Texas | 74-1751768 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
100 W. Houston Street, San Antonio, Texas | 78205 |
(Address of principal executive offices) | (Zip code) |
Common Stock, $.01 Par Value | The New York Stock Exchange, Inc. |
5.375% Non-Cumulative Perpetual Preferred Stock, Series A | The New York Stock Exchange, Inc. |
(Title of each class) | (Name of each exchange on which registered) |
Large accelerated filer | ý | Accelerated filer | ¨ |
Non-accelerated filer | ¨ (Do not check if a smaller reporting company) | Smaller reporting company | ¨ |
Emerging growth company | ¨ |
Page | ||
PART I | ||
Item 1. | ||
Item 1A. | ||
Item 1B. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
PART II | ||
Item 5. | ||
Item 6. | ||
Item 7. | ||
Item 7A. | ||
Item 8. | ||
Item 9. | ||
Item 9A. | ||
Item 9B. | ||
PART III | ||
Item 10. | ||
Item 11. | ||
Item 12. | ||
Item 13. | ||
Item 14. | ||
PART IV | ||
Item 15. | ||
Item 16. | ||
SIGNATURES |
• | Commercial Banking. Frost Bank provides commercial banking services to corporations and other business clients. Loans are made for a wide variety of general corporate purposes, including financing for industrial and commercial properties and to a lesser extent, financing for interim construction related to industrial and commercial properties, financing for equipment, inventories and accounts receivable, and acquisition financing. We also originate commercial leases and offer treasury management services. |
• | Consumer Services. Frost Bank provides a full range of consumer banking services, including checking accounts, savings programs, ATMs, overdraft facilities, installment and real estate loans, home equity loans and lines of credit, drive-in and night deposit services, safe deposit facilities and brokerage services. |
• | International Banking. Frost Bank provides international banking services to customers residing in or dealing with businesses located in Mexico. These services consist of accepting deposits (generally only in U.S. dollars), making loans (generally only in U.S. dollars), issuing letters of credit, handling foreign collections, transmitting funds, and to a limited extent, dealing in foreign exchange. |
• | Correspondent Banking. Frost Bank acts as correspondent for approximately 203 financial institutions, which are primarily banks in Texas. These banks maintain deposits with Frost Bank, which offers them a full range of services including check clearing, transfer of funds, fixed income security services, and securities custody and clearance services. |
• | Trust Services. Frost Bank provides a wide range of trust, investment, agency and custodial services for individual and corporate clients. These services include the administration of estates and personal trusts, as well as the management of investment accounts for individuals, employee benefit plans and charitable foundations. At December 31, 2017, the estimated fair value of trust assets was $32.8 billion, including managed assets of $14.1 billion and custody assets of $18.7 billion. |
• | Capital Markets - Fixed-Income Services. Frost Bank’s Capital Markets Division supports the transaction needs of fixed-income institutional investors. Services include sales and trading, new issue underwriting, money market trading, advisory services and securities safekeeping and clearance. |
• | Global Trade Services. Frost Bank's Global Trade Services Division supports international business activities including foreign exchange, international letters of credit and export-import financing, among other things. |
• | 4.5% CET1 to risk-weighted assets; |
• | 6.0% Tier 1 capital (that is, CET1 plus Additional Tier 1 capital) to risk-weighted assets; |
• | 8.0% Total capital (that is, Tier 1 capital plus Tier 2 capital) to risk-weighted assets; and |
• | 4.0% Tier 1 capital to average consolidated assets as reported on consolidated financial statements (known as the “leverage ratio”). |
Name and Position Held | Age | Recent Business Experience |
Phillip D. Green Chairman of the Board, Chief Executive Officer and Director of Cullen/Frost | 63 | Officer of Frost Bank since July 1980. Group Executive Vice President, Chief Financial Officer of Cullen/Frost from October 1995 to January 2015. President of Cullen/Frost from January 2015 to March 2016. Chairman of the Board and Chief Executive Officer of Cullen/Frost from April 2016 to present. |
Patrick B. Frost Director of Cullen/Frost, President of Frost Bank, Group Executive Vice President, Frost Wealth Advisors of Frost Bank and President of Frost Insurance | 57 | Officer of Frost Bank since 1985. President of Frost Bank from August 1993 to present. Director of Cullen/Frost from May 1997 to present. Group Executive Vice President, Frost Wealth Advisors of Frost Bank from April 2016 to present. President of Frost Insurance from October 2014 to present. |
Jerry Salinas Group Executive Vice President, Chief Financial Officer of Cullen/Frost | 59 | Officer of Frost Bank since March 1986. Senior Executive Vice President, Treasurer of Cullen/Frost from 1997 to January 2015. Group Executive Vice President, Chief Financial Officer of Cullen/Frost from January 2015 to present. |
Annette Alonzo Group Executive Vice President, Chief Human Resources Officer of Frost Bank | 49 | Officer of Frost Bank since 1993. Executive Vice President, Human Resources of Frost Bank from July 2006 to January 2015. Senior Executive Vice President, Human Resources of Frost Bank from January 2015 to July 2015. Group Executive Vice President, Human Resources of Frost Bank from July 2015 to March 2016. Group Executive Vice President, Chief Human Resources Officer of Frost Bank from April 2016 to present. |
Robert A. Berman Group Executive Vice President, Research and Strategy of Frost Bank | 55 | Officer of Frost Bank since January 1989. Group Executive Vice President, Research and Strategy of Frost Bank from May 2001 to present. |
Paul H. Bracher President of Cullen/Frost and Group Executive Vice President, Chief Banking Officer of Frost Bank | 61 | Officer of Frost Bank since January 1982. President, State Regions of Frost Bank from February 2001 to January 2015. Group Executive Vice President, Chief Banking Officer of Frost Bank from January 2015 to present. President of Cullen/Frost from April 2016 to present. |
Gary McKnight Group Executive Vice President, Technology and Operations of Frost Bank | 64 | Officer of Frost Bank since 1981. Senior Executive Vice President, Technology and Operations of Frost Bank from January 2005 to July 2015. Group Executive Vice President, Technology and Operations of Frost Bank from July 2015 to present. |
William L. Perotti Group Executive Vice President, Chief Risk Officer of Frost Bank | 60 | Officer of Frost Bank since December 1982. Group Executive Vice President, Chief Credit Officer of Frost Bank from May 2001 to January 2015. Group Executive Vice President, Chief Risk Officer of Frost Bank from April 2005 to present. |
Mike Russell Group Executive Vice President, Chief Operations Officer | 61 | Officer of Frost Bank since December 2017. Group Executive Vice President, Chief Operations Officer since January 2018. Prior to joining Frost, Mr. Russell was a management consultant and former corporate technology executive. |
Jimmy Stead Group Executive Vice President, Executive Officer - Consumer Banking of Frost Bank | 42 | Officer of Frost Bank since July 2001. Senior Vice President Electronic Commerce Operations of Frost Bank from October 2007 to December 2015, Executive Vice President, Electronic Commerce Operations of Frost Bank from January 2016 to January 2017. Group Executive Vice President, Chief Consumer Banking Officer of Frost Bank from January 2017 to present. |
Candace Wolfshohl Group Executive Vice President, Culture and People Development of Frost Bank | 57 | Officer of Frost Bank since 1989. Executive Vice President, Staff Development of Frost Bank from January 2008 to January 2015. Senior Executive Vice President, Staff Development of Frost Bank from January 2015 to July 2015. Group Executive Vice President, Culture and People Development of Frost Bank from July 2015 to present. |
• | The ability to develop, maintain and build long-term customer relationships based on top quality service, high ethical standards and safe, sound assets. |
• | The ability to expand our market position. |
• | The scope, relevance and pricing of products and services offered to meet customer needs and demands. |
• | The rate at which we introduce new products and services relative to our competitors. |
• | Customer satisfaction with our level of service. |
• | Industry and general economic trends. |
• | Potential exposure to unknown or contingent liabilities of the target company. |
• | Exposure to potential asset quality issues of the target company. |
• | Potential disruption to our business. |
• | Potential diversion of our management’s time and attention. |
• | The possible loss of key employees and customers of the target company. |
• | Difficulty in estimating the value of the target company. |
• | Potential changes in banking or tax laws or regulations that may affect the target company. |
• | Actual or anticipated variations in quarterly results of operations. |
• | Recommendations by securities analysts. |
• | Operating and stock price performance of other companies that investors deem comparable to us. |
• | News reports relating to trends, concerns and other issues in the financial services industry. |
• | Perceptions in the marketplace regarding us and/or our competitors. |
• | New technology used, or services offered, by competitors. |
• | Significant acquisitions or business combinations, strategic partnerships, joint ventures or capital commitments by or involving us or our competitors. |
• | Failure to integrate acquisitions or realize anticipated benefits from acquisitions. |
• | Changes in government regulations. |
• | Geopolitical conditions such as acts or threats of terrorism or military conflicts. |
2017 | 2016 | ||||||||||||||
Sales Price Per Share | High | Low | High | Low | |||||||||||
First quarter | $ | 96.62 | $ | 82.08 | $ | 59.59 | $ | 42.41 | |||||||
Second quarter | 99.20 | 85.53 | 67.72 | 51.43 | |||||||||||
Third quarter | 98.70 | 81.09 | 73.80 | 59.00 | |||||||||||
Fourth quarter | 103.37 | 92.03 | 88.98 | 69.86 |
Cash Dividends Per Share | 2017 | 2016 | |||||
First quarter | $ | 0.54 | $ | 0.53 | |||
Second quarter | 0.57 | 0.54 | |||||
Third quarter | 0.57 | 0.54 | |||||
Fourth quarter | 0.57 | 0.54 | |||||
Total | $ | 2.25 | $ | 2.15 |
Plan Category | Number of Shares to be Issued Upon Exercise of Outstanding Awards | Weighted-Average Exercise Price of Outstanding Awards | Number of Shares Available for Future Grants | ||||||
Plans approved by shareholders | 3,339,499 | (1) | $ | 63.34 | (2) | 1,367,750 | |||
Plans not approved by shareholders | — | — | — | ||||||
Total | 3,339,499 | 63.34 | 1,367,750 |
(1) | Includes 2,917,142 shares related to stock options, 289,246 shares related to non-vested stock units, 53,008 shares related to director deferred stock units and 80,103 shares related to performance stock units (assuming attainment of the maximum payout rate as set forth by the performance criteria). |
(2) | Excludes outstanding stock units which are exercised for no consideration. |
Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans | Maximum Number (or Approximate Dollar Value) of Shares That May Yet Be Purchased Under the Plans at the End of the Period | ||||||||||
October 1, 2017 to October 31, 2017 | 14,120 | (1) | $ | 101.40 | — | $ | 150,000 | |||||||
November 1, 2017 to November 30, 2017 | — | — | — | 150,000 | ||||||||||
December 1, 2017 to December 31, 2017 | — | — | — | 150,000 | ||||||||||
Total | 14,120 | $ | — | — |
(1) | All of these repurchases were made in connection with the vesting of certain share awards. |
2012 | 2013 | 2014 | 2015 | 2016 | 2017 | ||||||||||||||||||
Cullen/Frost | $ | 100.00 | $ | 141.26 | $ | 137.67 | $ | 120.55 | $ | 183.24 | $ | 201.43 | |||||||||||
S&P 500 | 100.00 | 132.39 | 150.51 | 152.59 | 170.84 | 208.14 | |||||||||||||||||
S&P 500 Banks | 100.00 | 135.72 | 156.78 | 158.10 | 196.54 | 240.87 |
Year Ended December 31, | |||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||
Consolidated Statements of Income | |||||||||||||||||||
Interest income: | |||||||||||||||||||
Loans, including fees | $ | 534,804 | $ | 458,094 | $ | 433,872 | $ | 440,958 | $ | 415,230 | |||||||||
Securities | 315,599 | 313,943 | 307,394 | 249,705 | 219,904 | ||||||||||||||
Interest-bearing deposits | 41,608 | 16,103 | 8,123 | 10,725 | 7,284 | ||||||||||||||
Federal funds sold and resell agreements | 936 | 272 | 107 | 83 | 82 | ||||||||||||||
Total interest income | 892,947 | 788,412 | 749,496 | 701,471 | 642,500 | ||||||||||||||
Interest expense: | |||||||||||||||||||
Deposits | 17,188 | 7,248 | 9,024 | 11,022 | 14,459 | ||||||||||||||
Federal funds purchased and repurchase agreements | 1,522 | 204 | 167 | 134 | 121 | ||||||||||||||
Junior subordinated deferrable interest debentures | 3,955 | 3,281 | 2,725 | 2,488 | 6,426 | ||||||||||||||
Subordinated notes payable and other borrowings | 3,860 | 1,343 | 948 | 893 | 939 | ||||||||||||||
Total interest expense | 26,525 | 12,076 | 12,864 | 14,537 | 21,945 | ||||||||||||||
Net interest income | 866,422 | 776,336 | 736,632 | 686,934 | 620,555 | ||||||||||||||
Provision for loan losses | 35,460 | 51,673 | 51,845 | 16,314 | 20,582 | ||||||||||||||
Net interest income after provision for loan losses | 830,962 | 724,663 | 684,787 | 670,620 | 599,973 | ||||||||||||||
Non-interest income: | |||||||||||||||||||
Trust and investment management fees | 110,675 | 104,240 | 105,512 | 106,237 | 91,375 | ||||||||||||||
Service charges on deposit accounts | 84,182 | 81,203 | 81,350 | 81,946 | 81,432 | ||||||||||||||
Insurance commissions and fees | 46,169 | 47,154 | 48,926 | 45,115 | 43,140 | ||||||||||||||
Interchange and debit card transaction fees | 23,232 | 21,369 | 19,666 | 18,372 | 16,979 | ||||||||||||||
Other charges, commissions and fees | 39,931 | 39,623 | 37,551 | 36,180 | 34,185 | ||||||||||||||
Net gain (loss) on securities transactions | (4,941 | ) | 14,975 | 69 | 38 | 1,176 | |||||||||||||
Other | 37,222 | 41,144 | 35,656 | 32,256 | 34,531 | ||||||||||||||
Total non-interest income | 336,470 | 349,708 | 328,730 | 320,144 | 302,818 | ||||||||||||||
Non-interest expense: | |||||||||||||||||||
Salaries and wages | 337,068 | 318,665 | 310,504 | 292,349 | 273,692 | ||||||||||||||
Employee benefits | 74,575 | 72,615 | 69,746 | 60,151 | 62,407 | ||||||||||||||
Net occupancy | 75,971 | 71,627 | 65,690 | 55,745 | 50,468 | ||||||||||||||
Technology, furniture and equipment | 74,335 | 71,208 | 64,373 | 62,087 | 58,443 | ||||||||||||||
Deposit insurance | 20,128 | 17,428 | 14,519 | 13,232 | 11,682 | ||||||||||||||
Intangible amortization | 1,703 | 2,429 | 3,325 | 3,520 | 3,141 | ||||||||||||||
Other | 175,289 | 178,988 | 165,561 | 167,656 | 152,077 | ||||||||||||||
Total non-interest expense | 759,069 | 732,960 | 693,718 | 654,740 | 611,910 | ||||||||||||||
Income before income taxes | 408,363 | 341,411 | 319,799 | 336,024 | 290,881 | ||||||||||||||
Income taxes | 44,214 | 37,150 | 40,471 | 58,047 | 53,015 | ||||||||||||||
Net income | 364,149 | 304,261 | 279,328 | 277,977 | 237,866 | ||||||||||||||
Preferred stock dividends | 8,063 | 8,063 | 8,063 | 8,063 | 6,719 | ||||||||||||||
Net income available to common shareholders | $ | 356,086 | $ | 296,198 | $ | 271,265 | $ | 269,914 | $ | 231,147 |
As of or for the Year Ended December 31, | |||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||
Per Common Share Data | |||||||||||||||||||
Net income - basic | $ | 5.56 | $ | 4.73 | $ | 4.31 | $ | 4.32 | $ | 3.82 | |||||||||
Net income - diluted | 5.51 | 4.70 | 4.28 | 4.29 | 3.80 | ||||||||||||||
Cash dividends declared and paid | 2.25 | 2.15 | 2.10 | 2.03 | 1.98 | ||||||||||||||
Book value | 49.68 | 45.03 | 44.30 | 42.87 | 39.13 | ||||||||||||||
Common Shares Outstanding | |||||||||||||||||||
Period-end | 63,476 | 63,474 | 61,982 | 63,149 | 60,566 | ||||||||||||||
Weighted-average shares - basic | 63,694 | 62,376 | 62,758 | 62,072 | 60,350 | ||||||||||||||
Dilutive effect of stock compensation | 968 | 593 | 715 | 902 | 766 | ||||||||||||||
Weighted - average shares - diluted | 64,662 | 62,969 | 63,473 | 62,974 | 61,116 | ||||||||||||||
Performance Ratios | |||||||||||||||||||
Return on average assets | 1.17 | % | 1.03 | % | 0.97 | % | 1.05 | % | 1.02 | % | |||||||||
Return on average common equity | 11.76 | 10.16 | 9.86 | 10.51 | 9.93 | ||||||||||||||
Net interest income to average earning assets | 3.69 | 3.56 | 3.45 | 3.41 | 3.41 | ||||||||||||||
Dividend pay-out ratio | 40.49 | 45.54 | 48.72 | 47.12 | 51.75 | ||||||||||||||
Balance Sheet Data | |||||||||||||||||||
Period-end: | |||||||||||||||||||
Loans | $ | 13,145,665 | $ | 11,975,392 | $ | 11,486,531 | $ | 10,987,535 | $ | 9,515,700 | |||||||||
Earning assets | 29,595,375 | 28,025,439 | 26,431,176 | 26,052,339 | 22,238,286 | ||||||||||||||
Total assets | 31,747,880 | 30,196,319 | 28,565,942 | 28,276,421 | 24,311,408 | ||||||||||||||
Non-interest-bearing demand deposits | 11,197,093 | 10,513,369 | 10,270,233 | 10,149,061 | 8,311,149 | ||||||||||||||
Interest-bearing deposits | 15,675,296 | 15,298,206 | 14,073,362 | 13,986,869 | 12,377,637 | ||||||||||||||
Total deposits | 26,872,389 | 25,811,575 | 24,343,595 | 24,135,930 | 20,688,786 | ||||||||||||||
Long-term debt and other borrowings | 234,736 | 236,117 | 235,939 | 235,761 | 222,181 | ||||||||||||||
Shareholders’ equity | 3,297,863 | 3,002,528 | 2,890,343 | 2,851,403 | 2,514,161 | ||||||||||||||
Average: | |||||||||||||||||||
Loans | $ | 12,460,148 | $ | 11,554,823 | $ | 11,267,402 | $ | 10,299,025 | $ | 9,229,574 | |||||||||
Earning assets | 28,359,131 | 26,717,013 | 25,954,510 | 23,877,476 | 20,991,221 | ||||||||||||||
Total assets | 30,450,207 | 28,832,093 | 28,060,626 | 25,766,301 | 22,750,422 | ||||||||||||||
Non-interest-bearing demand deposits | 10,819,426 | 10,034,319 | 10,179,810 | 9,125,030 | 7,657,774 | ||||||||||||||
Interest-bearing deposits | 15,085,492 | 14,477,525 | 13,860,948 | 12,927,729 | 11,610,320 | ||||||||||||||
Total deposits | 25,904,918 | 24,511,844 | 24,040,758 | 22,052,759 | 19,268,094 | ||||||||||||||
Long-term debt and other borrowings | 226,194 | 236,033 | 235,856 | 230,170 | 222,098 | ||||||||||||||
Shareholders’ equity | 3,173,264 | 3,058,896 | 2,895,192 | 2,712,226 | 2,455,041 | ||||||||||||||
Asset Quality | |||||||||||||||||||
Allowance for loan losses | $ | 155,364 | $ | 153,045 | $ | 135,859 | $ | 99,542 | $ | 92,438 | |||||||||
Allowance for losses to year-end loans | 1.18 | % | 1.28 | % | 1.18 | % | 0.91 | % | 0.97 | % | |||||||||
Net loan charge-offs | $ | 33,141 | $ | 34,487 | $ | 15,528 | $ | 9,210 | $ | 32,597 | |||||||||
Net loan charge-offs to average loans | 0.27 | % | 0.30 | % | 0.14 | % | 0.09 | % | 0.35 | % | |||||||||
Non-performing assets | $ | 157,292 | $ | 102,591 | $ | 85,722 | $ | 65,176 | $ | 69,773 | |||||||||
Non-performing assets to: | |||||||||||||||||||
Total loans plus foreclosed assets | 1.20 | % | 0.86 | % | 0.75 | % | 0.59 | % | 0.73 | % | |||||||||
Total assets | 0.50 | 0.34 | 0.30 | 0.23 | 0.29 | ||||||||||||||
Consolidated Capital Ratios | |||||||||||||||||||
Common equity tier 1 risk-based ratio | 12.42 | % | 12.52 | % | 11.37 | % | N/A | N/A | |||||||||||
Tier 1 risk-based ratio | 13.16 | 13.33 | 12.38 | 13.68 | % | 14.39 | % | ||||||||||||
