (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
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Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) related to hedge, firm commitments no longer qualifying as a fair value hedge | $ 0 | $ 0 | $ 0 | $ 0 |
Derivatives designated as hedging instrument | Fair value hedges | Interest rate swap | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Fair value hedges, weighted average expected remaining term | 3 years 5 months 55 days | |||
Long-term debt | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Carrying amount of hedging liabilities | 3,481,608 | $ 3,481,608 | ||
Cumulative amount of fair value hedging adjustment included in the carrying amount of hedged liabilities - Hedged items currently designated | 45,962 | 45,962 | ||
Cumulative amount of fair value hedging adjustment included in the carrying amount of hedged liabilities - Hedged items no longer designated | $ 2,430 | $ 2,430 |
Loan Sales and Servicing - Real Estate Mortgages Sold With Retained Servicing (Details) - USD ($) $ in Thousands |
Sep. 30, 2019 |
Dec. 31, 2018 |
|||||
---|---|---|---|---|---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
MSRs | $ 37,265 | $ 51,539 | |||||
Residential Real Estate Mortgage Loans Sold with Retained Servicing | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Recorded balance of residential real estate mortgage loans sold with retained servicing | [1] | 4,514,658 | 4,588,273 | ||||
MSRs | [2] | $ 37,265 | $ 51,539 | ||||
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Loans and Allowance for Loan Losses - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
Dec. 31, 2018 |
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Accounts, Notes, Loans and Financing Receivable Including Other Real Estated Owned [Line Items] | |||||
Impact to the allowance for loan losses related to modifications classified as TDRs | $ 6.7 | $ (0.1) | $ 18.3 | $ 11.2 | |
Commitments to lend additional funds to borrowers whose terms have been modified in a TDR | 60.4 | 60.4 | $ 54.2 | ||
Other real estate owned | 19.0 | 19.0 | 17.0 | ||
Loans secured by residential real estate properties for which formal foreclosure proceedings were in process | 53.0 | 53.0 | 62.0 | ||
Interest Rate Concession | |||||
Accounts, Notes, Loans and Financing Receivable Including Other Real Estated Owned [Line Items] | |||||
TDRs | 7.8 | 1.9 | 17.3 | 25.3 | |
Modification of Loan Structure | |||||
Accounts, Notes, Loans and Financing Receivable Including Other Real Estated Owned [Line Items] | |||||
TDRs | 25.0 | $ 106.5 | 57.8 | $ 113.0 | |
Residential real estate – mortgage | |||||
Accounts, Notes, Loans and Financing Receivable Including Other Real Estated Owned [Line Items] | |||||
Other real estate owned | $ 16.0 | $ 16.0 | $ 14.0 |
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