Total risk-based ratio | 15.15 | 14.93 | 13.85 | 14.55 | 15.52 | ||||||||||||||
Leverage ratio | 8.46 | 8.14 | 7.79 | 8.16 | 8.49 | ||||||||||||||
Average shareholders’ equity to average total assets | 10.42 | 10.61 | 10.32 | 10.53 | 10.79 |
Year Ended December 31, 2017 | |||||||||||||||
4th Quarter | 3rd Quarter | 2nd Quarter | 1st Quarter | ||||||||||||
Interest income | $ | 234,295 | $ | 227,586 | $ | 219,274 | $ | 211,792 | |||||||
Interest expense | 10,381 | 8,375 | 4,486 | 3,283 | |||||||||||
Net interest income | 223,914 | 219,211 | 214,788 | 208,509 | |||||||||||
Provision for loan losses | 8,102 | 10,980 | 8,426 | 7,952 | |||||||||||
Non-interest income(1) | 90,075 | 81,615 | 81,080 | 83,700 | |||||||||||
Non-interest expense | 196,280 | 186,823 | 188,051 | 187,915 | |||||||||||
Income before income taxes | 109,607 | 103,023 | 99,391 | 96,342 | |||||||||||
Income taxes | 9,083 | 9,892 | 13,838 | 11,401 | |||||||||||
Net income | 100,524 | 93,131 | 85,553 | 84,941 | |||||||||||
Preferred stock dividends | 2,016 | 2,016 | 2,015 | 2,016 | |||||||||||
Net income available to common shareholders | $ | 98,508 | $ | 91,115 | $ | 83,538 | $ | 82,925 | |||||||
Net income per common share: | |||||||||||||||
Basic | $ | 1.54 | $ | 1.43 | $ | 1.30 | $ | 1.29 | |||||||
Diluted | 1.53 | 1.41 | 1.29 | 1.28 |
Year Ended December 31, 2016 | |||||||||||||||
4th Quarter | 3rd Quarter | 2nd Quarter | 1st Quarter | ||||||||||||
Interest income | $ | 204,868 | $ | 197,489 | $ | 193,451 | $ | 192,604 | |||||||
Interest expense | 3,265 | 2,982 | 2,949 | 2,880 | |||||||||||
Net interest income | 201,603 | 194,507 | 190,502 | 189,724 | |||||||||||
Provision for loan losses | 8,939 | 5,045 | 9,189 | 28,500 | |||||||||||
Non-interest income(2) | 93,434 | 82,114 | 78,017 | 96,143 | |||||||||||
Non-interest expense | 193,851 | 180,505 | 179,445 | 179,159 | |||||||||||
Income before income taxes | 92,247 | 91,071 | 79,885 | 78,208 | |||||||||||
Income taxes | 8,528 | 10,852 | 8,378 | 9,392 | |||||||||||
Net income | 83,719 | 80,219 | 71,507 | 68,816 | |||||||||||
Preferred stock dividends | 2,016 | 2,016 | 2,015 | 2,016 | |||||||||||
Net income available to common shareholders | $ | 81,703 | $ | 78,203 | $ | 69,492 | $ | 66,800 | |||||||
Net income per common share: | |||||||||||||||
Basic | $ | 1.29 | $ | 1.24 | $ | 1.12 | $ | 1.07 | |||||||
Diluted | 1.28 | 1.24 | 1.11 | 1.07 |
(1) | Includes net losses on securities transactions of $50 thousand, $4.9 million and $24 thousand during the second, third and fourth quarters of 2017, respectively. |
(2) | Includes net gains on securities transactions of $14.9 million and $109 thousand during the first and fourth quarters of 2016, respectively, and a net loss on securities transactions of $37 thousand during the third quarter of 2016. |
• | Local, regional, national and international economic conditions and the impact they may have on us and our customers and our assessment of that impact. |
• | Volatility and disruption in national and international financial and commodity markets. |
• | Government intervention in the U.S. financial system. |
• | Changes in the mix of loan geographies, sectors and types or the level of non-performing assets and charge-offs. |
• | Changes in estimates of future reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements. |
• | The effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board. |
• | Inflation, interest rate, securities market and monetary fluctuations. |
• | The effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance) with which we and our subsidiaries must comply. |
• | The soundness of other financial institutions. |
• | Political instability. |
• | Impairment of our goodwill or other intangible assets. |
• | Acts of God or of war or terrorism. |
• | The timely development and acceptance of new products and services and perceived overall value of these products and services by users. |
• | Changes in consumer spending, borrowings and savings habits. |
• | Changes in the financial performance and/or condition of our borrowers. |
• | Technological changes. |
• | Acquisitions and integration of acquired businesses. |
• | Our ability to increase market share and control expenses. |
• | Our ability to attract and retain qualified employees. |
• | Changes in the competitive environment in our markets and among banking organizations and other financial service providers. |
• | The effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters. |
• | Changes in the reliability of our vendors, internal control systems or information systems. |
• | Changes in our liquidity position. |
• | Changes in our organization, compensation and benefit plans. |
• | The costs and effects of legal and regulatory developments, the resolution of legal proceedings or regulatory or other governmental inquiries, the results of regulatory examinations or reviews and the ability to obtain required regulatory approvals. |
• | Greater than expected costs or difficulties related to the integration of new products and lines of business. |
• | Our success at managing the risks involved in the foregoing items. |
2017 | 2016 | 2015 | |||||||||
Taxable-equivalent net interest income | $ | 1,043,431 | $ | 939,958 | $ | 888,035 | |||||
Taxable-equivalent adjustment | 177,009 | 163,622 | 151,403 | ||||||||
Net interest income | 866,422 | 776,336 | 736,632 | ||||||||
Provision for loan losses | 35,460 | 51,673 | 51,845 | ||||||||
Non-interest income | 336,470 | 349,708 | 328,730 | ||||||||
Non-interest expense | 759,069 | 732,960 | 693,718 | ||||||||
Income before income taxes | 408,363 | 341,411 | 319,799 | ||||||||
Income taxes | 44,214 | 37,150 | 40,471 | ||||||||
Net income | 364,149 | 304,261 | 279,328 | ||||||||
Preferred stock dividends | 8,063 | 8,063 | 8,063 | ||||||||
Net income available to common shareholders | $ | 356,086 | $ | 296,198 | $ | 271,265 | |||||
Earnings per common share - basic | $ | 5.56 | $ | 4.73 | $ | 4.31 | |||||
Earnings per common share - diluted | 5.51 | 4.70 | 4.28 | ||||||||
Dividends per common share | 2.25 | 2.15 | 2.10 | ||||||||
Return on average assets | 1.17 | % | 1.03 | % | 0.97 | % | |||||
Return on average common equity | 11.76 | 10.16 | 9.86 | ||||||||
Average shareholders' equity to average assets | 10.42 | 10.61 | 10.32 |
2017 vs. 2016 | 2016 vs. 2015 | ||||||||||||||||||||||||||||||
Increase (Decrease) Due to Change in | Increase (Decrease) Due to Change in | ||||||||||||||||||||||||||||||
Rate | Volume | Number of Days | Total | Rate | Volume | Number of Days | Total | ||||||||||||||||||||||||
Interest-bearing deposits | $ | 22,369 | $ | 3,180 | $ | (44 | ) | $ | 25,505 | $ | 7,896 | $ | 40 | $ | 44 | $ | 7,980 | ||||||||||||||
Federal funds sold and resell agreements | 385 | 280 | (1 | ) | 664 | 67 | 97 | 1 | 165 | ||||||||||||||||||||||
Securities: | |||||||||||||||||||||||||||||||
Taxable | (4,482 | ) | (5,358 | ) | (206 | ) | (10,046 | ) | (5,340 | ) | (4,442 | ) | 206 | (9,576 | ) | ||||||||||||||||
Tax-exempt | (8,741 | ) | 31,136 | — | 22,395 | (1,231 | ) | 30,149 | — | 28,918 | |||||||||||||||||||||
Loans, net of unearned discounts | 42,509 | 38,161 | (1,266 | ) | 79,404 | 11,753 | 10,629 | 1,266 | 23,648 | ||||||||||||||||||||||
Total earning assets | 52,040 | 67,399 | (1,517 | ) | 117,922 | 13,145 | 36,473 | 1,517 | 51,135 | ||||||||||||||||||||||
Savings and interest checking | — | 252 | (3 | ) | 249 | — | 55 | 3 | 58 | ||||||||||||||||||||||
Money market deposit accounts | 8,040 | 21 | (13 | ) | 8,048 | (1,557 | ) | (201 | ) | 13 | (1,745 | ) | |||||||||||||||||||
Time accounts | 475 | (38 | ) | (4 | ) | 433 | (65 | ) | (81 | ) | 4 | (142 | ) | ||||||||||||||||||
Public funds | 1,216 | (5 | ) | (1 | ) | 1,210 | 47 | 5 | 1 | 53 | |||||||||||||||||||||
Federal funds purchased and repurchase agreements | 1,241 | 78 | (1 | ) | 1,318 | — | 36 | 1 | 37 | ||||||||||||||||||||||
Junior subordinated deferrable interest debentures | 673 | 1 | — | 674 | 555 | 1 | — | 556 | |||||||||||||||||||||||
Subordinated notes payable and other notes | 2,599 | (82 | ) | — | 2,517 | 394 | 1 | — | 395 | ||||||||||||||||||||||
Total interest-bearing liabilities | 14,244 | 227 | (22 | ) | 14,449 | (626 | ) | (184 | ) | 22 | (788 | ) | |||||||||||||||||||
Net change | $ | 37,796 | $ | 67,172 | $ | (1,495 | ) | $ | 103,473 | $ | 13,771 | $ | 36,657 | $ | 1,495 | $ | 51,923 |
2017 | 2016 | 2015 | |||||||||
Trust and investment management fees | $ | 110,675 | $ | 104,240 | $ | 105,512 | |||||
Service charges on deposit accounts | 84,182 | 81,203 | 81,350 | ||||||||
Insurance commissions and fees | 46,169 | 47,154 | 48,926 | ||||||||
Interchange and debit card transaction fees | 23,232 | 21,369 | 19,666 | ||||||||
Other charges, commissions and fees | 39,931 | 39,623 | 37,551 | ||||||||
Net gain (loss) on securities transactions | (4,941 | ) | 14,975 | 69 | |||||||
Other | 37,222 | 41,144 | 35,656 | ||||||||
Total | $ | 336,470 | $ | 349,708 | $ | 328,730 |
2017 | 2016 | 2015 | |||||||||
Salaries and wages | $ | 337,068 | $ | 318,665 | $ | 310,504 | |||||
Employee benefits | 74,575 | 72,615 | 69,746 | ||||||||
Net occupancy | 75,971 | 71,627 | 65,690 | ||||||||
Technology, furniture and equipment | 74,335 | 71,208 | 64,373 | ||||||||
Deposit insurance | 20,128 | 17,428 | 14,519 | ||||||||
Intangible amortization | 1,703 | 2,429 | 3,325 | ||||||||
Other | 175,289 | 178,988 | 165,561 | ||||||||
Total | $ | 759,069 | $ | 732,960 | $ | 693,718 |
2017 | 2016 | 2015 | |||||||||
Banking | $ | 347,034 | $ | 289,665 | $ | 262,038 | |||||
Frost Wealth Advisors | 24,395 | 19,093 | 19,968 | ||||||||
Non-Banks | (7,280 | ) | (4,497 | ) | (2,678 | ) | |||||
Consolidated net income | $ | 364,149 | $ | 304,261 | $ | 279,328 |
Tax Benefit/(Expense) | |||
Deferred taxes related to items recognized in continuing operations | $ | (5,488 | ) |
Deferred taxes related to items recognized in other comprehensive income: | |||
Deferred taxes on net actuarial loss on defined benefit post-retirement benefit plans | (8,022 | ) | |
Deferred taxes on net unrealized gain on securities available for sale | 15,939 | ||
Deferred taxes on net unrealized gain on securities transferred to held to maturity | 1,618 | ||
Net provisional adjustment to deferred taxes recognized as an income tax benefit | $ | 4,047 |
2017 | 2016 | 2015 | ||||||
Sources of Funds: | ||||||||
Deposits: | ||||||||
Non-interest-bearing | 35.5 | % | 34.8 | % | 36.3 | % | ||
Interest-bearing | 49.6 | 50.2 | 49.4 | |||||
Federal funds purchased and repurchase agreements | 3.2 | 2.7 | 2.3 | |||||
Long-term debt and other borrowings | 0.8 | 0.8 | 0.8 | |||||
Other non-interest-bearing liabilities | 0.5 | 0.9 | 0.9 | |||||
Equity capital | 10.4 | 10.6 | 10.3 | |||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | ||
Uses of Funds: | ||||||||
Loans | 40.9 | % | 40.1 | % | 40.2 | % | ||
Securities | 40.2 | 41.8 | 41.4 | |||||
Federal funds sold, resell agreements and interest-bearing deposits | 12.0 | 10.8 | 10.9 | |||||
Other non-interest-earning assets | 6.9 | 7.3 | 7.5 | |||||
Total | 100.0 | % | 100.0 | % | 100.0 | % |
2017 | Percentage of Total | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||
Commercial and industrial | $ | 4,792,388 | 36.4 | % | $ | 4,344,000 | $ | 4,120,522 | $ | 4,055,225 | $ | 3,766,635 | ||||||||||
Energy: | ||||||||||||||||||||||
Production | 1,182,326 | 9.0 | 971,767 | 1,249,678 | 1,160,404 | 616,893 | ||||||||||||||||
Service | 171,795 | 1.3 | 221,213 | 272,934 | 319,618 | 236,766 | ||||||||||||||||
Other | 144,972 | 1.1 | 193,081 | 235,583 | 293,923 | 261,750 | ||||||||||||||||
Total energy | 1,499,093 | 11.4 | 1,386,061 | 1,758,195 | 1,773,945 | 1,115,409 | ||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||
Commercial mortgages | 3,887,742 | 29.6 | 3,481,157 | 3,285,041 | 2,999,082 | 2,800,760 | ||||||||||||||||
Construction | 1,066,696 | 8.1 | 1,043,261 | 720,695 | 624,888 | 426,639 | ||||||||||||||||
Land | 331,986 | 2.5 | 311,030 | 286,991 | 291,907 | 239,937 | ||||||||||||||||
Total commercial real estate | 5,286,424 | 40.2 | 4,835,448 | 4,292,727 | 3,915,877 | 3,467,336 | ||||||||||||||||
Consumer real estate: | ||||||||||||||||||||||
Home equity loans | 355,342 | 2.7 | 345,130 | 340,528 | 342,725 | 329,853 | ||||||||||||||||
Home equity lines of credit | 291,950 | 2.2 | 264,862 | 233,525 | 220,128 | 195,132 | ||||||||||||||||
Other | 376,002 | 2.9 | 326,793 | 306,696 | 286,198 | 283,219 | ||||||||||||||||
Total consumer real estate | 1,023,294 | 7.8 | 936,785 | 880,749 | 849,051 | 808,204 | ||||||||||||||||
Total real estate | 6,309,718 | 48.0 | 5,772,233 | 5,173,476 | 4,764,928 | 4,275,540 | ||||||||||||||||
Consumer and other | 544,466 | 4.2 | 473,098 | 434,338 | 393,437 | 358,116 | ||||||||||||||||
Total loans | $ | 13,145,665 | 100.0 | % | $ | 11,975,392 | $ | 11,486,531 | $ | 10,987,535 | $ | 9,515,700 |
2017 | 2016 | ||||
Industry concentrations: | |||||
Energy | 11.4 | % | 11.6 | % | |
Public finance | 6.1 | 5.1 | |||
Medical services | 3.6 | 4.6 | |||
General and specific trade contractors | 3.6 | 3.6 | |||
Building materials and contractors | 3.2 | 3.1 | |||
Manufacturing, other | 3.1 | 3.7 | |||
Automobile dealers | 3.0 | 3.1 | |||
Religion | 2.6 | 2.5 | |||
Services | 2.5 | 2.6 | |||
Financial services, consumer credit | 2.2 | 1.5 | |||
Investor | 1.7 | 2.2 | |||
Transportation | 1.7 | 2.0 | |||
All other | 55.3 | 54.4 | |||
Total loans | 100.0 | % | 100.0 | % |
2017 | 2016 | ||||||||||||||||||
Number of Relationships | Period-End Balances | Number of Relationships | Period-End Balances | ||||||||||||||||
Committed | Outstanding | Committed | Outstanding | ||||||||||||||||
Committed amount: | |||||||||||||||||||
$20.0 million and greater | 224 | $ | 9,765,770 | $ | 5,446,315 | 208 | $ | 8,491,785 | $ | 4,658,742 | |||||||||
$10.0 million to $19.9 million | 162 | 2,250,279 | 1,319,667 | 174 | 2,373,209 | 1,482,969 |
2017 | 2016 | ||||||||||||||||||
Number of Relationships | Period-End Balances | Number of Relationships | Period-End Balances | ||||||||||||||||
Committed | Outstanding | Committed | Outstanding | ||||||||||||||||
Purchased shared national credits: | |||||||||||||||||||
$20.0 million and greater | 41 | $ | 1,502,958 | $ | 585,509 | 41 | $ | 1,456,331 | $ | 522,137 | |||||||||
$10.0 million to $19.9 million | 27 | 389,243 | 222,661 | 28 | 416,422 | 233,633 |
2017 | 2016 | ||||
Property type: | |||||
Office building | 19.8 | % | 18.2 | % | |
Office/warehouse | 16.6 | 16.5 | |||
Retail | 8.2 | 7.4 | |||
Multifamily | 6.7 | 7.9 | |||
Non-farm/non-residential | 6.5 | 7.4 | |||
1-4 Family | 5.4 | 5.5 | |||
Strip centers | 5.1 | 4.7 | |||
Religious | 4.8 | 5.0 | |||
Medical offices and services | 4.7 | 5.8 | |||
All other | 22.2 | 21.6 | |||
Total commercial real estate loans | 100.0 | % | 100.0 | % |
2017 | 2016 | ||||
Geographic region: | |||||
San Antonio | 26.6 | % | 25.3 | % | |
Houston | 22.3 | 23.1 | |||
Fort Worth | 17.3 | 18.1 | |||
Dallas | 14.0 | 14.6 | |||
Austin | 10.1 | 9.3 | |||
Rio Grande Valley | 4.7 | 4.1 | |||
Permian Basin | 3.0 | 3.2 | |||
Corpus Christi | 2.0 | 2.3 | |||
Total commercial real estate loans | 100.0 | % | 100.0 | % |
2017 | 2016 | ||||||
Consumer real estate: | |||||||
Home equity loans | $ | 355,342 | $ | 345,130 | |||
Home equity lines of credit | 291,950 | 264,862 | |||||
Other | 376,002 | 326,793 | |||||
Total consumer real estate | 1,023,294 | 936,785 | |||||
Consumer and other | 544,466 | 473,098 | |||||
Total consumer loans | $ | 1,567,760 | $ | 1,409,883 |
Due in One Year or Less | After One, but Within Five Years | After Five Years | Total | ||||||||||||
Commercial and industrial | $ | 1,845,717 | $ | 1,913,606 | $ | 728,834 | $ | 4,488,157 | |||||||
Energy | 1,007,125 | 433,897 | 42,788 | 1,483,810 | |||||||||||
Real estate construction | 633,156 | 1,946,593 | 1,639,979 | 4,219,728 | |||||||||||
Commercial real estate | 356,218 | 487,966 | 222,512 | 1,066,696 | |||||||||||
Total | $ | 3,842,216 | $ | 4,782,062 | $ | 2,634,113 | $ | 11,258,391 | |||||||
Loans with fixed interest rates | $ | 1,144,414 | $ | 1,477,032 | $ | 1,261,985 | $ | 3,883,431 | |||||||
Loans with floating interest rates | 2,697,802 | 3,305,030 | 1,372,128 | 7,374,960 | |||||||||||
Total | $ | 3,842,216 | $ | 4,782,062 | $ | 2,634,113 | $ | 11,258,391 |
2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||
Non-accrual loans: | |||||||||||||||||||
Commercial and industrial | $ | 46,186 | $ | 31,475 | $ | 25,111 | $ | 34,108 | $ | 26,143 | |||||||||
Energy | 94,302 | 57,571 | 21,180 | 636 | 590 | ||||||||||||||
Commercial real estate | 7,589 | 8,550 | 35,088 | 22,431 | 27,035 | ||||||||||||||
Consumer real estate | 2,109 | 2,130 | 1,862 | 2,212 | 2,207 | ||||||||||||||
Consumer and other | 128 | 425 | 226 | 538 | 745 | ||||||||||||||
Total non-accrual loans | 150,314 | 100,151 | 83,467 | 59,925 | 56,720 | ||||||||||||||
Restructured loans | 4,862 | — | — | — | 1,137 | ||||||||||||||
Foreclosed assets: | |||||||||||||||||||
Real estate | 2,116 | 2,440 | 2,255 | 5,251 | 11,916 | ||||||||||||||
Other | — | — | — | — | — | ||||||||||||||
Total foreclosed assets | 2,116 | 2,440 | 2,255 | 5,251 | 11,916 | ||||||||||||||
Total non-performing assets | $ | 157,292 | $ | 102,591 | $ | 85,722 | $ | 65,176 | $ | 69,773 | |||||||||
Ratio of non-performing assets to: | |||||||||||||||||||
Total loans and foreclosed assets | 1.20 | % | 0.86 | % | 0.75 | % | 0.59 | % | 0.73 | % | |||||||||
Total assets | 0.50 | 0.34 | 0.30 | 0.23 | 0.29 | ||||||||||||||
Accruing past due loans: | |||||||||||||||||||
30 to 89 days past due | $ | 93,428 | $ | 55,456 | $ | 59,480 | $ | 42,881 | $ | 31,297 | |||||||||
90 or more days past due | 14,432 | 24,864 | 8,108 | 20,941 | 7,635 | ||||||||||||||
Total accruing past due loans | $ | 107,860 | $ | 80,320 | $ | 67,588 | $ | 63,822 | $ | 38,932 | |||||||||
Ratio of accruing past due loans to total loans: | |||||||||||||||||||
30 to 89 days past due | 0.71 | % | 0.46 | % | 0.52 | % | 0.39 | % | 0.33 | % | |||||||||
90 or more days past due | 0.11 | 0.21 | 0.07 | 0.19 | 0.08 | ||||||||||||||
Total accruing past due loans | 0.82 | % | 0.67 | % | 0.59 | % | 0.58 | % | 0.41 | % |
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||||||||||||||||
Allowance for Loan Losses | Percentage of Loans in each Category to Total Loans | Allowance for Loan Losses | Percentage of Loans in each Category to Total Loans | Allowance for Loan Losses | Percentage of Loans in each Category to Total Loans | Allowance for Loan Losses | Percentage of Loans in each Category to Total Loans | Allowance for Loan Losses | Percentage of Loans in each Category to Total Loans | |||||||||||||||||||||||||
Commercial and industrial | $ | 59,614 | 36.4 | % | $ | 52,915 | 36.3 | % | $ | 42,993 | 35.9 | % | $ | 44,273 | 36.9 | % | $ | 46,700 | 39.6 | % | ||||||||||||||
Energy | 51,528 | 11.4 | 60,653 | 11.6 | 54,696 | 15.3 | 14,919 | 16.1 | 6,090 | 11.7 | ||||||||||||||||||||||||
Commercial real estate | 30,948 | 40.2 | 30,213 | 40.4 | 24,313 | 37.4 | 27,163 | 35.7 | 22,590 | 36.4 | ||||||||||||||||||||||||
Consumer real estate | 5,657 | 7.8 | 4,238 | 7.8 | 4,659 | 7.6 | 5,178 | 7.7 | 5,230 | 8.5 | ||||||||||||||||||||||||
Consumer and other | 7,617 | 4.2 | 5,026 | 3.9 | 9,198 | 3.8 | 8,009 | 3.6 | 5,010 | 3.8 | ||||||||||||||||||||||||
Unallocated | — | — | — | — | — | — | — | — | 6,818 | — | ||||||||||||||||||||||||
Total | $ | 155,364 | 100.0 | % | $ | 153,045 | 100.0 | % | $ | 135,859 | 100.0 | % | $ | 99,542 | 100.0 | % | $ | 92,438 | 100.0 | % |
2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||
Balance of allowance for loan losses at beginning of year | $ | 153,045 | $ | 135,859 | $ | 99,542 | $ | 92,438 | $ | 104,453 | |||||||||
Provision for loan losses | 35,460 | 51,673 | 51,845 | 16,314 | 20,582 | ||||||||||||||
Charge-offs: | |||||||||||||||||||
Commercial and industrial | (20,619 | ) | (15,910 | ) | (11,092 | ) | (12,073 | ) | (32,008 | ) | |||||||||
Energy | (10,595 | ) | (18,644 | ) | (6,000 | ) | (1,747 | ) | (924 | ) | |||||||||
Commercial real estate | (86 | ) | (82 | ) | (657 | ) | (3,800 | ) | (1,329 | ) | |||||||||
Consumer real estate | (925 | ) | (814 | ) | (577 | ) | (1,097 | ) | (1,047 | ) | |||||||||
Consumer and other | (15,579 | ) | (12,878 | ) | (11,246 | ) | (9,768 | ) | (9,489 | ) | |||||||||
Total charge-offs | (47,804 | ) | (48,328 | ) | (29,572 | ) | (28,485 | ) | (44,797 | ) | |||||||||
Recoveries: | |||||||||||||||||||
Commercial and industrial | 3,166 | 3,651 | 4,557 | 9,162 | 3,577 | ||||||||||||||
Energy | 586 | 56 | 3 | 510 | 11 | ||||||||||||||
Commercial real estate | 832 | 918 | 989 | 1,800 | 1,204 | ||||||||||||||
Consumer real estate | 419 | 557 | 486 | 364 | 328 | ||||||||||||||
Consumer and other | 9,660 | 8,659 | 8,009 | 7,439 | 7,080 | ||||||||||||||
Total recoveries | 14,663 | 13,841 | 14,044 | 19,275 | 12,200 | ||||||||||||||
Net charge-offs | (33,141 | ) | (34,487 | ) | (15,528 | ) | (9,210 | ) | (32,597 | ) | |||||||||
Balance at end of year | $ | 155,364 | $ | 153,045 | $ | 135,859 | $ | 99,542 | $ | 92,438 | |||||||||
Net loan charge-offs to average loans | 0.27 | % | 0.30 | % | 0.14 | % | 0.09 | % | 0.35 | % | |||||||||
Allowance for loan losses to year-end loans | 1.18 | 1.28 | 1.18 | 0.91 | 0.97 | ||||||||||||||
Allowance for loan losses to year-end non-accrual loans | 103.36 | 152.81 | 162.77 | 166.11 | 162.97 | ||||||||||||||
Average loans | $ | 12,460,148 | $ | 11,554,823 | $ | 11,267,402 | $ | 10,299,025 | $ | 9,229,574 | |||||||||
Year-end loans | 13,145,665 | 11,975,392 | 11,486,531 | 10,987,535 | 9,515,700 | ||||||||||||||
Year-end non-accrual loans | 150,314 | 100,151 | 83,467 | 59,925 | 56,720 |
2017 | 2016 | 2015 | ||||||||||||||||||
Amount | Percentage of Total | Amount | Percentage of Total | Amount | Percentage of Total | |||||||||||||||
Held to maturity: | ||||||||||||||||||||
U.S. Treasury | $ | — | — | % | $ | 249,889 | 2.0 | % | $ | 249,441 | 2.1 | % | ||||||||
Residential mortgage-backed securities | 3,610 | — | 4,511 | 0.1 | 6,456 | 0.1 | ||||||||||||||
States and political subdivisions | 1,428,488 | 12.0 | 1,994,710 | 16.0 | 2,405,762 | 20.2 | ||||||||||||||
Other | — | — | 1,350 | — | 1,350 | — | ||||||||||||||
Total | 1,432,098 | 12.0 | 2,250,460 | 18.1 | 2,663,009 | 22.4 | ||||||||||||||
Available for sale: | ||||||||||||||||||||
U.S. Treasury | 3,445,153 | 28.8 | 4,019,731 | 32.2 | 3,994,520 | 33.6 | ||||||||||||||
Residential mortgage-backed securities | 665,086 | 5.6 | 785,167 | 6.3 | 1,041,432 | 8.8 | ||||||||||||||
States and political subdivisions | 6,336,209 | 53.1 | 5,355,885 | 43.0 | 4,127,959 | 34.7 | ||||||||||||||
Other | 42,561 | 0.3 | 42,494 | 0.3 | 42,447 | 0.4 | ||||||||||||||
Total | 10,489,009 | 87.8 | 10,203,277 | 81.8 | 9,206,358 | 77.5 | ||||||||||||||
Trading: | ||||||||||||||||||||
U.S. Treasury | 19,210 | 0.2 | 16,594 | 0.1 | 16,443 | 0.1 | ||||||||||||||
States and political subdivisions | 1,888 | — | 109 | — | 136 | — | ||||||||||||||
Total | 21,098 | 0.2 | 16,703 | 0.1 | 16,579 | 0.1 | ||||||||||||||
Total securities | $ | 11,942,205 | 100.0 | % | $ | 12,470,440 | 100.0 | % | $ | 11,885,946 | 100.0 | % |
Within 1 Year | 1-5 Years | 5-10 Years | After 10 Years | Total | ||||||||||||||||||||||||||||||
Amount | Weighted Average Yield | Amount | Weighted Average Yield | Amount | Weighted Average Yield | Amount | Weighted Average Yield | Amount | Weighted Average Yield | |||||||||||||||||||||||||
Held to maturity: | ||||||||||||||||||||||||||||||||||
Residential mortgage- backed securities | $ | — | — | % | $ | 878 | 2.59 | % | $ | — | — | % | $ | 2,732 | 2.64 | % | $ | 3,610 | 2.63 | % | ||||||||||||||
States and political subdivisions | 264,587 | 7.44 | 159,765 | 5.04 | 386,711 | 3.92 | 617,425 | 4.40 | 1,428,488 | 4.90 | ||||||||||||||||||||||||
Other | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Total | $ | 264,587 | 7.44 | $ | 160,643 | 5.02 | $ | 386,711 | 3.92 | $ | 620,157 | 4.39 | $ | 1,432,098 | 4.90 | |||||||||||||||||||
Available for sale: | ||||||||||||||||||||||||||||||||||
U.S. Treasury | $ | — | — | % | $ | 3,152,672 | 1.69 | % | $ | 292,481 | 2.66 | % | $ | — | — | % | $ | 3,445,153 | 1.77 | % | ||||||||||||||
Residential mortgage- backed securities | 3,865 | 4.41 | 147,571 | 1.80 | 81,034 | 3.46 | 432,616 | 3.59 | 665,086 | 3.18 | ||||||||||||||||||||||||
States and political subdivisions | 58,057 | 6.72 | 903,836 | 3.22 | 146,527 | 4.83 | 5,227,789 | 4.66 | 6,336,209 | 4.48 | ||||||||||||||||||||||||
Other | — | — | — | — | — | — | — | — | 42,561 | — | ||||||||||||||||||||||||
Total | $ | 61,922 | 6.58 | $ | 4,204,079 | 2.02 | $ | 520,042 | 3.40 | $ | 5,660,405 | 4.58 | $ | 10,489,009 | 3.49 |
2017 | 2016 | 2015 | ||||||||||||||||||
Average Balance | Average Rate Paid | Average Balance | Average Rate Paid | Average Balance | Average Rate Paid | |||||||||||||||
Non-interest-bearing demand deposits: | ||||||||||||||||||||
Commercial and individual | $ | 10,155,502 | $ | 9,215,962 | $ | 9,334,604 | ||||||||||||||
Correspondent banks | 245,759 | 310,445 | 353,766 | |||||||||||||||||
Public funds | 418,165 | 507,912 | 491,440 | |||||||||||||||||
Total | 10,819,426 | 10,034,319 | 10,179,810 | |||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||
Private accounts: | ||||||||||||||||||||
Savings and interest checking | 6,376,855 | 0.02 | % | 5,745,385 | 0.02 | % | 4,831,927 | 0.02 | % | |||||||||||
Money market accounts | 7,502,494 | 0.17 | 7,466,252 | 0.06 | 7,715,890 | 0.08 | ||||||||||||||
Time accounts of $100,000 or more | 446,695 | 0.26 | 461,138 | 0.20 | 451,603 | 0.22 | ||||||||||||||
Time accounts under $100,000 | 329,245 | 0.18 | 349,964 | 0.12 | 422,765 | 0.12 | ||||||||||||||
Public funds | 430,203 | 0.33 | 454,786 | 0.04 | 438,763 | 0.03 | ||||||||||||||
Total | 15,085,492 | 0.11 | 14,477,525 | 0.05 | 13,860,948 | 0.07 | ||||||||||||||
Total deposits | $ | 25,904,918 | 0.07 | $ | 24,511,844 | 0.03 | $ | 24,040,758 | 0.04 |
2017 | 2016 | 2015 | ||||||
Commercial and individual | 93.8 | % | 91.8 | % | 91.7 | % | ||
Correspondent banks | 2.3 | 3.1 | 3.5 | |||||
Public funds | 3.9 | 5.1 | 4.8 | |||||
Total | 100.0 | % | 100.0 | % | 100.0 | % |
2017 | 2016 | 2015 | ||||||
Private accounts: | ||||||||
Savings and interest checking | 42.3 | % | 39.7 | % | 34.9 | % | ||
Money market accounts | 49.7 | 51.6 | 55.6 | |||||
Time accounts of $100,000 or more | 2.9 | 3.2 | 3.3 | |||||
Time accounts under $100,000 | 2.2 | 2.4 | 3.0 | |||||
Public funds | 2.9 | 3.1 | 3.2 | |||||
Total | 100.0 | % | 100.0 | % | 100.0 | % |
Percent | Percent | Percent | ||||||||||||||||||
2017 | of Total | 2016 | of Total | 2015 | of Total | |||||||||||||||
San Antonio | $ | 7,890,139 | 30.5 | % | $ | 7,354,061 | 30.0 | % | $ | 7,250,381 | 30.2 | % | ||||||||
Fort Worth | 4,784,241 | 18.5 | 4,466,086 | 18.2 | 4,165,748 | 17.3 | ||||||||||||||
Houston | 4,544,448 | 17.5 | 4,196,530 | 17.1 | 4,163,581 | 17.3 | ||||||||||||||
Austin | 3,089,645 | 11.9 | 2,928,448 | 11.9 | 2,721,616 | 11.3 | ||||||||||||||
Dallas | 2,048,712 | 7.9 | 1,958,646 | 8.0 | 1,883,866 | 7.8 | ||||||||||||||
Corpus Christi | 1,458,044 | 5.6 | 1,493,792 | 6.1 | 1,526,817 | 6.4 | ||||||||||||||
Permian Basin | 1,218,402 | 4.7 | 1,042,955 | 4.3 | 1,150,031 | 4.8 | ||||||||||||||
Rio Grande Valley | 775,646 | 3.0 | 787,431 | 3.2 | 778,407 | 3.2 | ||||||||||||||
Statewide | 95,641 | 0.4 | 283,895 | 1.2 | 400,311 | 1.7 | ||||||||||||||
Total | $ | 25,904,918 | 100.0 | % | $ | 24,511,844 | 100.0 | % | $ | 24,040,758 | 100.0 | % |
2017 | 2016 | 2015 | ||||||||||||||||||
Average Balance | Average Rate | Average Balance | Average Rate | Average Balance | Average Rate | |||||||||||||||
Federal funds sold and resell agreements | $ | 73,140 | 1.28 | % | $ | 42,361 | 0.64 | % | $ | 24,695 | 0.43 | % | ||||||||
Federal funds purchased and repurchase agreements | (978,571 | ) | 0.16 | (770,942 | ) | 0.03 | (648,851 | ) | 0.03 | |||||||||||
Net funds position | $ | (905,431 | ) | $ | (728,581 | ) | $ | (624,156 | ) |
Payments Due by Period | |||||||||||||||||||
1 Year or Less | More than 1 Year but Less than 3 Years | 3 Years or More but Less than 5 Years | 5 Years or More | Total | |||||||||||||||
Contractual obligations: | |||||||||||||||||||
Subordinated notes payable | $ | — | $ | — | $ | — | $ | 100,000 | $ | 100,000 | |||||||||
Junior subordinated deferrable interest debentures | — | — | — | 137,115 | 137,115 | ||||||||||||||
Operating leases | 27,990 | 60,697 | 59,494 | 347,187 | 495,368 | ||||||||||||||
Deposits with stated maturity dates | 643,058 | 149,853 | — | — | 792,911 | ||||||||||||||
671,048 | 210,550 | 59,494 | 584,302 | 1,525,394 | |||||||||||||||
Other commitments: | |||||||||||||||||||
Commitments to extend credit | 3,304,513 | 2,737,741 | 1,214,342 | 692,804 | 7,949,400 | ||||||||||||||
Standby letters of credit | 217,855 | 15,280 | 2,414 | 1,046 | 236,595 | ||||||||||||||
3,522,368 | 2,753,021 | 1,216,756 | 693,850 | 8,185,995 | |||||||||||||||
Total contractual obligations and other commitments | $ | 4,193,416 | $ | 2,963,571 | $ | 1,276,250 | $ | 1,278,152 | $ | 9,711,389 |
December 31, | |||||||
2017 | 2016 | ||||||
Assets: | |||||||
Cash and due from banks | $ | 545,542 | $ | 561,838 | |||
Interest-bearing deposits | 4,347,538 | 3,560,865 | |||||
Federal funds sold and resell agreements | 159,967 | 18,742 | |||||
Total cash and cash equivalents | 5,053,047 | 4,141,445 | |||||
Securities held to maturity, at amortized cost | 1,432,098 | 2,250,460 | |||||
Securities available for sale, at estimated fair value | 10,489,009 | 10,203,277 | |||||
Trading account securities | 21,098 | 16,703 | |||||
Loans, net of unearned discounts | 13,145,665 | 11,975,392 | |||||
Less: Allowance for loan losses | (155,364 | ) | (153,045 | ) | |||
Net loans | 12,990,301 | 11,822,347 | |||||
Premises and equipment, net | 520,958 | 525,821 | |||||
Goodwill | 654,952 | 654,952 | |||||
Other intangible assets, net | 5,073 | 6,776 | |||||
Cash surrender value of life insurance policies | 180,477 | 177,884 | |||||
Accrued interest receivable and other assets | 400,867 | 396,654 | |||||
Total assets | $ | 31,747,880 | $ | 30,196,319 | |||
Liabilities: | |||||||
Deposits: | |||||||
Non-interest-bearing demand deposits | $ | 11,197,093 | $ | 10,513,369 | |||
Interest-bearing deposits | 15,675,296 | 15,298,206 | |||||
Total deposits | 26,872,389 | 25,811,575 | |||||
Federal funds purchased and repurchase agreements | 1,147,824 | 976,992 | |||||
Junior subordinated deferrable interest debentures, net of unamortized issuance costs | 136,184 | 136,127 | |||||
Subordinated notes, net of unamortized issuance costs | 98,552 | 99,990 | |||||
Accrued interest payable and other liabilities | 195,068 | 169,107 | |||||
Total liabilities | 28,450,017 | 27,193,791 | |||||
Shareholders’ Equity: | |||||||
Preferred stock, par value $0.01 per share; 10,000,000 shares authorized; 6,000,000 Series A shares ($25 liquidation preference) issued in both 2017 and 2016 | 144,486 | 144,486 | |||||
Common stock, par value $0.01 per share; 210,000,000 shares authorized; 64,236,306 shares issued at December 31, 2017 and 63,632,464 shares issued at December 31, 2016 | 642 | 637 | |||||
Additional paid-in capital | 953,361 | 906,732 | |||||
Retained earnings | 2,187,069 | 1,985,569 | |||||
Accumulated other comprehensive income, net of tax | 79,512 | (24,623 | ) | ||||
Treasury stock, at cost; 760,720 shares in 2017 and 158,243 in 2016. | (67,207 | ) | (10,273 | ) | |||
Total shareholders’ equity | 3,297,863 | 3,002,528 | |||||
Total liabilities and shareholders’ equity | $ | 31,747,880 | $ | 30,196,319 |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Interest income: | |||||||||||
Loans, including fees | $ | 534,804 | $ | 458,094 | $ | 433,872 | |||||
Securities: | |||||||||||
Taxable | 92,979 | 103,025 | 112,601 | ||||||||
Tax-exempt | 222,620 | 210,918 | 194,793 | ||||||||
Interest-bearing deposits | 41,608 | 16,103 | 8,123 | ||||||||
Federal funds sold and resell agreements | 936 | 272 | 107 | ||||||||
Total interest income | 892,947 | 788,412 | 749,496 | ||||||||
Interest expense: | |||||||||||
Deposits | 17,188 | 7,248 | 9,024 | ||||||||
Federal funds purchased and repurchase agreements | 1,522 | 204 | 167 | ||||||||
Junior subordinated deferrable interest debentures | 3,955 | 3,281 | 2,725 | ||||||||
Other long-term borrowings | 3,860 | 1,343 | 948 | ||||||||
Total interest expense | 26,525 | 12,076 | 12,864 | ||||||||
Net interest income | 866,422 | 776,336 | 736,632 | ||||||||
Provision for loan losses | 35,460 | 51,673 | 51,845 | ||||||||
Net interest income after provision for loan losses | 830,962 | 724,663 | 684,787 | ||||||||
Non-interest income: | |||||||||||
Trust and investment management fees | 110,675 | 104,240 | 105,512 | ||||||||
Service charges on deposit accounts | 84,182 | 81,203 | 81,350 | ||||||||
Insurance commissions and fees | 46,169 | 47,154 | 48,926 | ||||||||
Interchange and debit card transaction fees | 23,232 | 21,369 | 19,666 | ||||||||
Other charges, commissions and fees | 39,931 | 39,623 | 37,551 | ||||||||
Net gain (loss) on securities transactions | (4,941 | ) | 14,975 | 69 | |||||||
Other | 37,222 | 41,144 | 35,656 | ||||||||
Total non-interest income | 336,470 | 349,708 | 328,730 | ||||||||
Non-interest expense: | |||||||||||
Salaries and wages | 337,068 | 318,665 | 310,504 | ||||||||
Employee benefits | 74,575 | 72,615 | 69,746 | ||||||||
Net occupancy | 75,971 | 71,627 | 65,690 | ||||||||
Technology, furniture and equipment | 74,335 | 71,208 | 64,373 | ||||||||
Deposit insurance | 20,128 | 17,428 | 14,519 | ||||||||
Intangible amortization | 1,703 | 2,429 | 3,325 | ||||||||
Other | 175,289 | 178,988 | 165,561 | ||||||||
Total non-interest expense | 759,069 | 732,960 | 693,718 | ||||||||
Income before income taxes | 408,363 | 341,411 | 319,799 | ||||||||
Income taxes | 44,214 | 37,150 | 40,471 | ||||||||
Net income | 364,149 | 304,261 | 279,328 | ||||||||
Preferred stock dividends | 8,063 | 8,063 | 8,063 | ||||||||
Net income available to common shareholders | $ | 356,086 | $ | 296,198 | $ | 271,265 | |||||
Earnings per common share: | |||||||||||
Basic | $ | 5.56 | $ | 4.73 | $ | 4.31 | |||||
Diluted | 5.51 | 4.70 | 4.28 |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Net income | $ | 364,149 | $ | 304,261 | $ | 279,328 | |||||
Other comprehensive income (loss), before tax: | |||||||||||
Securities available for sale and transferred securities: | |||||||||||
Change in net unrealized gain/loss during the period | 157,016 | (175,061 | ) | (12,450 | ) | ||||||
Change in net unrealized gain on securities transferred to held to maturity | (16,193 | ) | (32,207 | ) | (33,601 | ) | |||||
Reclassification adjustment for net (gains) losses included in net income | 4,941 | (14,975 | ) | (69 | ) | ||||||
Total securities available for sale and transferred securities | 145,764 | (222,243 | ) | (46,120 | ) | ||||||
Defined-benefit post-retirement benefit plans: | |||||||||||
Change in the net actuarial gain/loss | (597 | ) | 1,914 | (3,877 | ) | ||||||
Reclassification adjustment for net amortization of actuarial gain/loss included in net income as a component of net periodic cost (benefit) | 5,429 | 7,274 | 6,995 | ||||||||
Total defined-benefit post-retirement benefit plans | 4,832 | 9,188 | 3,118 | ||||||||
Other comprehensive income (loss), before tax | 150,596 | (213,055 | ) | (43,002 | ) | ||||||
Deferred tax expense (benefit) | 46,461 | (74,569 | ) | (15,051 | ) | ||||||
Other comprehensive income (loss), net of tax | 104,135 | (138,486 | ) | (27,951 | ) | ||||||
Comprehensive income | $ | 468,284 | $ | 165,775 | $ | 251,377 |
Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss), Net of Tax | Treasury Stock | Total | |||||||||||||||||||||
Balance at January 1, 2015 | $ | 144,486 | $ | 637 | $ | 886,476 | $ | 1,710,324 | $ | 141,814 | $ | (32,334 | ) | $ | 2,851,403 | ||||||||||||
Net income | — | — | — | 279,328 | — | — | 279,328 | ||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | (27,951 | ) | — | (27,951 | ) | ||||||||||||||||||
Stock option exercises/stock unit conversions (321,266 shares) | — | — | (2,248 | ) | (4,240 | ) | — | 21,341 | 14,853 | ||||||||||||||||||
Tax benefits from stock-based compensation | — | — | 1,434 | — | — | — | 1,434 | ||||||||||||||||||||
Stock-based compensation expense recognized in earnings | — | — | 12,737 | — | — | — | 12,737 | ||||||||||||||||||||
Non-vested stock awards (15,790 shares) | — | — | (1,049 | ) | — | — | 1,049 | — | |||||||||||||||||||
Purchase of treasury stock (1,504,146 shares) | — | — | — | — | — | (101,237 | ) | (101,237 | ) | ||||||||||||||||||
Cash dividends - preferred stock (approximately $1.34 per share) | — | — | — | (8,063 | ) | — | — | (8,063 | ) | ||||||||||||||||||
Cash dividends - common stock ($2.10 per share) | — | — | — | (132,161 | ) | — | — | (132,161 | ) | ||||||||||||||||||
Balance at December 31, 2015 | 144,486 | 637 | 897,350 | 1,845,188 | 113,863 | (111,181 | ) | 2,890,343 | |||||||||||||||||||
Net income | — | — | — | 304,261 | — | — | 304,261 | ||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | (138,486 | ) | — | (138,486 | ) | ||||||||||||||||||
Stock option exercises/stock unit conversions (1,509,121 shares) | — | — | (2,417 | ) | (20,915 | ) | — | 102,198 | 78,866 | ||||||||||||||||||
Stock-based compensation expense recognized in earnings | — | — | 11,799 | — | — | — | 11,799 | ||||||||||||||||||||
Purchase of treasury stock (17,233 shares) | — | — | — | — | — | (1,290 | ) | (1,290 | ) | ||||||||||||||||||
Cash dividends – preferred stock (approximately $1.34 per share) | — | — | — | (8,063 | ) | — | — | (8,063 | ) | ||||||||||||||||||
Cash dividends – common stock ($2.15 per share) | — | — | — | (134,902 | ) | — | — | (134,902 | ) | ||||||||||||||||||
Balance at December 31, 2016 | 144,486 | 637 | 906,732 | 1,985,569 | (24,623 | ) | (10,273 | ) | 3,002,528 | ||||||||||||||||||
Net income | — | — | — | 364,149 | — | — | 364,149 | ||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | 104,135 | — | 104,135 | ||||||||||||||||||||
Stock option exercises/stock unit conversions (1,150,920 shares) | — | 5 | 33,616 | (10,414 | ) | — | 44,539 | 67,746 | |||||||||||||||||||
Stock-based compensation expense recognized in earnings | — | — | 13,013 | — | — | — | 13,013 | ||||||||||||||||||||
Purchase of treasury stock (1,149,555 shares) | — | — | — | — | — | (101,473 | ) | (101,473 | ) | ||||||||||||||||||
Cash dividends – preferred stock (approximately $1.34 per share) | — | — | — | (8,063 | ) | — | — | (8,063 | ) | ||||||||||||||||||
Cash dividends – common stock ($2.25 per share) | — | — | — | (144,172 | ) | — | — | (144,172 | ) | ||||||||||||||||||
Balance at December 31, 2017 | $ | 144,486 | $ | 642 | $ | 953,361 | $ | 2,187,069 | $ | 79,512 | $ | (67,207 | ) | $ | 3,297,863 |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Operating Activities: | |||||||||||
Net income | $ | 364,149 | $ | 304,261 | $ | 279,328 | |||||
Adjustments to reconcile net income to net cash from operating activities: | |||||||||||
Provision for loan losses | 35,460 | 51,673 | 51,845 | ||||||||
Deferred tax expense (benefit) | (14,493 | ) | (11,598 | ) | (19,059 | ) | |||||
Accretion of loan discounts | (16,062 | ) | (15,582 | ) | (14,447 | ) | |||||
Securities premium amortization (discount accretion), net | 89,933 | 79,705 | 73,785 | ||||||||
Net (gain) loss on securities transactions | 4,941 | (14,975 | ) | (69 | ) | ||||||
Depreciation and amortization | 47,812 | 48,177 | 42,138 | ||||||||
Net (gain) loss on sale/write-down of assets/foreclosed assets | (4,697 | ) | (3,618 | ) | (1,765 | ) | |||||
Stock-based compensation | 13,013 | 11,799 | 12,737 | ||||||||
Net tax benefit from stock-based compensation | 9,062 | 5,063 | 1,434 | ||||||||
Earnings on life insurance policies | (3,190 | ) | (3,599 | ) | (3,585 | ) | |||||
Net change in: | |||||||||||
Trading account securities | (3,842 | ) | (124 | ) | (1,153 | ) | |||||
Accrued interest receivable and other assets | (55,179 | ) | (7,395 | ) | (13,038 | ) | |||||
Accrued interest payable and other liabilities | 71,172 | (5,945 | ) | (13,291 | ) | ||||||
Net cash from operating activities | 538,079 | 437,842 | 394,860 | ||||||||
Investing Activities: | |||||||||||
Securities held to maturity: | |||||||||||
Purchases | — | — | (1,350 | ) | |||||||
Sales | — | 136,719 | — | ||||||||
Maturities, calls and principal repayments | 783,176 | 228,641 | 209,425 | ||||||||
Securities available for sale: | |||||||||||
Purchases | (13,529,192 | ) | (16,419,833 | ) | (14,147,908 | ) | |||||
Sales | 11,963,359 | 14,847,380 | 12,683,169 | ||||||||
Maturities, calls and principal repayments | 1,328,143 | 335,750 | 658,199 | ||||||||
Proceeds from sale of loans | — | 30,470 | — | ||||||||
Net change in loans | (1,187,631 | ) | (538,989 | ) | (500,990 | ) | |||||
Net cash (paid) received in acquisitions | — | (492 | ) | — | |||||||
Benefits received on life insurance policies | 597 | 906 | 444 | ||||||||
Proceeds from sales of premises and equipment | 4,525 | 58,774 | 2,538 | ||||||||
Purchases of premises and equipment | (34,089 | ) | (53,648 | ) | (147,129 | ) | |||||
Proceeds from sales of repossessed properties | 517 | 341 | 4,682 | ||||||||
Net cash from investing activities | (670,595 | ) | (1,373,981 | ) | (1,238,920 | ) | |||||
Financing Activities: | |||||||||||
Net change in deposits | 1,060,814 | 1,467,980 | 207,665 | ||||||||
Net change in short-term borrowings | 170,832 | 83,470 | 90,403 | ||||||||
Proceeds from issuance of subordinated notes | 98,434 | — | — | ||||||||
Principal payments on subordinated notes | (100,000 | ) | — | — | |||||||
Proceeds from stock option exercises | 67,746 | 78,866 | 14,853 | ||||||||
Purchase of treasury stock | (101,473 | ) | (1,290 | ) | (101,237 | ) | |||||
Cash dividends paid on preferred stock | (8,063 | ) | (8,063 | ) | (8,063 | ) | |||||
Cash dividends paid on common stock | (144,172 | ) | (134,902 | ) | (132,161 | ) | |||||
Net cash from financing activities | 1,044,118 | 1,486,061 | 71,460 | ||||||||
Net change in cash and cash equivalents | 911,602 | 549,922 | (772,600 | ) | |||||||
Cash and cash equivalents at beginning of year | 4,141,445 | 3,591,523 | 4,364,123 | ||||||||
Cash and cash equivalents at end of year | $ | 5,053,047 | $ | 4,141,445 | $ | 3,591,523 |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Cash paid for interest | $ | 24,371 | $ | 11,886 | $ | 12,982 | |||||
Cash paid for income tax | 56,359 | 50,427 | 57,086 | ||||||||
Significant non-cash transactions: | |||||||||||
Deferred gain on sale of building and parking garage | — | 7,099 | — | ||||||||
Unsettled purchases/sales of securities | 37,481 | — | 2,998 | ||||||||
Loans foreclosed and transferred to other real estate owned and foreclosed assets | 279 | — | 933 | ||||||||
Loans to facilitate the sale of other real estate owned | — | 753 | 20 |
2017 | 2016 | ||||||||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||||||||||||||
Held to Maturity: | |||||||||||||||||||||||||||||||
U.S. Treasury | $ | — | $ | — | $ | — | $ | — | $ | 249,889 | $ | 1,762 | $ | — | $ | 251,651 | |||||||||||||||
Residential mortgage-backed securities | 3,610 | 15 | 38 | 3,587 | 4,511 | 39 | — | 4,550 | |||||||||||||||||||||||
States and political subdivisions | 1,428,488 | 26,462 | 2,746 | 1,452,204 | 1,994,710 | 16,821 | 6,335 | 2,005,196 | |||||||||||||||||||||||
Other | — | — | — | — | 1,350 | — | — | 1,350 | |||||||||||||||||||||||
Total | $ | 1,432,098 | $ | 26,477 | $ | 2,784 | $ | 1,455,791 | $ | 2,250,460 | $ | 18,622 | $ | 6,335 | $ | 2,262,747 | |||||||||||||||
Available for Sale: | |||||||||||||||||||||||||||||||
U.S. Treasury | $ | 3,453,391 | $ | 7,494 | $ | 15,732 | $ | 3,445,153 | $ | 4,003,692 | $ | 24,984 | $ | 8,945 | $ | 4,019,731 | |||||||||||||||
Residential mortgage-backed securities | 648,288 | 19,048 | 2,250 | 665,086 | 756,072 | 30,388 | 1,293 | 785,167 | |||||||||||||||||||||||
States and political subdivisions | 6,185,711 | 167,293 | 16,795 | 6,336,209 | 5,403,918 | 50,101 | 98,134 | 5,355,885 | |||||||||||||||||||||||
Other | 42,561 | — | — | 42,561 | 42,494 | — | — | 42,494 | |||||||||||||||||||||||
Total | $ | 10,329,951 | $ | 193,835 | $ | 34,777 | $ | 10,489,009 | $ | 10,206,176 | $ | 105,473 | $ | 108,372 | $ | 10,203,277 |
Less than 12 Months | More than 12 Months | Total | |||||||||||||||||||||
Estimated Fair Value | Unrealized Losses | Estimated Fair Value | Unrealized Losses | Estimated Fair Value | Unrealized Losses | ||||||||||||||||||
2017 | |||||||||||||||||||||||
Held to Maturity: | |||||||||||||||||||||||
Residential mortgage-backed securities | $ | 2,694 | $ | 38 | $ | — | $ | — | $ | 2,694 | $ | 38 | |||||||||||
States and political subdivisions | 28,591 | 58 | 74,113 | 2,688 | 102,704 | 2,746 | |||||||||||||||||
Total | $ | 31,285 | $ | 96 | $ | 74,113 | $ | 2,688 | $ | 105,398 | $ | 2,784 | |||||||||||
Available for Sale: | |||||||||||||||||||||||
U.S. Treasury | $ | 2,336,081 | $ | 9,861 | $ | 517,575 | $ | 5,871 | $ | 2,853,656 | $ | 15,732 | |||||||||||
Residential mortgage-backed securities | 144,264 | 949 | 45,436 | 1,301 | 189,700 | 2,250 | |||||||||||||||||
States and political subdivisions | 148,575 | 1,194 | 838,329 | 15,601 | 986,904 | 16,795 | |||||||||||||||||
Total | $ | 2,628,920 | $ | 12,004 | $ | 1,401,340 | $ | 22,773 | $ | 4,030,260 | $ | 34,777 |
Less than 12 Months | More than 12 Months | Total | |||||||||||||||||||||
Estimated Fair Value | Unrealized Losses | Estimated Fair Value | Unrealized Losses | Estimated Fair Value | Unrealized Losses | ||||||||||||||||||
2016 | |||||||||||||||||||||||
Held to Maturity: | |||||||||||||||||||||||
States and political subdivisions | $ | 425,896 | $ | 2,596 | $ | 183,245 | $ | 3,739 | $ | 609,141 | $ | 6,335 | |||||||||||
Total | $ | 425,896 | $ | 2,596 | $ | 183,245 | $ | 3,739 | $ | 609,141 | $ | 6,335 | |||||||||||
Available for Sale: | |||||||||||||||||||||||
U.S. Treasury | $ | 1,421,216 | $ | 8,945 | $ | — | $ | — | $ | 1,421,216 | $ | 8,945 | |||||||||||
Residential mortgage-backed securities | 81,442 | 1,031 | 6,413 | 262 | 87,855 | 1,293 | |||||||||||||||||
States and political subdivisions | 2,695,997 | 98,134 | — | — | 2,695,997 | 98,134 | |||||||||||||||||
Total | $ | 4,198,655 | $ | 108,110 | $ | 6,413 | $ | 262 | $ | 4,205,068 | $ | 108,372 |
Held to Maturity | Available for Sale | ||||||||||||||
Amortized Cost | Estimated Fair Value | Amortized Cost | Estimated Fair Value | ||||||||||||
Due in one year or less | $ | 264,587 | $ | 267,924 | $ | 57,390 | $ | 58,057 | |||||||
Due after one year through five years | 159,765 | 163,819 | 4,063,797 | 4,056,508 | |||||||||||
Due after five years through ten years | 386,711 | 391,784 | 425,148 | 439,008 | |||||||||||
Due after ten years | 617,425 | 628,677 | 5,092,767 | 5,227,789 | |||||||||||
Residential mortgage-backed securities | 3,610 | 3,587 | 648,288 | 665,086 | |||||||||||
Equity securities | — | — | 42,561 | 42,561 | |||||||||||
Total | $ | 1,432,098 | $ | 1,455,791 | $ | 10,329,951 | $ | 10,489,009 |
2017 | 2016 | 2015 | |||||||||
Proceeds from sales | $ | — | $ | 136,719 | $ | — | |||||
Amortized cost | — | 132,974 | — | ||||||||
Gross realized gains | — | 3,770 | — | ||||||||
Gross realized losses | — | (25 | ) | — | |||||||
Tax expense related to securities gains/losses | — | (1,311 | ) | — |
2017 | 2016 | 2015 | |||||||||
Proceeds from sales | $ | 11,963,359 | $ | 14,847,380 | $ | 12,683,169 | |||||
Gross realized gains | 1 | 13,289 | 228 | ||||||||
Gross realized losses | (4,942 | ) | (2,059 | ) | (159 | ) | |||||
Tax benefit (expense) related to securities gains/losses | 1,729 | (3,931 | ) | (24 | ) |
2017 | 2016 | 2015 | |||||||||
Premium amortization | $ | (97,841 | ) | $ | (90,782 | ) | $ | (84,467 | ) | ||
Discount accretion | 7,908 | 11,077 | 10,682 | ||||||||
Net (premium amortization) discount accretion | $ | (89,933 | ) | $ | (79,705 | ) | $ | (73,785 | ) |
2017 | 2016 | ||||||
U.S. Treasury | $ | 19,210 | $ | 16,594 | |||
States and political subdivisions | 1,888 | 109 | |||||
Total | $ | 21,098 | $ | 16,703 |
2017 | 2016 | 2015 | |||||||||
Net gain on sales transactions | $ | 1,408 | $ | 1,236 | $ | 1,109 | |||||
Net mark-to-market gains (losses) | (43 | ) | (157 | ) | (53 | ) | |||||
Net gain on trading account securities | $ | 1,365 | $ | 1,079 | $ | 1,056 |
2017 | 2016 | ||||||
Commercial and industrial | $ | 4,792,388 | $ | 4,344,000 | |||
Energy: | |||||||
Production | 1,182,326 | 971,767 | |||||
Service | 171,795 | 221,213 | |||||
Other | 144,972 | 193,081 | |||||
Total energy | 1,499,093 | 1,386,061 | |||||
Commercial real estate: | |||||||
Commercial mortgages | 3,887,742 | 3,481,157 | |||||
Construction | 1,066,696 | 1,043,261 | |||||
Land | 331,986 | 311,030 | |||||
Total commercial real estate | 5,286,424 | 4,835,448 | |||||
Consumer real estate: | |||||||
Home equity loans | 355,342 | 345,130 | |||||
Home equity lines of credit | 291,950 | 264,862 | |||||
Other | 376,002 | 326,793 | |||||
Total consumer real estate | 1,023,294 | 936,785 | |||||
Total real estate | 6,309,718 | 5,772,233 | |||||
Consumer and other | 544,466 | 473,098 | |||||
Total loans | $ | 13,145,665 | $ | 11,975,392 |
Balance outstanding at December 31, 2016 | $ | 142,771 | |
Principal additions | 270,684 | ||
Principal reductions | (271,325 | ) | |
Other changes | 24,273 | ||
Balance outstanding at December 31, 2017 | $ | 166,403 |
2017 | 2016 | ||||||
Commercial and industrial | $ | 46,186 | $ | 31,475 | |||
Energy | 94,302 | 57,571 | |||||
Commercial real estate: | |||||||
Buildings, land and other | 7,589 | 8,550 | |||||
Construction | — | — | |||||
Consumer real estate | 2,109 | 2,130 | |||||
Consumer and other | 128 | 425 | |||||
Total | $ | 150,314 | $ | 100,151 |
Loans 30-89 Days Past Due | Loans 90 or More Days Past Due | Total Past Due Loans | Current Loans | Total Loans | Accruing Loans 90 or More Days Past Due | ||||||||||||||||||
Commercial and industrial | $ | 41,169 | $ | 12,418 | $ | 53,587 | $ | 4,738,801 | $ | 4,792,388 | $ | 5,589 | |||||||||||
Energy | 22,100 | 49,214 | 71,314 | 1,427,779 | 1,499,093 | 100 | |||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||
Buildings, land and other | 29,714 | 4,482 | 34,196 | 4,185,532 | 4,219,728 | 2,615 | |||||||||||||||||
Construction | 2,191 | 2,331 | 4,522 | 1,062,174 | 1,066,696 | 2,331 | |||||||||||||||||
Consumer real estate | 7,707 | 4,427 | 12,134 | 1,011,160 | 1,023,294 | 3,138 | |||||||||||||||||
Consumer and other | 4,791 | 665 | 5,456 | 539,010 | 544,466 | 659 | |||||||||||||||||
Total | $ | 107,672 | $ | 73,537 | $ | 181,209 | $ | 12,964,456 | $ | 13,145,665 | $ | 14,432 |
Unpaid Contractual Principal Balance | Recorded Investment With No Allowance | Recorded Investment With Allowance | Total Recorded Investment | Related Allowance | Average Recorded Investment | ||||||||||||||||||
2017 | |||||||||||||||||||||||
Commercial and industrial | $ | 60,781 | $ | 28,038 | $ | 15,722 | $ | 43,760 | $ | 7,553 | $ | 30,073 | |||||||||||
Energy | 99,606 | 33,080 | 61,162 | 94,242 | 13,267 | 76,492 | |||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||
Buildings, land and other | 10,795 | 6,394 | — | 6,394 | — | 6,164 | |||||||||||||||||
Construction | — | — | — | — | — | — | |||||||||||||||||
Consumer real estate | 1,214 | 1,214 | — | 1,214 | — | 1,167 | |||||||||||||||||
Consumer and other | — | — | — | — | — | 11 | |||||||||||||||||
Total | $ | 172,396 | $ | 68,726 | $ | 76,884 | $ | 145,610 | $ | 20,820 | $ | 113,907 | |||||||||||
2016 | |||||||||||||||||||||||
Commercial and industrial | $ | 40,288 | $ | 19,862 | $ | 9,047 | $ | 28,909 | $ | 5,436 | $ | 26,074 | |||||||||||
Energy | 60,522 | 27,759 | 29,804 | 57,563 | 3,750 | 57,360 | |||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||
Buildings, land and other | 11,369 | 6,866 | — | 6,866 | — | 17,729 | |||||||||||||||||
Construction | — | — | — | — | — | 438 | |||||||||||||||||
Consumer real estate | 977 | 655 | — | 655 | — | 537 | |||||||||||||||||
Consumer and other | 32 | 30 | — | 30 | — | 25 | |||||||||||||||||
Total | $ | 113,188 | $ | 55,172 | $ | 38,851 | $ | 94,023 | $ | 9,186 | $ | 102,163 | |||||||||||
2015 | |||||||||||||||||||||||
Commercial and industrial | $ | 26,067 | $ | 18,776 | $ | 4,084 | $ | 22,860 | $ | 2,378 | $ | 27,338 | |||||||||||
Energy | 25,240 | 8,689 | 12,450 | 21,139 | 2,000 | 7,235 | |||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||
Buildings, land and other | 37,126 | 32,425 | — | 32,425 | — | 18,211 | |||||||||||||||||
Construction | 793 | 569 | — | 569 | — | 1,320 | |||||||||||||||||
Consumer real estate | 755 | 485 | — | 485 | — | 664 | |||||||||||||||||
Consumer and other | — | — | — | — | — | — | |||||||||||||||||
Total | $ | 89,981 | $ | 60,944 | $ | 16,534 | $ | 77,478 | $ | 4,378 | $ | 54,768 |
2017 | 2016 | 2015 | |||||||||||||||||||||
Balance at Restructure | Balance at Year-end | Balance at Restructure | Balance at Year-end | Balance at Restructure | Balance at Year-end | ||||||||||||||||||
Commercial and industrial | $ | 4,026 | $ | 3,766 | $ | 2,148 | $ | 1,022 | $ | 709 | $ | 536 | |||||||||||
Energy | 56,096 | 54,330 | 87,572 | 43,841 | — | — | |||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||
Buildings, land and other | — | — | 1,455 | — | — | — | |||||||||||||||||
Construction | 388 | 388 | 243 | — | — | — | |||||||||||||||||
$ | 60,510 | $ | 58,484 | $ | 91,418 | $ | 44,863 | $ | 709 | $ | 536 |
2017 | 2016 | 2015 | |||||||||
Restructured loans past due in excess of 90 days at period-end: | |||||||||||
Number of loans | 1 | 2 | 1 | ||||||||
Dollar amount of loans | $ | 43,137 | $ | 3,230 | $ | 259 | |||||
Restructured loans on non-accrual status at period end | 53,622 | 44,863 | 536 | ||||||||
Charge-offs of restructured loans: | |||||||||||
Recognized in connection with restructuring | — | 4,115 | 88 | ||||||||
Recognized on previously restructured loans | 9,951 | 9,490 | — | ||||||||
Proceeds from sale of restructured loans | — | 30,470 | — |
• | Grades 1, 2 and 3 - These grades include loans to very high credit quality borrowers of investment or near investment grade. These borrowers are generally publicly traded (grades 1 and 2), have significant capital strength, moderate leverage, stable earnings and growth, and readily available financing alternatives. Smaller entities, regardless of strength, would generally not fit in these grades. |
• | Grades 4 and 5 - These grades include loans to borrowers of solid credit quality with moderate risk. Borrowers in these grades are differentiated from higher grades on the basis of size (capital and/or revenue), leverage, asset quality and the stability of the industry or market area. |
• | Grades 6, 7 and 8 - These grades include “pass grade” loans to borrowers of acceptable credit quality and risk. Such borrowers are differentiated from Grades 4 and 5 in terms of size, secondary sources of repayment or they are of lesser stature in other key credit metrics in that they may be over-leveraged, under capitalized, inconsistent in performance or in an industry or an economic area that is known to have a higher level of risk, volatility, or susceptibility to weaknesses in the economy. |
• | Grade 9 - This grade includes loans on management’s “watch list” and is intended to be utilized on a temporary basis for pass grade borrowers where a significant risk-modifying action is anticipated in the near term. |
• | Grade 10 - This grade is for “Other Assets Especially Mentioned” in accordance with regulatory guidelines. This grade is intended to be temporary and includes loans to borrowers whose credit quality has clearly deteriorated and are at risk of further decline unless active measures are taken to correct the situation. |
• | Grade 11 - This grade includes “Substandard” loans, in accordance with regulatory guidelines, for which the accrual of interest has not been stopped. By definition under regulatory guidelines, a “Substandard” loan has defined weaknesses which make payment default or principal exposure likely, but not yet certain. Such loans are apt to be dependent upon collateral liquidation, a secondary source of repayment or an event outside of the normal course of business. |
• | Grade 12 - This grade includes “Substandard” loans, in accordance with regulatory guidelines, for which the accrual of interest has been stopped. This grade includes loans where interest is more than 120 days past due and not fully secured and loans where a specific valuation allowance may be necessary, but generally does not exceed 30% of the principal balance. |
• | Grade 13 - This grade includes “Doubtful” loans in accordance with regulatory guidelines. Such loans are placed on non-accrual status and may be dependent upon collateral having a value that is difficult to determine or upon some near-term event which lacks certainty. Additionally, these loans generally have a specific valuation allowance in excess of 30% of the principal balance. |
• | Grade 14 - This grade includes “Loss” loans in accordance with regulatory guidelines. Such loans are to be charged-off or charged-down when payment is acknowledged to be uncertain or when the timing or value of payments cannot be determined. “Loss” is not intended to imply that the loan or some portion of it will never be paid, nor does it in any way imply that there has been a forgiveness of debt. |
December 31, 2017 | December 31, 2016 | ||||||||||||
Weighted Average Risk Grade | Loans | Weighted Average Risk Grade | Loans | ||||||||||
Commercial and industrial | |||||||||||||
Risk grades 1-8 | 6.06 | $ | 4,378,839 | 6.01 | $ | 3,989,722 | |||||||
Risk grade 9 | 9.00 | 170,285 | 9.00 | 106,988 | |||||||||
Risk grade 10 | 10.00 | 99,260 | 10.00 | 115,420 | |||||||||
Risk grade 11 | 11.00 | 97,818 | 11.00 | 100,245 | |||||||||
Risk grade 12 | 12.00 | 38,633 | 12.00 | 25,939 | |||||||||
Risk grade 13 | 13.00 | 7,553 | 13.00 | 5,686 | |||||||||
Total | 6.41 | $ | 4,792,388 | 6.35 | $ | 4,344,000 | |||||||
Energy | |||||||||||||
Risk grades 1-8 | 6.01 | $ | 1,199,207 | 6.34 | $ | 854,688 | |||||||
Risk grade 9 | 9.00 | 50,427 | 9.00 | 78,524 | |||||||||
Risk grade 10 | 10.00 | 64,282 | 10.00 | 150,872 | |||||||||
Risk grade 11 | 11.00 | 90,875 | 11.00 | 244,406 | |||||||||
Risk grade 12 | 12.00 | 81,035 | 12.00 | 53,821 | |||||||||
Risk grade 13 | 13.00 | 13,267 | 13.00 | 3,750 | |||||||||
Total | 6.97 | $ | 1,499,093 | 7.95 | $ | 1,386,061 | |||||||
Commercial real estate: | |||||||||||||
Buildings, land and other | |||||||||||||
Risk grades 1-8 | 6.75 | $ | 3,868,659 | 6.67 | $ | 3,463,064 | |||||||
Risk grade 9 | 9.00 | 151,487 | 9.00 | 109,110 | |||||||||
Risk grade 10 | 10.00 | 129,391 | 10.00 | 145,067 | |||||||||
Risk grade 11 | 11.00 | 62,602 | 11.00 | 66,396 | |||||||||
Risk grade 12 | 12.00 | 7,589 | 12.00 | 8,550 | |||||||||
Risk grade 13 | 13.00 | — | 13.00 | — | |||||||||
Total | 7.00 | $ | 4,219,728 | 6.95 | $ | 3,792,187 | |||||||
Construction | |||||||||||||
Risk grades 1-8 | 7.11 | $ | 1,019,635 | 6.97 | $ | 1,023,194 | |||||||
Risk grade 9 | 9.00 | 18,042 | 9.00 | 15,829 | |||||||||
Risk grade 10 | 10.00 | 23,393 | 10.00 | 2,889 | |||||||||
Risk grade 11 | 11.00 | 5,626 | 11.00 | 1,349 | |||||||||
Risk grade 12 | 12.00 | — | 12.00 | — | |||||||||
Risk grade 13 | 13.00 | — | 13.00 | — | |||||||||
Total | 7.23 | $ | 1,066,696 | 7.01 | $ | 1,043,261 |
2017 | 2016 | 2015 | |||||||||
Commercial and industrial | $ | (17,453 | ) | $ | (12,259 | ) | $ | (6,535 | ) | ||
Energy | (10,009 | ) | (18,588 | ) | (5,997 | ) | |||||
Commercial real estate: | |||||||||||
Buildings, land and other | 735 | 813 | 314 | ||||||||
Construction | 11 | 23 | 18 | ||||||||
Consumer real estate | (506 | ) | (257 | ) | (91 | ) | |||||
Consumer and other | (5,919 | ) | (4,219 | ) | (3,237 | ) | |||||
Total | $ | (33,141 | ) | $ | (34,487 | ) | $ | (15,528 | ) |
Commercial and Industrial | Energy | Commercial Real Estate | Consumer Real Estate | Consumer and Other | Total | ||||||||||||||||||
December 31, 2017 | |||||||||||||||||||||||
Historical valuation allowances | $ | 26,401 | $ | 22,073 | $ | 18,931 | $ | 2,473 | $ | 5,603 | $ | 75,481 | |||||||||||
Specific valuation allowances | 7,553 | 13,267 | — | — | — | 20,820 | |||||||||||||||||
General valuation allowances | 9,112 | 7,964 | 4,165 | 2,133 | (91 | ) | 23,283 | ||||||||||||||||
Macroeconomic valuation allowances | 16,548 | 8,224 | 7,852 | 1,051 | 2,105 | 35,780 | |||||||||||||||||
Total | $ | 59,614 | $ | 51,528 | $ | 30,948 | $ | 5,657 | $ | 7,617 | $ | 155,364 | |||||||||||
December 31, 2016 | |||||||||||||||||||||||
Historical valuation allowances | $ | 33,251 | $ | 34,626 | $ | 16,976 | $ | 2,225 | $ | 4,585 | $ | 91,663 | |||||||||||
Specific valuation allowances | 5,436 | 3,750 | — | — | — | 9,186 | |||||||||||||||||
General valuation allowances | 6,708 | 3,769 | 5,004 | 1,506 | (144 | ) | 16,843 | ||||||||||||||||
Macroeconomic valuation allowances | 7,520 | 18,508 | 8,233 | 507 | 585 | 35,353 | |||||||||||||||||
Total | $ | 52,915 | $ | 60,653 | $ | 30,213 | $ | 4,238 | $ | 5,026 | $ | 153,045 |
Commercial and Industrial | Energy | Commercial Real Estate | Consumer Real Estate | Consumer and Other | Total | ||||||||||||||||||
December 31, 2017 | |||||||||||||||||||||||
Individually evaluated | $ | 43,760 | $ | 94,242 | $ | 6,394 | $ | 1,214 | $ | — | $ | 145,610 | |||||||||||
Collectively evaluated | 4,748,628 | 1,404,851 | 5,280,030 | 1,022,080 | 544,466 | 13,000,055 | |||||||||||||||||
Total | $ | 4,792,388 | $ | 1,499,093 | $ | 5,286,424 | $ | 1,023,294 | $ | 544,466 | $ | 13,145,665 | |||||||||||
December 31, 2016 | |||||||||||||||||||||||
Individually evaluated | $ | 28,909 | $ | 57,563 | $ | 6,866 | $ | 655 | $ | 30 | $ | 94,023 | |||||||||||
Collectively evaluated | 4,315,091 | 1,328,498 | 4,828,582 | 936,130 | 473,068 | 11,881,369 | |||||||||||||||||
Total | $ | 4,344,000 | $ | 1,386,061 | $ | 4,835,448 | $ | 936,785 | $ | 473,098 | $ | 11,975,392 |
Commercial and Industrial | Energy | Commercial Real Estate | Consumer Real Estate | Consumer and Other | Total | ||||||||||||||||||
2017 | |||||||||||||||||||||||
Beginning balance | $ | 52,915 | $ | 60,653 | $ | 30,213 | $ | 4,238 | $ | 5,026 | $ | 153,045 | |||||||||||
Provision for loan losses | 24,152 | 884 | (11 | ) | 1,925 | 8,510 | 35,460 | ||||||||||||||||
Charge-offs | (20,619 | ) | (10,595 | ) | (86 | ) | (925 | ) | (15,579 | ) | (47,804 | ) | |||||||||||
Recoveries | 3,166 | 586 | 832 | 419 | 9,660 | 14,663 | |||||||||||||||||
Net charge-offs | (17,453 | ) | (10,009 | ) | 746 | (506 | ) | (5,919 | ) | (33,141 | ) | ||||||||||||
Ending balance | $ | 59,614 | $ | 51,528 | $ | 30,948 | $ | 5,657 | $ | 7,617 | $ | 155,364 | |||||||||||
Allocated to loans: | |||||||||||||||||||||||
Individually evaluated for impairment | $ | 7,553 | $ | 13,267 | $ | — | $ | — | $ | — | $ | 20,820 | |||||||||||
Collectively evaluated for impairment | 52,061 | 38,261 | 30,948 | 5,657 | 7,617 | 134,544 | |||||||||||||||||
Ending balance | $ | 59,614 | $ | 51,528 | $ | 30,948 | $ | 5,657 | $ | 7,617 | $ | 155,364 | |||||||||||
2016 | |||||||||||||||||||||||
Beginning balance | $ | 42,993 | $ | 54,696 | $ | 24,313 | $ | 4,659 | $ | 9,198 | $ | 135,859 | |||||||||||
Provision for loan losses | 22,181 | 24,545 | 5,064 | (164 | ) | 47 | 51,673 | ||||||||||||||||
Charge-offs | (15,910 | ) | (18,644 | ) | (82 | ) | (814 | ) | (12,878 | ) | (48,328 | ) | |||||||||||
Recoveries | 3,651 | 56 | 918 | 557 | 8,659 | 13,841 | |||||||||||||||||
Net charge-offs | (12,259 | ) | (18,588 | ) | 836 | (257 | ) | (4,219 | ) | (34,487 | ) | ||||||||||||
Ending balance | $ | 52,915 | $ | 60,653 | $ | 30,213 | $ | 4,238 | $ | 5,026 | $ | 153,045 | |||||||||||
Allocated to loans: | |||||||||||||||||||||||
Individually evaluated for impairment | $ | 5,436 | $ | 3,750 | $ | — | $ | — | $ | — | $ | 9,186 | |||||||||||
Collectively evaluated for impairment | 47,479 | 56,903 | 30,213 | 4,238 | 5,026 | 143,859 | |||||||||||||||||
Ending balance | $ | 52,915 | $ | 60,653 | $ | 30,213 | $ | 4,238 | $ | 5,026 | $ | 153,045 | |||||||||||
2015 | |||||||||||||||||||||||
Beginning balance | $ | 44,273 | $ | 14,919 | $ | 27,163 | $ | 5,178 | $ | 8,009 | $ | 99,542 | |||||||||||
Provision for loan losses | 5,255 | 45,774 | (3,182 | ) | (428 | ) | 4,426 | 51,845 | |||||||||||||||
Charge-offs | (11,092 | ) | (6,000 | ) | (657 | ) | (577 | ) | (11,246 | ) | (29,572 | ) | |||||||||||
Recoveries | 4,557 | 3 | 989 | 486 | 8,009 | 14,044 | |||||||||||||||||
Net charge-offs | (6,535 | ) | (5,997 | ) | 332 | (91 | ) | (3,237 | ) | (15,528 | ) | ||||||||||||
Ending balance | $ | 42,993 | $ | 54,696 | $ | 24,313 | $ | 4,659 | $ | 9,198 | $ | 135,859 | |||||||||||
Allocated to loans: | |||||||||||||||||||||||
Individually evaluated for impairment | $ | 2,378 | $ | 2,000 | $ | — | $ | — | $ | — | $ | 4,378 | |||||||||||
Collectively evaluated for impairment | 40,615 | 52,696 | 24,313 | 4,659 | 9,198 | 131,481 | |||||||||||||||||
Ending balance | $ | 42,993 | $ | 54,696 | $ | 24,313 | $ | 4,659 | $ | 9,198 | $ | 135,859 |
2017 | 2016 | ||||||
Land | $ | 107,249 | $ | 106,505 | |||
Buildings | 379,829 | 361,573 | |||||
Furniture and equipment | 179,424 | 167,723 | |||||
Leasehold improvements | 74,314 | 67,540 | |||||
Construction in progress | 11,107 | 19,508 | |||||
751,923 | 722,849 | ||||||
Less accumulated depreciation and amortization | (230,965 | ) | (197,028 | ) | |||
Total premises and equipment, net | $ | 520,958 | $ | 525,821 |
2017 | 2016 | ||||||
Goodwill | $ | 654,952 | $ | 654,952 |
Gross Intangible Assets | Accumulated Amortization | Net Intangible Assets | |||||||||
2017 | |||||||||||
Core deposits | $ | 9,300 | $ | (5,256 | ) | $ | 4,044 | ||||
Customer relationships | 4,669 | (3,683 | ) | 986 | |||||||
Non-compete agreements | 74 | (31 | ) | 43 | |||||||
$ | 14,043 | $ | (8,970 | ) | $ | 5,073 | |||||
2016 | |||||||||||
Core deposits | $ | 9,300 | $ | (4,002 | ) | $ | 5,298 | ||||
Customer relationships | 6,102 | (4,692 | ) | 1,410 | |||||||
Non-compete agreements | 74 | (6 | ) | 68 | |||||||
$ | 15,476 | $ | (8,700 | ) | $ | 6,776 |
2018 | $ | 1,424 | |
2019 | 1,167 | ||
2020 | 918 | ||
2021 | 697 | ||
2022 | 481 | ||
Thereafter | 386 | ||
$ | 5,073 |
2017 | 2016 | ||||||
Non-interest-bearing demand deposits: | |||||||
Commercial and individual | $ | 10,412,882 | $ | 9,670,989 | |||
Correspondent banks | 222,648 | 280,751 | |||||
Public funds | 561,563 | 561,629 | |||||
Total non-interest-bearing demand deposits | 11,197,093 | 10,513,369 | |||||
Interest-bearing deposits: | |||||||
Private accounts: | |||||||
Savings and interest checking | 6,788,766 | 6,436,065 | |||||
Money market accounts | 7,624,471 | 7,486,431 | |||||
Time accounts of $100,000 or more | 453,668 | 460,028 | |||||
Time accounts under $100,000 | 324,636 | 338,714 | |||||
Total private accounts | 15,191,541 | 14,721,238 | |||||
Public funds: | |||||||
Savings and interest checking | 410,140 | 446,872 | |||||
Money market accounts | 59,008 | 113,669 | |||||
Time accounts of $100,000 or more | 14,301 | 15,748 | |||||
Time accounts under $100,000 | 306 | 679 | |||||
Total public funds | 483,755 | 576,968 | |||||
Total interest-bearing deposits | 15,675,296 | 15,298,206 | |||||
Total deposits | $ | 26,872,389 | $ | 25,811,575 |
2017 | 2016 | ||||||
Deposits from foreign sources (primarily Mexico) | $ | 716,339 | $ | 776,003 | |||
Deposits not covered by deposit insurance | 13,281,040 | 12,889,047 | |||||
Deposits from certain directors, executive officers and their affiliates | 196,686 | 199,969 |
2018 | $ | 643,058 | |
2019 | 149,853 | ||
2020 | — | ||
2021 | — | ||
2022 | — | ||
$ | 792,911 |
Due within 3 months or less | $ | 138,888 | |
Due after 3 months and within 6 months | 75,805 | ||
Due after 6 months and within 12 months | 163,756 | ||
Due after 12 months | 89,520 | ||
$ | 467,969 |
2017 | 2016 | ||||||
Commitments to extend credit | $ | 7,949,400 | $ | 7,476,420 | |||
Standby letters of credit | 236,595 | 239,482 | |||||
Deferred standby letter of credit fees | 1,843 | 2,054 |
2018 | $ | 27,990 | |
2019 | 28,790 | ||
2020 | 31,907 | ||
2021 | 30,855 | ||
2022 | 28,639 | ||
Thereafter | 347,187 | ||
$ | 495,368 |
Actual | Minimum Capital Required - Basel III Phase-In Schedule | Minimum Capital Required - Basel III Fully Phased-In | Required to be Considered Well Capitalized | ||||||||||||||||||||||||
Capital Amount | Ratio | Capital Amount | Ratio | Capital Amount | Ratio | Capital Amount | Ratio | ||||||||||||||||||||
2017 | |||||||||||||||||||||||||||
Common Equity Tier 1 to Risk-Weighted Assets | |||||||||||||||||||||||||||
Cullen/Frost | $ | 2,426,048 | 12.42 | % | $ | 1,123,430 | 5.75 | % | $ | 1,367,583 | 7.00 | % | $ | 1,269,965 | 6.50 | % | |||||||||||
Frost Bank | 2,518,999 | 12.92 | 1,120,663 | 5.75 | 1,364,214 | 7.00 | 1,266,836 | 6.50 | |||||||||||||||||||
Tier 1 Capital to Risk-Weighted Assets | |||||||||||||||||||||||||||
Cullen/Frost | 2,570,534 | 13.16 | 1,416,499 | 7.25 | 1,660,637 | 8.50 | 1,563,033 | 8.00 | |||||||||||||||||||
Frost Bank | 2,518,999 | 12.92 | 1,413,010 | 7.25 | 1,656,546 | 8.50 | 1,559,183 | 8.00 | |||||||||||||||||||
Total Capital to Risk-Weighted Assets | |||||||||||||||||||||||||||
Cullen/Frost | 2,959,326 | 15.15 | 1,807,257 | 9.25 | 2,051,375 | 10.50 | 1,953,792 | 10.00 | |||||||||||||||||||
Frost Bank | 2,674,791 | 13.72 | 1,802,805 | 9.25 | 2,046,321 | 10.50 | 1,948,979 | 10.00 | |||||||||||||||||||
Leverage Ratio | |||||||||||||||||||||||||||
Cullen/Frost | 2,570,534 | 8.46 | 1,215,227 | 4.00 | 1,215,186 | 4.00 | 1,519,034 | 5.00 | |||||||||||||||||||
Frost Bank | 2,518,999 | 8.30 | 1,214,295 | 4.00 | 1,214,254 | 4.00 | 1,517,869 | 5.00 | |||||||||||||||||||
2016 | |||||||||||||||||||||||||||
Common Equity Tier 1 to Risk-Weighted Assets | |||||||||||||||||||||||||||
Cullen/Frost | $ | 2,239,186 | 12.52 | % | $ | 916,360 | 5.125 | % | $ | 1,251,425 | 7.00 | % | $ | 1,162,213 | 6.50 | % | |||||||||||
Frost Bank | 2,296,480 | 12.88 | 913,460 | 5.125 | 1,247,463 | 7.00 | 1,158,535 | 6.50 | |||||||||||||||||||
Tier 1 Capital to Risk-Weighted Assets | |||||||||||||||||||||||||||
Cullen/Frost | 2,383,672 | 13.33 | 1,184,563 | 6.625 | 1,519,587 | 8.50 | 1,430,416 | 8.00 | |||||||||||||||||||
Frost Bank | 2,296,480 | 12.88 | 1,180,814 | 6.625 | 1,514,776 | 8.50 | 1,425,889 | 8.00 | |||||||||||||||||||
Total Capital to Risk-Weighted Assets | |||||||||||||||||||||||||||
Cullen/Frost | 2,669,717 | 14.93 | 1,542,168 | 8.625 | 1,877,137 | 10.50 | 1,788,020 | 10.00 | |||||||||||||||||||
Frost Bank | 2,449,525 | 13.74 | 1,537,286 | 8.625 | 1,871,194 | 10.50 | 1,782,361 | 10.00 | |||||||||||||||||||
Leverage Ratio | |||||||||||||||||||||||||||
Cullen/Frost | 2,383,672 | 8.14 | 1,171,682 | 4.00 | 1,171,573 | 4.00 | 1,464,602 | 5.00 | |||||||||||||||||||
Frost Bank | 2,296,480 | 7.85 | 1,170,249 | 4.00 | 1,170,141 | 4.00 | 1,462,812 | 5.00 |
2017 | 2016 | 2015 | |||||||||
Net Income | $ | 364,149 | $ | 304,261 | $ | 279,328 | |||||
Less: Preferred stock dividends | 8,063 | 8,063 | 8,063 | ||||||||
Net income available to common shareholders | 356,086 | 296,198 | 271,265 | ||||||||
Less: Earnings allocated to participating securities | 2,016 | 1,145 | 941 | ||||||||
Net earnings allocated to common stock | $ | 354,070 | $ | 295,053 | $ | 270,324 | |||||
Distributed earnings allocated to common stock | $ | 143,356 | $ | 134,374 | $ | 131,702 | |||||
Undistributed earnings allocated to common stock | 210,714 | 160,679 | 138,622 | ||||||||
Net earnings allocated to common stock | $ | 354,070 | $ | 295,053 | $ | 270,324 | |||||
Weighted-average shares outstanding for basic earnings per common share | 63,693,927 | 62,376,260 | 62,758,074 | ||||||||
Dilutive effect of stock compensation | 968,161 | 592,615 | 715,250 | ||||||||
Weighted-average shares outstanding for diluted earnings per common share | 64,662,088 | 62,968,875 | 63,473,324 |
2017 | 2016 | 2015 | |||||||||
Change in plan assets: | |||||||||||
Fair value of plan assets at beginning of year | $ | 157,214 | $ | 163,270 | $ | 168,185 | |||||
Actual return on plan assets | 23,518 | 5,174 | 1,567 | ||||||||
Employer contributions | 1,049 | 4,819 | 736 | ||||||||
Benefits paid | (13,331 | ) | (16,049 | ) | (7,218 | ) | |||||
Fair value of plan assets at end of year | 168,450 | 157,214 | 163,270 | ||||||||
Change in benefit obligation: | |||||||||||
Benefit obligation at beginning of year | 176,751 | 194,140 | 199,637 | ||||||||
Interest cost | 6,189 | 6,958 | 8,210 | ||||||||
Actuarial (gain) loss | 12,998 | (8,298 | ) | (6,489 | ) | ||||||
Benefits paid | (13,331 | ) | (16,049 | ) | (7,218 | ) | |||||
Benefit obligation at end of year | 182,607 | 176,751 | 194,140 | ||||||||
Funded status of the plan at end of year and accrued benefit (liability) recognized | $ | (14,157 | ) | $ | (19,537 | ) | $ | (30,870 | ) | ||
Accumulated benefit obligation at end of year | $ | 182,607 | $ | 176,751 | $ | 194,140 |
Retirement Plan | Restoration Plan | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Projected benefit obligation | $ | 166,191 | $ | 160,778 | $ | 16,416 | $ | 15,973 | |||||||
Accumulated benefit obligation | 166,191 | 160,778 | 16,416 | 15,973 | |||||||||||
Fair value of plan assets | 168,450 | 157,214 | — | — | |||||||||||
Funded status of the plan at end of year and accrued benefit (liability) recognized | 2,259 | (3,564 | ) | (16,416 | ) | (15,973 | ) |
2017 | 2016 | 2015 | |||||||||
Expected return on plan assets, net of expenses | $ | (11,117 | ) | $ | (11,558 | ) | $ | (11,932 | ) | ||
Interest cost on projected benefit obligation | 6,189 | 6,958 | 8,210 | ||||||||
Net amortization and deferral | 5,429 | 6,247 | 6,995 | ||||||||
SERP settlement costs | — | 1,027 | — | ||||||||
Net periodic expense (benefit) | $ | 501 | $ | 2,674 | $ | 3,273 |
2017 | 2016 | 2015 | |||||||||
Net actuarial gain (loss) | $ | 4,832 | $ | 9,188 | $ | 3,118 | |||||
Deferred tax (expense) benefit | (1,774 | ) | (3,216 | ) | (1,091 | ) | |||||
Other comprehensive income (loss), net of tax | $ | 3,058 | $ | 5,972 | $ | 2,027 |
2017 | 2016 | ||||||
Net actuarial loss | $ | (57,900 | ) | $ | (62,732 | ) | |
Deferred tax benefit | 12,160 | 21,956 | |||||
Amounts included in accumulated other comprehensive income/loss, net of tax | (37,718 | ) | (40,776 | ) |
2017 | 2016 | 2015 | ||||||
Benefit obligations: | ||||||||
Discount rate | 3.68 | % | 4.24 | % | 4.55 | % | ||
Net periodic benefit cost: | ||||||||
Discount rate | 4.24 | % | 4.55 | % | 4.20 | % | ||
Expected return on plan assets | 7.25 | 7.25 | 7.25 |
2017 | 2016 | ||||||
Level 1: | |||||||
Mutual funds | $ | 165,322 | $ | 153,765 | |||
Cash and cash equivalents | 3,128 | 3,208 | |||||
Level 2: | |||||||
U.S. government agency securities | — | 241 | |||||
Total fair value of plan assets | $ | 168,450 | $ | 157,214 |
2018 | $ | 9,395 | |
2019 | 9,837 | ||
2020 | 10,230 | ||
2021 | 10,524 | ||
2022 | 10,770 | ||
2023 through 2026 | 55,927 | ||
$ | 106,683 |
Director Deferred Stock Units Outstanding | Non-Vested Stock Awards/Stock Units Outstanding | Performance Stock Units Outstanding | Stock Options Outstanding | |||||||||||||||||||||||||
Number of Units | Weighted- Average Fair Value at Grant | Number of Shares/Units | Weighted- Average Fair Value at Grant | Number of Units | Weighted- Average Fair Value at Grant | Number of Shares | Weighted- Average Exercise Price | |||||||||||||||||||||
January 1, 2015 | 38,867 | $ | 59.39 | 175,490 | $ | 60.55 | — | $ | — | 5,029,882 | $ | 58.99 | ||||||||||||||||
Authorized | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Granted | 6,576 | 72.94 | 53,990 | 65.11 | — | — | 890,940 | 65.11 | ||||||||||||||||||||
Exercised/vested | — | — | (56,300 | ) | 48.00 | — | — | (287,326 | ) | 51.70 | ||||||||||||||||||
Forfeited/expired | — | — | — | — | — | — | (21,256 | ) | 66.72 | |||||||||||||||||||
December 31, 2015 | 45,443 | 61.35 | 173,180 | 66.05 | — | — | 5,612,240 | 60.30 | ||||||||||||||||||||
Authorized | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Granted | 8,216 | 63.25 | 132,800 | 76.07 | 43,860 | 69.70 | — | — | ||||||||||||||||||||
Exercised/vested | — | — | (49,130 | ) | 54.56 | — | — | (1,476,841 | ) | 53.40 | ||||||||||||||||||
Forfeited/expired | — | — | — | — | — | — | (46,371 | ) | 71.04 | |||||||||||||||||||
December 31, 2016 | 53,659 | 61.48 | 256,850 | 73.43 | 43,860 | 69.70 | 4,089,028 | 62.67 | ||||||||||||||||||||
Authorized | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Granted | 5,447 | 95.37 | 99,833 | 98.90 | 36,243 | 92.27 | — | — | ||||||||||||||||||||
Exercised/vested | (6,098 | ) | 62.29 | (39,740 | ) | 71.59 | — | — | (1,118,122 | ) | 60.59 | |||||||||||||||||
Forfeited/expired | — | — | (4,287 | ) | 79.52 | — | — | (53,764 | ) | 69.78 | ||||||||||||||||||
December 31, 2017 | 53,008 | $ | 64.87 | 312,656 | $ | 81.71 | 80,103 | $ | 79.91 | 2,917,142 | $ | 63.34 |
Options Outstanding | Options Exercisable | |||||||||||||||||||||||
Range of Exercise Prices | Number of Shares | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Life in Years | Number of Shares | Weighted- Average Exercise Price | |||||||||||||||||||
$ | 45.01 | to | $ | 50.00 | 294,230 | $ | 48.00 | 3.82 | 294,230 | $ | 48.00 | |||||||||||||
50.01 | to | 55.00 | 915,923 | 52.79 | 3.04 | 915,923 | 52.79 | |||||||||||||||||
65.01 | to | 70.00 | 711,477 | 65.11 | 7.49 | 294,507 | 65.11 | |||||||||||||||||
70.01 | to | 75.00 | 345,195 | 71.39 | 5.78 | 345,195 | 71.39 | |||||||||||||||||
75.01 | to | 80.00 | 650,317 | 78.94 | 6.58 | 445,131 | 78.94 | |||||||||||||||||
Total | 2,917,142 | 63.34 | 5.32 | 2,294,986 | 61.63 |
2017 | 2016 | 2015 | |||||||||
New shares issued from available authorized shares | 603,842 | — | — | ||||||||
Issued from available treasury stock | 547,078 | 1,509,121 | 337,056 | ||||||||
Total | 1,150,920 | 1,509,121 | 337,056 | ||||||||
Proceeds from stock option exercises | $ | 67,746 | $ | 78,866 | $ | 14,853 | |||||
Intrinsic value of stock options exercised | 38,275 | 30,935 | 5,766 | ||||||||
Fair value of stock awards/units vested | 4,578 | 3,679 | 3,728 |
2017 | 2016 | 2015 | |||||||||
Stock options | $ | 6,230 | $ | 8,235 | $ | 9,660 | |||||
Non-vested stock awards/stock units | 4,992 | 3,044 | 2,597 | ||||||||
Deferred stock-units | 519 | 520 | 480 | ||||||||
Performance stock units | 1,272 | — | — | ||||||||
Total | $ | 13,013 | $ | 11,799 | $ | 12,737 | |||||
Income tax benefit | $ | 4,555 | $ | 4,130 | $ | 4,458 |
Unrecognized Expense | Weighted-Average Number of Years for Expense Recognition | ||||
Stock options | $ | 5,575 | 1.4 | ||
Non-vested stock awards/stock units | 14,953 | 3.0 | |||
Performance stock units | 5,129 | 2.1 | |||
Total | $ | 25,657 |
2017 | 2016 | 2015 | |||||||||
Other non-interest income: | |||||||||||
Other | $ | 37,222 | $ | 41,144 | $ | 35,656 | |||||
Total | $ | 37,222 | $ | 41,144 | $ | 35,656 | |||||
Other non-interest expense: | |||||||||||
Advertising, promotions and public relations | $ | 29,337 | $ | 27,677 | $ | 28,858 | |||||
Professional services | 27,968 | 26,664 | 26,283 | ||||||||
Travel/meals and entertainment | 15,066 | 14,393 | 15,346 | ||||||||
Check card expense | 12,479 | 15,572 | 13,008 | ||||||||
Other | 90,439 | 94,682 | 82,066 | ||||||||
Total | $ | 175,289 | $ | 178,988 | $ | 165,561 |
2017 | 2016 | 2015 | |||||||||
Current income tax expense | $ | 58,707 | $ | 48,748 | $ | 59,530 | |||||
Deferred income tax expense (benefit) | (14,493 | ) | (11,598 | ) | (19,059 | ) | |||||
Income tax expense, as reported | $ | 44,214 | $ | 37,150 | $ | 40,471 | |||||
Effective tax rate | 10.8 | % | 10.9 | % | 12.7 | % |
2017 | 2016 | 2015 | |||||||||
Income tax expense computed at the statutory rate | $ | 142,927 | $ | 119,494 | $ | 111,930 | |||||
Effect of tax-exempt interest | (81,995 | ) | (75,696 | ) | (70,889 | ) | |||||
Bank owned life insurance income | (1,116 | ) | (1,260 | ) | (1,255 | ) | |||||
Net tax benefit from stock-based compensation | (9,062 | ) | (5,063 | ) | — | ||||||
Provisional deferred tax adjustment related to reduction in U.S. federal statutory income tax rate | (4,047 | ) | — | — | |||||||
Correction for prior year tax-exempt interest | (2,906 | ) | — | — | |||||||
Other | 413 | (325 | ) | 685 | |||||||
Income tax expense, as reported | $ | 44,214 | $ | 37,150 | $ | 40,471 |
2017 | 2016 | ||||||
Deferred tax assets: | |||||||
Allowance for loan losses | $ | 32,626 | $ | 53,566 | |||
Alternative minimum tax carryforward, no expiration date | 47,104 | 30,384 | |||||
Net actuarial loss on defined benefit post-retirement benefit plans | 12,160 | 21,956 | |||||
Stock-based compensation | 9,904 | 18,140 | |||||
Bonus accrual | 1,136 | 7,035 | |||||
Gain on sale of assets | 883 | 2,485 | |||||
Transaction costs | 875 | 1,587 | |||||
Other | 3,996 | 4,449 | |||||
Total gross deferred tax assets | 108,684 | 139,602 | |||||
Deferred tax liabilities: | |||||||
Premises and equipment | (20,236 | ) | (33,777 | ) | |||
Defined benefit post-retirement benefit plans | (9,012 | ) | (14,828 | ) | |||
Intangible assets | (9,014 | ) | (11,697 | ) | |||
Net unrealized gain on securities available for sale and transferred securities | (35,829 | ) | (8,699 | ) | |||
Leases | (1,646 | ) | (3,042 | ) | |||
Section 481(a) change in accounting method (tangible property) | — | (1,694 | ) | ||||
Prepaid expenses | (996 | ) | (1,743 | ) | |||
Other | (233 | ) | (436 | ) | |||
Total gross deferred tax liabilities | (76,966 | ) | (75,916 | ) | |||
Net deferred tax asset (liability) | $ | 31,718 | $ | 63,686 |
Before Tax Amount | Tax Expense, (Benefit) | Net of Tax Amount | |||||||||
2017 | |||||||||||
Securities available for sale and transferred securities: | |||||||||||
Change in net unrealized gain/loss during the period | $ | 157,016 | $ | 48,626 | $ | 108,390 | |||||
Change in net unrealized gain on securities transferred to held to maturity | (16,193 | ) | (5,668 | ) | (10,525 | ) | |||||
Reclassification adjustment for net (gains) losses included in net income | 4,941 | 1,729 | 3,212 | ||||||||
Total securities available for sale and transferred securities | 145,764 | 44,687 | 101,077 | ||||||||
Defined-benefit post-retirement benefit plans: | |||||||||||
Change in the net actuarial gain/loss | (597 | ) | (126 | ) | (471 | ) | |||||
Reclassification adjustment for net amortization of actuarial gain/loss included in net income as a component of net periodic cost (benefit) | 5,429 | 1,900 | 3,529 | ||||||||
Total defined-benefit post-retirement benefit plans | 4,832 | 1,774 | 3,058 | ||||||||
Total other comprehensive income (loss) | $ | 150,596 | $ | 46,461 | $ | 104,135 | |||||
2016 | |||||||||||
Securities available for sale and transferred securities: | |||||||||||
Change in net unrealized gain/loss during the period | $ | (175,061 | ) | $ | (61,271 | ) | $ | (113,790 | ) | ||
Change in net unrealized gain on securities transferred to held to maturity | (32,207 | ) | (11,272 | ) | (20,935 | ) | |||||
Reclassification adjustment for net (gains) losses included in net income | (14,975 | ) | (5,242 | ) | (9,733 | ) | |||||
Total securities available for sale and transferred securities | (222,243 | ) | (77,785 | ) | (144,458 | ) | |||||
Defined-benefit post-retirement benefit plans: | |||||||||||
Change in the net actuarial gain/loss | 1,914 | 670 | 1,244 | ||||||||
Reclassification adjustment for net amortization of actuarial gain/loss included in net income as a component of net periodic cost (benefit) | 7,274 | 2,546 | 4,728 | ||||||||
Total defined-benefit post-retirement benefit plans | 9,188 | 3,216 | 5,972 | ||||||||
Total other comprehensive income (loss) | $ | (213,055 | ) | $ | (74,569 | ) | $ | (138,486 | ) | ||
2015 | |||||||||||
Securities available for sale and transferred securities: | |||||||||||
Change in net unrealized gain/loss during the period | $ | (12,450 | ) | $ | (4,358 | ) | $ | (8,092 | ) | ||
Change in net unrealized gain on securities transferred to held to maturity | (33,601 | ) | (11,760 | ) | (21,841 | ) | |||||
Reclassification adjustment for net (gains) losses included in net income | (69 | ) | (24 | ) | (45 | ) | |||||
Total securities available for sale and transferred securities | (46,120 | ) | (16,142 | ) | (29,978 | ) | |||||
Defined-benefit post-retirement benefit plans: | |||||||||||
Change in the net actuarial gain/loss | (3,877 | ) | (1,357 | ) | (2,520 | ) | |||||
Reclassification adjustment for net amortization of actuarial gain/loss included in net income as a component of net periodic cost (benefit) | 6,995 | 2,448 | 4,547 | ||||||||
Total defined-benefit post-retirement benefit plans | 3,118 | 1,091 | 2,027 | ||||||||
Total other comprehensive income (loss) | $ | (43,002 | ) | $ | (15,051 | ) | $ | (27,951 | ) |
Securities Available For Sale | Defined Benefit Plans | Accumulated Other Comprehensive Income | |||||||||
Balance January 1, 2017 | $ | 16,153 | $ | (40,776 | ) | $ | (24,623 | ) | |||
Other comprehensive income (loss) before reclassification | 97,865 | (471 | ) | 97,394 | |||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 3,212 | 3,529 | 6,741 | ||||||||
Net other comprehensive income (loss) during period | 101,077 | 3,058 | 104,135 | ||||||||
Balance December 31, 2017 | $ | 117,230 | $ | (37,718 | ) | $ | 79,512 | ||||
Balance January 1, 2016 | $ | 160,611 | $ | (46,748 | ) | $ | 113,863 | ||||
Other comprehensive income (loss) before reclassification | (134,725 | ) | 1,244 | (133,481 | ) | ||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (9,733 | ) | 4,728 | (5,005 | ) | ||||||
Net other comprehensive income (loss) during period | (144,458 | ) | 5,972 | (138,486 | ) | ||||||
Balance December 31, 2016 | $ | 16,153 | $ | (40,776 | ) | $ | (24,623 | ) | |||
Balance January 1, 2015 | $ | 190,589 | $ | (48,775 | ) | $ | 141,814 | ||||
Other comprehensive income (loss) before reclassification | (29,933 | ) | (2,520 | ) | (32,453 | ) | |||||
Amounts reclassified from accumulated other comprehensive income (loss) | (45 | ) | 4,547 | 4,502 | |||||||
Net other comprehensive income (loss) during period | (29,978 | ) | 2,027 | (27,951 | ) | ||||||
Balance December 31, 2015 | $ | 160,611 | $ | (46,748 | ) | $ | 113,863 |
December 31, 2017 | December 31, 2016 | ||||||||||||||
Notional Amount | Estimated Fair Value | Notional Amount | Estimated Fair Value | ||||||||||||
Derivatives designated as hedges of fair value: | |||||||||||||||
Financial institution counterparties: | |||||||||||||||
Loan/lease interest rate swaps - assets | $ | 13,679 | $ | 242 | $ | 41,818 | $ | 368 | |||||||
Loan/lease interest rate swaps - liabilities | 11,147 | (593 | ) | 18,812 | (1,278 | ) | |||||||||
Non-hedging interest rate derivatives: | |||||||||||||||
Financial institution counterparties: | |||||||||||||||
Loan/lease interest rate swaps - assets | 430,449 | 1,418 | 206,745 | 2,649 | |||||||||||
Loan/lease interest rate swaps - liabilities | 541,496 | (12,820 | ) | 694,965 | (25,466 | ) | |||||||||
Loan/lease interest rate caps - assets | 114,619 | 480 | 85,966 | 575 | |||||||||||
Customer counterparties: | |||||||||||||||
Loan/lease interest rate swaps - assets | 541,496 | 17,882 | 694,965 | 25,467 | |||||||||||
Loan/lease interest rate swaps - liabilities | 430,449 | (4,861 | ) | 206,745 | (2,649 | ) | |||||||||
Loan/lease interest rate caps - liabilities | 114,619 | (480 | ) | 85,966 | (575 | ) |
Weighted-Average | |||||
Interest Rate Paid | Interest Rate Received | ||||
Interest rate swaps: | |||||
Fair value hedge loan/lease interest rate swaps | 3.09 | % | 1.47 | % | |
Non-hedging interest rate swaps - financial institution counterparties | 3.93 | 2.97 | |||
Non-hedging interest rate swaps - customer counterparties | 2.97 | 3.93 |
December 31, 2017 | December 31, 2016 | ||||||||||||||
Notional Units | Notional Amount | Estimated Fair Value | Notional Amount | Estimated Fair Value | |||||||||||
Financial institution counterparties: | |||||||||||||||
Oil - assets | Barrels | 253 | $ | 193 | 227 | $ | 206 | ||||||||
Oil - liabilities | Barrels | 2,731 | (13,448 | ) | 944 | (4,400 | ) | ||||||||
Natural gas - assets | MMBTUs | 5,927 | 1,399 | — | — | ||||||||||
Natural gas - liabilities | MMBTUs | 3,917 | (326 | ) | 1,299 | (1,357 | ) | ||||||||
Customer counterparties: | |||||||||||||||
Oil - assets | Barrels | 2,731 | 13,709 | 944 | 4,580 | ||||||||||
Oil - liabilities | Barrels | 253 | (187 | ) | 227 | (206 | ) | ||||||||
Natural gas - assets | MMBTUs | 3,917 | 340 | 1,299 | 1,393 | ||||||||||
Natural gas - liabilities | MMBTUs | 5,927 | (1,366 | ) | — | — |
December 31, 2017 | December 31, 2016 | ||||||||||||||
Notional Currency | Notional Amount | Estimated Fair Value | Notional Amount | Estimated Fair Value | |||||||||||
Financial institution counterparties: | |||||||||||||||
Forward contracts - assets | EUR | 4,014 | $ | 77 | — | $ | — | ||||||||
Forward contracts - assets | GBP | 127 | 1 | — | — | ||||||||||
Forward contracts - liabilities | EUR | 4,846 | (37 | ) | 870 | (9 | ) | ||||||||
Forward contracts - liabilities | CAD | 25,413 | (142 | ) | 2,214 | (21 | ) | ||||||||
Forward contracts - liabilities | GBP | 1,178 | (9 | ) | 419 | (3 | ) | ||||||||
Customer counterparties: | |||||||||||||||
Forward contracts - assets | EUR | 3,867 | 58 | — | — | ||||||||||
Forward contracts - assets | CAD | 25,282 | 279 | 2,205 | 29 | ||||||||||
Forward contracts - liabilities | EUR | 4,041 | (51 | ) | — | — | |||||||||
Forward contracts - liabilities | GBP | 127 | — | — | — |
2017 | 2016 | 2015 | |||||||||
Commercial loan/lease interest rate swaps: | |||||||||||
Amount of gain (loss) included in interest income on loans | $ | (726 | ) | $ | (1,362 | ) | $ | (1,796 | ) | ||
Amount of (gain) loss included in other non-interest expense | (14 | ) | (44 | ) | 11 |
2017 | 2016 | 2015 | |||||||||
Non-hedging interest rate derivatives: | |||||||||||
Other non-interest income | $ | 3,123 | $ | 2,883 | $ | 2,580 | |||||
Other non-interest expense | 1 | — | (43 | ) | |||||||
Non-hedging commodity derivatives: | |||||||||||
Other non-interest income | 440 | 421 | 208 | ||||||||
Non-hedging foreign currency derivatives: | |||||||||||
Other non-interest income | 300 | 30 | 78 |
Gross Amount Recognized | Gross Amount Offset | Net Amount Recognized | |||||||||
December 31, 2017 | |||||||||||
Financial assets: | |||||||||||
Derivatives: | |||||||||||
Loan/lease interest rate swaps and caps | $ | 2,140 | $ | — | $ | 2,140 | |||||
Commodity swaps and options | 1,592 | — | 1,592 | ||||||||
Foreign currency forward contracts | 78 | — | 78 | ||||||||
Total derivatives | 3,810 | — | 3,810 | ||||||||
Resell agreements | 9,642 | — | 9,642 | ||||||||
Total | $ | 13,452 | $ | — | $ | 13,452 | |||||
Financial liabilities: | |||||||||||
Derivatives: | |||||||||||
Loan/lease interest rate swaps | $ | 13,413 | $ | — | $ | 13,413 | |||||
Commodity swaps and options | 13,774 | — | 13,774 | ||||||||
Foreign currency forward contracts | 188 | — | 188 | ||||||||
Total derivatives | 27,375 | — | 27,375 | ||||||||
Repurchase agreements | 1,117,199 | — | 1,117,199 | ||||||||
Total | $ | 1,144,574 | $ | — | $ | 1,144,574 |
Gross Amounts Not Offset | |||||||||||||||
Net Amount Recognized | Financial Instruments | Collateral | Net Amount | ||||||||||||
December 31, 2017 | |||||||||||||||
Financial assets: | |||||||||||||||
Derivatives: | |||||||||||||||
Counterparty A | $ | 395 | $ | (395 | ) | $ | — | $ | — | ||||||
Counterparty B | 1,028 | (1,028 | ) | — | — | ||||||||||
Counterparty C | 55 | (55 | ) | — | — | ||||||||||
Counterparty D | — | — | — | — | |||||||||||
Other counterparties | 2,332 | (1,830 | ) | (387 | ) | 115 | |||||||||
Total derivatives | 3,810 | (3,308 | ) | (387 | ) | 115 | |||||||||
Resell agreements | 9,642 | — | (9,642 | ) | — | ||||||||||
Total | $ | 13,452 | $ | (3,308 | ) | $ | (10,029 | ) | $ | 115 | |||||
Financial liabilities: | |||||||||||||||
Derivatives: | |||||||||||||||
Counterparty A | $ | 7,397 | $ | (395 | ) | $ | (7,002 | ) | $ | — | |||||
Counterparty B | 4,466 | (1,028 | ) | (3,101 | ) | 337 | |||||||||
Counterparty C | 1,520 | (55 | ) | (1,450 | ) | 15 | |||||||||
Counterparty D | — | — | — | — | |||||||||||
Other counterparties | 13,992 | (1,830 | ) | (11,215 | ) | 947 | |||||||||
Total derivatives | 27,375 | (3,308 | ) | (22,768 | ) | 1,299 | |||||||||
Repurchase agreements | 1,117,199 | — | (1,117,199 | ) | — | ||||||||||
Total | $ | 1,144,574 | $ | (3,308 | ) | $ | (1,139,967 | ) | $ | 1,299 |
Gross Amount Recognized | Gross Amount Offset | Net Amount Recognized | |||||||||
December 31, 2016 | |||||||||||
Financial assets: | |||||||||||
Derivatives: | |||||||||||
Loan/lease interest rate swaps and caps | $ | 3,592 | $ | — | $ | 3,592 | |||||
Commodity swaps and options | 206 | — | 206 | ||||||||
Foreign currency forward contracts | — | — | — | ||||||||
Total derivatives | 3,798 | — | 3,798 | ||||||||
Resell agreements | 9,642 | — | 9,642 | ||||||||
Total | $ | 13,440 | $ | — | $ | 13,440 | |||||
Financial liabilities: | |||||||||||
Derivatives: | |||||||||||
Loan/lease interest rate swaps | $ | 26,744 | $ | — | $ | 26,744 | |||||
Commodity swaps and options | 5,757 | — | 5,757 | ||||||||
Foreign currency forward contracts | 33 | — | 33 | ||||||||
Total derivatives | 32,534 | — | 32,534 | ||||||||
Repurchase agreements | 963,317 | — | 963,317 | ||||||||
Total | $ | 995,851 | $ | — | $ | 995,851 |
Gross Amounts Not Offset | |||||||||||||||
Net Amount Recognized | Financial Instruments | Collateral | Net Amount | ||||||||||||
December 31, 2016 | |||||||||||||||
Financial assets: | |||||||||||||||
Derivatives: | |||||||||||||||
Counterparty A | $ | 687 | $ | (687 | ) | $ | — | $ | — | ||||||
Counterparty B | 223 | (223 | ) | — | — | ||||||||||
Counterparty C | 158 | (158 | ) | — | — | ||||||||||
Counterparty D | 1,820 | (1,820 | ) | — | — | ||||||||||
Other counterparties | 910 | (677 | ) | (64 | ) | 169 | |||||||||
Total derivatives | 3,798 | (3,565 | ) | (64 | ) | 169 | |||||||||
Resell agreements | 9,642 | — | (9,642 | ) | — | ||||||||||
Total | $ | 13,440 | $ | (3,565 | ) | $ | (9,706 | ) | $ | 169 | |||||
Financial liabilities: | |||||||||||||||
Derivatives: | |||||||||||||||
Counterparty A | $ | 11,233 | $ | (687 | ) | $ | (10,026 | ) | $ | 520 | |||||
Counterparty B | 6,867 | (223 | ) | (6,344 | ) | 300 | |||||||||
Counterparty C | 4,578 | (158 | ) | (4,415 | ) | 5 | |||||||||
Counterparty D | 7,706 | (1,820 | ) | (5,886 | ) | — | |||||||||
Other counterparties | 2,150 | (677 | ) | (676 | ) | 797 | |||||||||
Total derivatives | 32,534 | (3,565 | ) | (27,347 | ) | 1,622 | |||||||||
Repurchase agreements | 963,317 | — | (963,317 | ) | — | ||||||||||
Total | $ | 995,851 | $ | (3,565 | ) | $ | (990,664 | ) | $ | 1,622 |
Remaining Contractual Maturity of the Agreements | |||||||||||||||||||
Overnight and Continuous | Up to 30 Days | 30-90 Days | Greater than 90 Days | Total | |||||||||||||||
December 31, 2017 | |||||||||||||||||||
Repurchase agreements: | |||||||||||||||||||
U.S. Treasury | $ | 1,036,891 | $ | — | $ | — | $ | — | $ | 1,036,891 | |||||||||
Residential mortgage-backed securities | 80,308 | — | — | — | 80,308 | ||||||||||||||
Total borrowings | $ | 1,117,199 | $ | — | $ | — | $ | — | $ | 1,117,199 | |||||||||
Gross amount of recognized liabilities for repurchase agreements | $ | 1,117,199 | |||||||||||||||||
Amounts related to agreements not included in offsetting disclosures above | $ | — | |||||||||||||||||
December 31, 2016 | |||||||||||||||||||
Repurchase agreements: | |||||||||||||||||||
U.S. Treasury | $ | 841,475 | $ | — | $ | — | $ | — | $ | 841,475 | |||||||||
Residential mortgage-backed securities | 121,842 | — | — | — | 121,842 | ||||||||||||||
Total borrowings | $ | 963,317 | $ | — | $ | — | $ | — | $ | 963,317 | |||||||||
Gross amount of recognized liabilities for repurchase agreements | $ | 963,317 | |||||||||||||||||
Amounts related to agreements not included in offsetting disclosures above | $ | — |
• | Level 1 Inputs - Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. |
• | Level 2 Inputs - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by correlation or other means. |
• | Level 3 Inputs - Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. |
Level 1 Inputs | Level 2 Inputs | Level 3 Inputs | Total Fair Value | ||||||||||||
2017 | |||||||||||||||
Securities available for sale: | |||||||||||||||
U.S. Treasury | $ | 3,445,153 | $ | — | $ | — | $ | 3,445,153 | |||||||
Residential mortgage-backed securities | — | 665,086 | — | 665,086 | |||||||||||
States and political subdivisions | — | 6,336,209 | — | 6,336,209 | |||||||||||
Other | — | 42,561 | — | 42,561 | |||||||||||
Trading account securities: | |||||||||||||||
U.S. Treasury | 19,210 | — | — | 19,210 | |||||||||||
States and political subdivisions | — | 1,888 | — | 1,888 | |||||||||||
Derivative assets: | |||||||||||||||
Interest rate swaps, caps and floors | — | 20,022 | — | 20,022 | |||||||||||
Commodity swaps and options | — | 14,408 | 1,233 | 15,641 | |||||||||||
Foreign currency forward contracts | 415 | — | — | 415 | |||||||||||
Derivative liabilities: | |||||||||||||||
Interest rate swaps, caps and floors | — | 18,754 | — | 18,754 | |||||||||||
Commodity swaps and options | — | 15,327 | — | 15,327 | |||||||||||
Foreign currency forward contracts | 239 | — | — | 239 | |||||||||||
2016 | |||||||||||||||
Securities available for sale: | |||||||||||||||
U.S. Treasury | $ | 4,019,731 | $ | — | $ | — | $ | 4,019,731 | |||||||
Residential mortgage-backed securities | — | 785,167 | — | 785,167 | |||||||||||
States and political subdivisions | — | 5,355,885 | — | 5,355,885 | |||||||||||
Other | — | 42,494 | — | 42,494 | |||||||||||
Trading account securities: | |||||||||||||||
U.S. Treasury | 16,594 | — | — | 16,594 | |||||||||||
States and political subdivisions | — | 109 | — | 109 | |||||||||||
Derivative assets: | |||||||||||||||
Interest rate swaps, caps and floors | — | 29,059 | — | 29,059 | |||||||||||
Commodity swaps and options | — | 6,179 | — | 6,179 | |||||||||||
Foreign currency forward contracts | 29 | — | — | 29 | |||||||||||
Derivative liabilities: | |||||||||||||||
Interest rate swaps, caps and floors | — | 29,968 | — | 29,968 | |||||||||||
Commodity swaps and options | — | 5,963 | — | 5,963 | |||||||||||
Foreign currency forward contracts | 33 | — | — | 33 |
2017 | 2016 | 2015 | |||||||||
Carrying value of impaired loans before allocations | $ | 75,435 | $ | 33,626 | $ | 14,921 | |||||
Specific valuation allowance allocations | (19,533 | ) | (3,961 | ) | (2,765 | ) | |||||
Fair value | $ | 55,902 | $ | 29,665 | $ | 12,156 |
2017 | 2016 | 2015 | |||||||||
Foreclosed assets remeasured at initial recognition: | |||||||||||
Carrying value of foreclosed assets prior to remeasurement | $ | 279 | $ | 756 | $ | 1,102 | |||||
Charge-offs recognized in the allowance for loan losses | — | (3 | ) | (169 | ) | ||||||
Fair value | $ | 279 | $ | 753 | $ | 933 | |||||
Foreclosed assets remeasured subsequent to initial recognition: | |||||||||||
Carrying value of foreclosed assets prior to remeasurement | $ | 89 | $ | 492 | $ | 205 | |||||
Write-downs included in other non-interest expense | (16 | ) | (217 | ) | (36 | ) | |||||
Fair value | $ | 73 | $ | 275 | $ | 169 |
December 31, 2017 | December 31, 2016 | ||||||||||||||
Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | ||||||||||||
Financial assets: | |||||||||||||||
Level 2 inputs: | |||||||||||||||
Cash and cash equivalents | $ | 5,053,047 | $ | 5,053,047 | $ | 4,141,445 | $ | 4,141,445 | |||||||
Securities held to maturity | 1,432,098 | 1,455,791 | 2,250,460 | 2,262,747 | |||||||||||
Cash surrender value of life insurance policies | 180,477 | 180,477 | 177,884 | 177,884 | |||||||||||
Accrued interest receivable | 167,508 | 167,508 | 156,714 | 156,714 | |||||||||||
Level 3 inputs: | |||||||||||||||
Loans, net | 12,990,301 | 12,981,165 | 11,822,347 | 11,903,956 | |||||||||||
Financial liabilities: | |||||||||||||||
Level 2 inputs: | |||||||||||||||
Deposits | 26,872,389 | 26,866,676 | 25,811,575 | 25,812,039 | |||||||||||
Federal funds purchased and repurchase agreements | 1,147,824 | 1,147,824 | 976,992 | 976,992 | |||||||||||
Junior subordinated deferrable interest debentures | 136,184 | 137,115 | 136,127 | 137,115 | |||||||||||
Subordinated notes payable and other borrowings | 98,552 | 105,311 | 99,990 | 100,000 | |||||||||||
Accrued interest payable | 3,358 | 3,358 | 1,204 | 1,204 |
Banking | Frost Wealth Advisors | Non-Banks | Consolidated | ||||||||||||
2017 | |||||||||||||||
Net interest income (expense) | $ | 856,593 | $ | 17,644 | $ | (7,815 | ) | $ | 866,422 | ||||||
Provision for loan losses | 35,460 | — | — | 35,460 | |||||||||||
Non-interest income | 207,810 | 128,819 | (159 | ) | 336,470 | ||||||||||
Non-interest expense | 644,072 | 108,931 | 6,066 | 759,069 | |||||||||||
Income (loss) before income taxes | 384,871 | 37,532 | (14,040 | ) | 408,363 | ||||||||||
Income tax expense (benefit) | 37,837 | 13,137 | (6,760 | ) | 44,214 | ||||||||||
Net income (loss) | 347,034 | 24,395 | (7,280 | ) | 364,149 | ||||||||||
Preferred stock dividends | — | — | 8,063 | 8,063 | |||||||||||
Net income (loss) available to common shareholders | $ | 347,034 | $ | 24,395 | $ | (15,343 | ) | $ | 356,086 | ||||||
Revenues from (expenses to) external customers | $ | 1,064,403 | $ | 146,463 | $ | (7,974 | ) | $ | 1,202,892 | ||||||
Average assets (in millions) | $ | 30,391 | $ | 43 | $ | 16 | $ | 30,450 |
Banking | Frost Wealth Advisors | Non-Banks | Consolidated | ||||||||||||
2016 | |||||||||||||||
Net interest income (expense) | $ | 769,625 | $ | 11,335 | $ | (4,624 | ) | $ | 776,336 | ||||||
Provision for loan losses | 51,672 | 1 | — | 51,673 | |||||||||||
Non-interest income | 229,791 | 120,102 | (185 | ) | 349,708 | ||||||||||
Non-interest expense | 624,396 | 102,062 | 6,502 | 732,960 | |||||||||||
Income (loss) before income taxes | 323,348 | 29,374 | (11,311 | ) | 341,411 | ||||||||||
Income tax expense (benefit) | 33,683 | 10,281 | (6,814 | ) | 37,150 | ||||||||||
Net income (loss) | 289,665 | 19,093 | (4,497 | ) | 304,261 | ||||||||||
Preferred stock dividends | — | — | 8,063 | 8,063 | |||||||||||
Net income (loss) available to common shareholders | $ | 289,665 | $ | 19,093 | $ | (12,560 | ) | $ | 296,198 | ||||||
Revenues from (expenses to) external customers | $ | 999,416 | $ | 131,437 | $ | (4,809 | ) | $ | 1,126,044 | ||||||
Average assets (in millions) | $ | 28,795 | $ | 34 | $ | 3 | $ | 28,832 | |||||||
2015 | |||||||||||||||
Net interest income (expense) | $ | 732,671 | $ | 7,634 | $ | (3,673 | ) | $ | 736,632 | ||||||
Provision for loan losses | 51,848 | (3 | ) | — | 51,845 | ||||||||||
Non-interest income | 205,606 | 121,489 | 1,635 | 328,730 | |||||||||||
Non-interest expense | 589,394 | 98,405 | 5,919 | 693,718 | |||||||||||
Income (loss) before income taxes | 297,035 | 30,721 | (7,957 | ) | 319,799 | ||||||||||
Income tax expense (benefit) | 34,997 | 10,753 | (5,279 | ) | 40,471 | ||||||||||
Net income (loss) | 262,038 | 19,968 | (2,678 | ) | 279,328 | ||||||||||
Preferred stock dividends | — | — | 8,063 | 8,063 | |||||||||||
Net income (loss) available to common shareholders | $ | 262,038 | $ | 19,968 | $ | (10,741 | ) | $ | 271,265 | ||||||
Revenues from (expenses to) external customers | $ | 938,277 | $ | 129,123 | $ | (2,038 | ) | $ | 1,065,362 | ||||||
Average assets (in millions) | $ | 28,023 | $ | 36 | $ | 2 | $ | 28,061 |
December 31, | |||||||
2017 | 2016 | ||||||
Assets: | |||||||
Cash | $ | 9,301 | $ | 9,854 | |||
Resell agreements | 256,000 | 279,270 | |||||
Total cash and cash equivalents | 265,301 | 289,124 | |||||
Investment in subsidiaries | 3,274,921 | 2,949,346 | |||||
Accrued interest receivable and other assets | 3,006 | 5,799 | |||||
Total assets | $ | 3,543,228 | $ | 3,244,269 | |||
Liabilities: | |||||||
Junior subordinated deferrable interest debentures, net of unamortized issuance costs | $ | 136,184 | $ | 136,127 | |||
Subordinated notes, net of unamortized issuance costs | 98,552 | 99,990 | |||||
Accrued interest payable and other liabilities | 10,629 | 5,624 | |||||
Total liabilities | 245,365 | 241,741 | |||||
Shareholders’ Equity | 3,297,863 | 3,002,528 | |||||
Total liabilities and shareholders’ equity | $ | 3,543,228 | $ | 3,244,269 |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Income: | |||||||||||
Dividend income paid by Frost Bank | $ | 149,671 | $ | 141,377 | $ | 126,375 | |||||
Dividend income paid by non-banks | 915 | 895 | 1,830 | ||||||||
Interest and other income | 421 | 33 | 82 | ||||||||
Total income | 151,007 | 142,305 | 128,287 | ||||||||
Expenses: | |||||||||||
Interest expense | 7,815 | 4,624 | 3,673 | ||||||||
Salaries and employee benefits | 1,202 | 1,828 | 1,376 | ||||||||
Other | 6,373 | 5,933 | 5,727 | ||||||||
Total expenses | 15,390 | 12,385 | 10,776 | ||||||||
Income before income taxes and equity in undistributed earnings of subsidiaries | 135,617 | 129,920 | 117,511 | ||||||||
Income tax benefit | 7,092 | 7,015 | 6,062 | ||||||||
Equity in undistributed earnings of subsidiaries | 221,440 | 167,326 | 155,755 | ||||||||
Net income | 364,149 | 304,261 | 279,328 | ||||||||
Preferred stock dividends | 8,063 | 8,063 | 8,063 | ||||||||
Net income available to common shareholders | $ | 356,086 | $ | 296,198 | $ | 271,265 |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Operating Activities: | |||||||||||
Net income | $ | 364,149 | $ | 304,261 | $ | 279,328 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Equity in undistributed earnings of subsidiaries | (221,440 | ) | (167,326 | ) | (155,755 | ) | |||||
Stock-based compensation | 519 | 520 | 480 | ||||||||
Net tax benefit from stock-based compensation | 318 | 185 | 161 | ||||||||
Net change in other assets and other liabilities | 7,665 | (940 | ) | 2,460 | |||||||
Net cash from operating activities | 151,211 | 136,700 | 126,674 | ||||||||
Investing Activities: | |||||||||||
Redemption of investment in Frost Securities, Inc. | — | — | 216 | ||||||||
Net cash from investing activities | — | — | 216 | ||||||||
Financing Activities: | |||||||||||
Proceeds from issuance of subordinated notes | 98,434 | — | — | ||||||||
Principal payments on subordinated notes | (100,000 | ) | — | — | |||||||
Proceeds from stock option exercises | 67,746 | 78,866 | 14,853 | ||||||||
Proceeds from stock-based compensation activities of subsidiaries | 12,494 | 11,279 | 12,257 | ||||||||
Purchase of treasury stock | (101,473 | ) | (1,290 | ) | (101,237 | ) | |||||
Cash dividends paid on preferred stock | (8,063 | ) | (8,063 | ) | (8,063 | ) | |||||
Cash dividends paid on common stock | (144,172 | ) | (134,902 | ) | (132,161 | ) | |||||
Net cash from financing activities | (175,034 | ) | (54,110 | ) | (214,351 | ) | |||||
Net change in cash and cash equivalents | (23,823 | ) | 82,590 | (87,461 | ) | ||||||
Cash and cash equivalents at beginning of year | 289,124 | 206,534 | 293,995 | ||||||||
Cash and cash equivalents at end of year | $ | 265,301 | $ | 289,124 | $ | 206,534 |
Year Ended December 31, | |||||||||||||||||||||
2017 | 2016 | ||||||||||||||||||||
Average Balance | Interest Income/ Expense | Yield/ Cost | Average Balance | Interest Income/ Expense | Yield/ Cost | ||||||||||||||||
Assets: | |||||||||||||||||||||
Interest-bearing deposits | $ | 3,579,737 | $ | 41,608 | 1.16 | % | $ | 3,062,189 | $ | 16,103 | 0.53 | % | |||||||||
Federal funds sold and resell agreements | 73,140 | 936 | 1.28 | 42,361 | 272 | 0.64 | |||||||||||||||
Securities: | |||||||||||||||||||||
Taxable | 4,892,827 | 92,979 | 1.92 | 5,251,192 | 103,025 | 2.01 | |||||||||||||||
Tax-exempt | 7,353,279 | 391,730 | 5.37 | 6,806,448 | 369,335 | 5.57 | |||||||||||||||
Total securities | 12,246,106 | 484,709 | 3.99 | 12,057,640 | 472,360 | 4.02 | |||||||||||||||
Loans, net of unearned discount | 12,460,148 | 542,703 | 4.36 | 11,554,823 | 463,299 | 4.01 | |||||||||||||||
Total earning assets and average rate earned | 28,359,131 | 1,069,956 | 3.79 | 26,717,013 | 952,034 | 3.60 | |||||||||||||||
Cash and due from banks | 505,611 | 513,441 | |||||||||||||||||||
Allowance for loan losses | (153,505 | ) | (151,901 | ) | |||||||||||||||||
Premises and equipment, net | 522,625 | 562,875 | |||||||||||||||||||
Accrued interest receivable and other assets | 1,216,345 | 1,190,665 | |||||||||||||||||||
Total assets | $ | 30,450,207 | $ | 28,832,093 | |||||||||||||||||
Liabilities: | |||||||||||||||||||||
Non-interest-bearing demand deposits: | |||||||||||||||||||||
Commercial and individual | $ | 10,155,502 | $ | 9,215,962 | |||||||||||||||||
Correspondent banks | 245,759 | 310,445 | |||||||||||||||||||
Public funds | 418,165 | 507,912 | |||||||||||||||||||
Total non-interest-bearing demand deposits | 10,819,426 | 10,034,319 | |||||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||||
Private accounts: | |||||||||||||||||||||
Savings and interest checking | 6,376,855 | 1,303 | 0.02 | 5,745,385 | 1,054 | 0.02 | |||||||||||||||
Money market deposit accounts | 7,502,494 | 12,721 | 0.17 | 7,466,252 | 4,673 | 0.06 | |||||||||||||||
Time accounts | 775,940 | 1,764 | 0.23 | 811,102 | 1,331 | 0.16 | |||||||||||||||
Public funds | 430,203 | 1,400 | 0.33 | 454,786 | 190 | 0.04 | |||||||||||||||
Total interest-bearing deposits | 15,085,492 | 17,188 | 0.11 | 14,477,525 | 7,248 | 0.05 | |||||||||||||||
Total deposits | 25,904,918 | 24,511,844 | |||||||||||||||||||
Federal funds purchased and repurchase agreements | 978,571 | 1,522 | 0.16 | 770,942 | 204 | 0.03 | |||||||||||||||
Junior subordinated deferrable interest debentures | 136,157 | 3,955 | 2.90 | 136,100 | 3,281 | 2.41 | |||||||||||||||
Subordinated notes payable and other notes | 90,037 | 3,860 | 4.29 | 99,933 | 1,343 | 1.34 | |||||||||||||||
Federal Home Loan Bank advances | — | — | — | — | — | — | |||||||||||||||
Total interest-bearing liabilities and average rate paid | 16,290,257 | 26,525 | 0.16 | 15,484,500 | 12,076 | 0.08 | |||||||||||||||
Accrued interest payable and other liabilities | 167,260 | 254,378 | |||||||||||||||||||
Total liabilities | 27,276,943 | 25,773,197 | |||||||||||||||||||
Shareholders’ equity | 3,173,264 | 3,058,896 | |||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 30,450,207 | $ | 28,832,093 | |||||||||||||||||
Net interest income | $ | 1,043,431 | $ | 939,958 | |||||||||||||||||
Net interest spread | 3.63 | % | 3.52 | % | |||||||||||||||||
Net interest income to total average earning assets | 3.69 | % | 3.56 | % |
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||
2015 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||
Average Balance | Interest Income/ Expense | Yield/ Cost | Average Balance | Interest Income/ Expense | Yield/ Cost | Average Balance | Interest Income/ Expense | Yield/ Cost | Average Balance | Interest Income/ Expense | Yield/ Cost | |||||||||||||||||||||||||||||||
$ | 3,047,515 | $ | 8,123 | 0.27 | % | $ | 4,189,110 | $ | 10,725 | 0.26 | % | $ | 2,849,467 | $ | 7,284 | 0.26 | % | $ | 1,589,110 | $ | 4,300 | 0.27 | % | |||||||||||||||||||
24,695 | 107 | 0.43 | 19,683 | 83 | 0.42 | 17,259 | 82 | 0.48 | 25,364 | 104 | 0.41 | |||||||||||||||||||||||||||||||
5,438,973 | 112,601 | 2.11 | 4,439,993 | 93,087 | 2.14 | 5,276,574 | 97,873 | 1.90 | 6,496,224 | 132,432 | 2.10 | |||||||||||||||||||||||||||||||
6,175,925 | 340,417 | 5.59 | 4,929,665 | 271,543 | 5.58 | 3,618,347 | 206,442 | 5.75 | 2,448,191 | 150,807 | 6.68 | |||||||||||||||||||||||||||||||
11,614,898 | 453,018 | 3.97 | 9,369,658 | 364,630 | 3.96 | 8,894,921 | 304,315 | 3.48 | 8,944,415 | 283,239 | 3.31 | |||||||||||||||||||||||||||||||
11,267,402 | 439,651 | 3.90 | 10,299,025 | 447,036 | 4.34 | 9,229,574 | 421,114 | 4.56 | 8,456,818 | 407,284 | 4.82 | |||||||||||||||||||||||||||||||
25,954,510 | 900,899 | 3.50 | 23,877,476 | 822,474 | 3.47 | 20,991,221 | 732,795 | 3.52 | 19,015,707 | 694,927 | 3.73 | |||||||||||||||||||||||||||||||
531,534 | 554,439 | 559,361 | 573,023 | |||||||||||||||||||||||||||||||||||||||
(107,799 | ) | (97,932 | ) | (96,426 | ) | (108,073 | ) | |||||||||||||||||||||||||||||||||||
513,624 | 363,790 | 310,544 | 321,137 | |||||||||||||||||||||||||||||||||||||||
1,168,757 | 1,068,528 | 985,722 | 1,023,299 | |||||||||||||||||||||||||||||||||||||||
$ | 28,060,626 | $ | 25,766,301 | $ | 22,750,422 | $ | 20,825,093 | |||||||||||||||||||||||||||||||||||
$ | 9,334,604 | $ | 8,384,376 | $ | 6,967,933 | $ | 6,300,944 | |||||||||||||||||||||||||||||||||||
353,766 | 351,803 | 323,706 | 332,136 | |||||||||||||||||||||||||||||||||||||||
491,440 | 388,851 | 366,135 | 388,847 | |||||||||||||||||||||||||||||||||||||||
10,179,810 | 9,125,030 | 7,657,774 | 7,021,927 | |||||||||||||||||||||||||||||||||||||||
4,831,927 | 996 | 0.02 | 4,211,336 | 924 | 0.02 | 3,608,273 | 1,321 | 0.04 | 3,018,116 | 1,618 | 0.05 | |||||||||||||||||||||||||||||||
7,715,890 | 6,418 | 0.08 | 7,342,967 | 7,852 | 0.11 | 6,596,764 | 10,091 | 0.15 | 5,834,822 | 12,085 | 0.21 | |||||||||||||||||||||||||||||||
874,368 | 1,473 | 0.17 | 966,420 | 2,053 | 0.21 | 970,984 | 2,468 | 0.25 | 1,025,022 | 3,783 | 0.37 | |||||||||||||||||||||||||||||||
438,763 | 137 | 0.03 | 407,006 | 193 | 0.05 | 434,299 | 579 | 0.13 | 392,213 | 613 | 0.16 | |||||||||||||||||||||||||||||||
13,860,948 | 9,024 | 0.07 | 12,927,729 | 11,022 | 0.09 | 11,610,320 | 14,459 | 0.12 | 10,270,173 | 18,099 | 0.18 | |||||||||||||||||||||||||||||||
24,040,758 | 22,052,759 | 19,268,094 | 17,292,100 | |||||||||||||||||||||||||||||||||||||||
648,851 | 167 | 0.03 | 560,841 | 134 | 0.02 | 538,656 | 121 | 0.02 | 603,934 | 140 | 0.02 | |||||||||||||||||||||||||||||||
136,042 | 2,725 | 2.00 | 130,477 | 2,488 | 1.89 | 122,524 | 6,426 | 5.19 | 122,466 | 6,806 | 5.50 | |||||||||||||||||||||||||||||||
99,814 | 948 | 0.95 | 99,693 | 893 | 0.89 | 99,573 | 939 | 0.94 | 99,454 | 1,705 | 1.71 | |||||||||||||||||||||||||||||||
— | — | — | — | — | — | 1 | — | 6.00 | 16 | 1 | 6.00 | |||||||||||||||||||||||||||||||
14,745,655 | 12,864 | 0.09 | 13,718,740 | 14,537 | 0.11 | 12,371,074 | 21,945 | 0.18 | 11,096,043 | 26,751 | 0.24 | |||||||||||||||||||||||||||||||
239,969 | 210,305 | 266,533 | 334,378 | |||||||||||||||||||||||||||||||||||||||
25,165,434 | 23,054,075 | 20,295,381 | 18,452,348 | |||||||||||||||||||||||||||||||||||||||
2,895,192 | 2,712,226 | 2,455,041 | 2,372,745 | |||||||||||||||||||||||||||||||||||||||
$ | 28,060,626 | $ | 25,766,301 | $ | 22,750,422 | $ | 20,825,093 | |||||||||||||||||||||||||||||||||||
$ | 888,035 | $ | 807,937 | $ | 710,850 | $ | 668,176 | |||||||||||||||||||||||||||||||||||
3.41 | % | 3.36 | % | 3.34 | % | 3.49 | % | |||||||||||||||||||||||||||||||||||
3.45 | % | 3.41 | % | 3.41 | % | 3.59 | % |
(a) | The following documents are filed as part of this Annual Report on Form 10-K: |
1. | Consolidated Financial Statements. Reference is made to Part II, Item 8, of this Annual Report on Form 10-K. |
2. | Consolidated Financial Statement Schedules. These schedules are omitted as the required information is inapplicable or the information is presented in the consolidated financial statements or related notes. |
3. | Exhibits. The exhibits to this Annual Report on Form 10-K listed below have been included only with the copy of this report filed with the Securities and Exchange Commission. |
Incorporated by Reference | |||||||||||||
Exhibit Number | Exhibit Description | Filed Herewith | Form | File No. | Exhibit | Filing Date | |||||||
3.1 | 10-Q | 001-13221 | 3.1 | 7/26/2006 | |||||||||
3.2 | 8-K | 001-13221 | 3.2 | 1/28/2016 | |||||||||
3.3 | 8-A | 001-13221 | 3.3 | 2/15/2013 | |||||||||
4.1P* | Instruments Defining the Rights of Holders of Long-Term Debt | ||||||||||||
10.1+ | 10-K | 001-13221 | 10.1 | 3/31/1999 | |||||||||
10.2P+ | 1991 Thrift Incentive Stock Purchase Plan for Employees of Cullen/Frost Bankers, Inc. and its Affiliates | S-8 | 33-39478 | 4.4 | 3/18/1991 | ||||||||
10.3+ | 10-K | 001-13221 | 10.13 | 3/30/1995 | |||||||||
10.4+ | X | ||||||||||||
10.5+ | X | ||||||||||||
10.6+ | X | ||||||||||||
10.7+ | 10-K | 001-13221 | 10.11 | 3/28/2003 | |||||||||
10.8+ | 10-K | 001-13221 | 10.12 | 2/4/2005 | |||||||||
10.9+ | DEF 14A | 001-13221 | Annex A | 3/20/2013 | |||||||||
10.10+ | S-8 | 333-143397 | 4.4 | 5/31/2007 | |||||||||
10.11+ | DEF 14A | 001-13221 | Annex A | 3/23/2015 | |||||||||
10.12+ | 10-K | 011-13221 | 10.12 | 2/3/2017 | |||||||||
10.13 | X | ||||||||||||
10.14 | X | ||||||||||||
10.15 | X | ||||||||||||
21.1 | X | ||||||||||||
23.1 | X | ||||||||||||
24.1 | X | ||||||||||||
31.1 | X | ||||||||||||
31.2 | X | ||||||||||||
32.1++ | X | ||||||||||||
32.2++ | X | ||||||||||||
101 | Interactive Data File | X |
* | We agree to furnish to the SEC, upon request, copies of any such instruments. |
+ | Management contract or compensatory plan or arrangement. |
++ | This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section, and shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934. |
(b) | Exhibits - See exhibit index included in Item 15(a)3 of this Annual Report on Form 10-K. |
(c) | Financial Statement Schedules - See Item 15(a)2 of this Annual Report on Form 10-K. |
Date: | February 7, 2018 | CULLEN/FROST BANKERS, INC. | |
(Registrant) | |||
By: | /s/ JERRY SALINAS | ||
Jerry Salinas Group Executive Vice President and Chief Financial Officer |
Signature | Title | Date |
/s/ PHILLIP D. GREEN* | Chairman of the Board, Director and Chief Executive Officer (Principal Executive Officer) | February 7, 2018 |
Phillip D. Green | ||
/s/ JERRY SALINAS | Group Executive Vice President and Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) | February 7, 2018 |
Jerry Salinas | ||
/s/ R. DENNY ALEXANDER* | Director | February 7, 2018 |
R. Denny Alexander | ||
/s/ CARLOS ALVAREZ* | Director | February 7, 2018 |
Carlos Alvarez | ||
/s/ CHRIS AVERY* | Director | February 7, 2018 |
Chris Avery | ||
/s/ SAM DAWSON* | Director | February 7, 2018 |
Sam Dawson | ||
/s/ CRAWFORD H. EDWARDS* | Director | February 7, 2018 |
Crawford H. Edwards | ||
/s/ RUBEN M. ESCOBEDO* | Director | February 7, 2018 |
Ruben M. Escobedo | ||
/s/ PATRICK B. FROST* | Director and President of Frost Bank | February 7, 2018 |
Patrick B. Frost | ||
/s/ DAVID J. HAEMISEGGER* | Director | February 7, 2018 |
David J. Haemisegger | ||
/s/ KAREN E. JENNINGS* | Director | February 7, 2018 |
Karen E. Jennings | ||
/s/ RICHARD M. KLEBERG, III* | Director | February 7, 2018 |
Richard M. Kleberg, III | ||
/s/ CHARLES W. MATTHEWS* | Director | February 7, 2018 |
Charles W. Matthews | ||
/s/ IDA CLEMENT STEEN* | Director | February 7, 2018 |
Ida Clement Steen | ||
/s/ GRAHAM WESTON* | Director | February 7, 2018 |
Graham Weston | ||
/s/ HORACE WILKINS, JR.* | Director | February 7, 2018 |
Horace Wilkins, Jr. |
*By: /s/ JERRY SALINAS | Group Executive Vice President and Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) | February 7, 2018 |
Jerry Salinas As attorney-in-fact for the persons indicated |
Exhibit 10.4 | |
Change-In-Control Agreements | |
with Two Executive Officers | |
Form of Change-in-Control Agreements made with the following two Executive Officers of Cullen/Frost Bankers, Inc. | |
1. | Patrick B. Frost |
2. | Phillip D. Green |
All of the above agreements are substantially identical in all material respects, except as to the dates of the agreements and the parties thereto. | |
(a) | The Executive’s willful and continued failure to substantially perform his/her duties with the Company (other than any such failure resulting from Disability or occurring after issuance by the Executive of a Notice of Termination for Good Reason), after a written demand for substantial performance is delivered to the Executive that specifically identifies the manner in which the Company believes that the Executive has willfully failed to substantially perform his/her duties, and after the Executive has failed to resume substantial performance of his/her duties on a continuous basis within thirty (30) calendar days of receiving such demand; |
(b) | The Executive’s willfully engaging in conduct (other than conduct covered under (a) above) which is demonstrably and materially injurious to the Company, monetarily or otherwise; or |
(c) | The Executive’s having been convicted of a felony. |
(a) | any “person”(as such term is defined in Section 3(a)(9) of the Securities Exchange Act of 1934 (the “Exchange Act”) and as used in Sections 13(d)(3) and 14(d)(2) of the Exchange Act) is or becomes a “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 20% or more of the combined voting power of the Company’s then outstanding securities eligible to vote for |
(b) | the consummation of a merger, consolidation, statutory share exchange or similar form of corporate transaction involving the Company or any of its Subsidiaries that requires the approval of the Company’s stockholders, whether for such transaction or the issuance of securities in the transaction (a “Business Combination”), unless immediately following such Business Combination: (A) more than 60% of the total voting power of (x) the corporation resulting from such Business Combination (the “Surviving Corporation”), or (y) if applicable, the ultimate parent corporation that directly or indirectly has beneficial ownership of 100% of the voting securities eligible to elect directors of the Surviving Corporation (the “Parent Corporation”), is represented by Company Voting Securities that were outstanding immediately prior to such Business Combination (or, if applicable, is represented by shares into which such Company Voting Securities were converted pursuant to such Business Combination), and such voting power among (and only among) the holders thereof is in substantially the same proportion as the voting power of such Company Voting Securities among the holders thereof immediately prior to the Business Combination, (B) no person (other than any employee benefit plan (or related trust) sponsored or maintained by the Surviving Corporation or the Parent Corporation) is or becomes the beneficial owner, directly or indirectly, of 20% or more of the total voting power of the outstanding voting securities eligible to elect directors of the Parent Corporation (or, if there is no Parent Corporation, the Surviving Corporation) and (C) at least 50% of the members of the board of directors of the Parent Corporation (or, if there is no Parent Corporation, the Surviving Corporation) following the consummation of the Business Combination were incumbent Directors at the time of the Board’s approval of the execution of the initial agreement providing for such Business Combination; or |
(c) | during any period of two consecutive years, individuals who at the beginning of such period constitute the Board of Directors and any new director (other than a director designated by a person who has entered into an agreement with the Company to effect a transaction described in paragraph (a) or (b) of this section) whose election by the Board of Directors or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute a majority thereof; or |
(d) | the stockholders of the Company approve a plan of complete liquidation or dissolution of the Company or a sale of all or substantially all of the Company’s assets. |
(a) | The assignment of the Executive to duties materially inconsistent with the Executive’s authorities, duties, responsibilities, and status (including offices and reporting requirements) as an employee of the Company, or a reduction or alteration in the nature or status of the Executive’s authorities, duties, or responsibilities than those in effect immediately preceding the Change in Control; |
(b) | The Company’s requiring the Executive to be based at a location which is at least fifty (50) miles further from the current primary residence than is such residence from the Company’s current headquarters, except for required travel on the Company’s business to an extent substantially consistent with the Executive’s business obligations as of the Effective Date; |
(c) | A material change in the Executive’s Base Salary or bonus opportunity as in effect on the Effective Date or as the same shall be increased from time to time; |
(d) | A material reduction in the Executive’s level of participation in any of the Company’s short- and/or long-term incentive compensation plans, or employee benefit or retirement plans, policies, practices, or arrangements in which the Executive participates immediately preceding the Change in Control; provided, however, that reductions in the levels of participation in any such plans shall not be deemed to be “Good Reason” if the Executive’s reduced level of participation in each such program remains substantially consistent with |
(e) | The failure of the Company to obtain a satisfactory agreement from any successor to the Company to assume and agree to perform this Agreement, as contemplated in Article 10 herein; or |
(f) | Any termination of Executive’s employment by the Company that is not effected pursuant to a Notice of Termination. |
(a) | An involuntary termination of the Executive’s employment by the Company for reasons other than Cause within twenty-four (24) calendar months following a Change in Control of the Company pursuant to a Notice of Termination delivered to the Executive by the Company; |
(b) | A voluntary termination by the Executive for Good Reason within twenty-four (24) calendar months following a Change in Control of the Company pursuant to a Notice of Termination delivered to the Company by the Executive; or |
(c) | The Company or any successor company breaches any of the provisions of this Agreement. |
(a) | An amount equal to three (3) times the highest rate of the Executive’s annualized Base Salary in effect immediately preceding the Change in Control. |
(b) | An amount equal to three (3) times the Executive’s highest target bonus established for the year immediately preceding the Change in Control. |
(c) | An amount equal to the Executive’s unpaid Base Salary, a pro rata amount of the Executive’s Target Bonus for the year in which the termination occurs, accrued vacation pay, and earned but not taken vacation pay through the Effective Date of Termination. |
(d) | A continuation of the welfare benefits of health care, life and accidental death and dismemberment, and disability insurance coverage for three (3) full years after the Effective Date of Termination. These benefits shall be provided to the Executive at the same premium cost, and at the same coverage level, as in effect as of the Executive’s Effective Date of Termination. However, in the event the premium cost and/or level of coverage shall change for all employees of the Company, or for management employees with respect to supplemental benefits, the cost and/or coverage level, likewise, shall change for the Executive in a corresponding manner. |
(e) | All long-term incentive awards immediately vest. |
(a) | Any other payments or benefits received or to be received by the Executive in connection with a Change in Control of the Company or the Executive’s termination of employment (whether pursuant to the terms of this Agreement or any other plan, arrangement, or agreement with the Company, or with any Person whose actions result in a Change in Control of the Company or any Person affiliated with the Company or such Persons) shall be treated as “parachute payments” within the meaning of Section 280G(b)(2) of the Code, and all “excess parachute payments” within the meaning of Section 280G(b)(1) shall be treated as subject to the Excise Tax, unless in the opinion of tax counsel as supported by the Company’s independent auditors and acceptable to the Executive, such other payments |
(b) | The amount of the Total Payments which shall be treated as subject to the Excise Tax shall be equal to the lesser of: (i) the total amount of the Total Payments; or (ii) the amount of excess parachute payments within the meaning of Section 280G(b)(1) (after applying clause (a) above); and |
(c) | The value of any noncash benefits or any deferred payment or benefit shall be determined by the Company’s independent auditors in accordance with the principles of Sections 280G(d)(3) and (4) of the Code. |
(a) | Notwithstanding anything herein to the contrary, if (a) the Executive is a “specified employee” as determined pursuant to Section 409A of the Code as of the date of the Executive’s “separation from service” (within the meaning of Treas. Reg. 1.409A-1(h)) and if any Severance Benefits or other payment or benefit provided for in this Agreement or otherwise both (i) constitutes a “deferral of compensation” within the meaning of Section 409A of the Code and (ii) cannot be paid or provided in the manner otherwise provided without subjecting the Executive to “additional tax”, interest or penalties under Section 409A of the Code, then any such Severance Benefit or other payment or benefit that is payable during the first six months following the Executive’s “separation from service” shall be paid or provided to the Executive in a cash lump-sum on the first business day of the seventh calendar month following the month in which the Executive’s “separation from service” occurs. Any payment or benefit due upon a termination of the Executive’s employment that represents a “deferral of compensation” within the meaning of Section 409A shall only be paid or provided to the Executive upon a “separation from service”. |
(b) | Notwithstanding anything to the contrary in Section 3.3 of this Agreement or elsewhere, any payment or benefit under Section 3.3 or otherwise that is exempt from Section 409A pursuant to Treas. Reg. 1.409A-1(b)(9)(v)(A) or (C) shall be paid or provided to the Executive only to the extent that the expenses are not incurred, or the benefits are not provided, beyond the last day of the second taxable year of the Executive following the taxable year of the Executive in which the “separation from service” occurs; and provided further that such expenses are reimbursed no later than the last day of the third taxable year following the taxable year of the Executive in which the “separation from service” occurs. Except as otherwise expressly provided herein, to the extent any expense reimbursement or the provision of any in-kind benefit under this Agreement is determined to be subject to Section 409A of the Code, the amount of any such expenses eligible for reimbursement, or the provision of any in-kind benefit, in one calendar year shall not affect the expenses eligible for reimbursement in any other taxable year (except for any life-time or other aggregate limitation applicable to medical expenses), in no event shall any expenses be reimbursed after the last day of the calendar year following the calendar year in which the Executive incurred such expenses, and in no event shall any right to reimbursement or the provision of any in-kind benefit be subject to liquidation or exchange for another benefit. |
(c) | For the purposes of this Agreement, each payment made pursuant to Section 3.3 shall be deemed to be separate payments, amounts payable under Section 3.3 of this Agreement shall be deemed not to be a “deferral of compensation” subject to Section 409A of the Code to the extent provided in the exceptions in Treas. Reg. Sections 1.409A-1(b)(4) (“short-term deferrals”) and (b)(9) (“separation pay plans,” including the exception under subparagraph (iii)) and other applicable provisions of Treas. Reg. Section 1.409A-1 through A-6. |
Cullen/Frost Bankers, Inc. | Executive | ||
By: | |||
Its: | |||
Attest: |
Exhibit 10.5 | |
Change-In-Control Agreements | |
with Five Executive Officers | |
Form of Change-in-Control Agreements made with the following six Executive Officers of Cullen/Frost Bankers, Inc. | |
1. | Robert A. Berman |
2. | Paul H. Bracher |
3. | Gary C. McKnight |
4. | William L. Perotti |
5. | Jerry Salinas |
All of the above agreements are substantially identical in all material respects, except as to the dates of the agreements and the parties thereto. | |
(a) | The Executive’s willful and continued failure to substantially perform his/her duties with the Company (other than any such failure resulting from Disability or occurring after issuance by the Executive of a Notice of Termination for Good Reason), after a written demand for substantial performance is delivered to the Executive that specifically identifies the manner in which the Company believes that the Executive has willfully failed to substantially perform his/her duties, and after the Executive has failed to resume substantial performance of his/her duties on a continuous basis within thirty (30) calendar days of receiving such demand; |
(b) | The Executive’s willfully engaging in conduct (other than conduct covered under (a) above) which is demonstrably and materially injurious to the Company, monetarily or otherwise; or |
(c) | The Executive’s having been convicted of a felony. |
(a) | any “person”(as such term is defined in Section 3(a)(9) of the Securities Exchange Act of 1934 (the “Exchange Act”) and as used in Sections 13(d)(3) and 14(d)(2) of the Exchange Act) is or becomes a “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 20% or more of the combined voting power of the Company’s then outstanding securities eligible to vote for |
(b) | the consummation of a merger, consolidation, statutory share exchange or similar form of corporate transaction involving the Company or any of its Subsidiaries that requires the approval of the Company’s stockholders, whether for such transaction or the issuance of securities in the transaction (a “Business Combination”), unless immediately following such Business Combination: (A) more than 60% of the total voting power of (x) the corporation resulting from such Business Combination (the “Surviving Corporation”), or (y) if applicable, the ultimate parent corporation that directly or indirectly has beneficial ownership of 100% of the voting securities eligible to elect directors of the Surviving Corporation (the “Parent Corporation”), is represented by Company Voting Securities that were outstanding immediately prior to such Business Combination (or, if applicable, is represented by shares into which such Company Voting Securities were converted pursuant to such Business Combination), and such voting power among (and only among) the holders thereof is in substantially the same proportion as the voting power of such Company Voting Securities among the holders thereof immediately prior to the Business Combination, (B) no person (other than any employee benefit plan (or related trust) sponsored or maintained by the Surviving Corporation or the Parent Corporation) is or becomes the beneficial owner, directly or indirectly, of 20% or more of the total voting power of the outstanding voting securities eligible to elect directors of the Parent Corporation (or, if there is no Parent Corporation, the Surviving Corporation) and (C) at least 50% of the members of the board of directors of the Parent Corporation (or, if there is no Parent Corporation, the Surviving Corporation) following the consummation of the Business Combination were incumbent Directors at the time of the Board’s approval of the execution of the initial agreement providing for such Business Combination; or |
(c) | during any period of two consecutive years, individuals who at the beginning of such period constitute the Board of Directors and any new director (other than a director designated by a person who has entered into an agreement with the Company to effect a transaction described in paragraph (a) or (b) of this section) whose election by the Board of Directors or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute a majority thereof; or |
(d) | the stockholders of the Company approve a plan of complete liquidation or dissolution of the Company or a sale of all or substantially all of the Company’s assets. |
(a) | The assignment of the Executive to duties materially inconsistent with the Executive’s authorities, duties, responsibilities, and status (including offices and reporting requirements) as an employee of the Company, or a reduction or alteration in the nature or status of the Executive’s authorities, duties, or responsibilities than those in effect immediately preceding the Change in Control; |
(b) | The Company’s requiring the Executive to be based at a location which is at least fifty (50) miles further from the current primary residence than is such residence from the Company’s current headquarters, except for required travel on the Company’s business to an extent substantially consistent with the Executive’s business obligations as of the Effective Date; |
(c) | A material change in the Executive’s Base Salary or bonus opportunity as in effect on the Effective Date or as the same shall be increased from time to time; |
(d) | A material reduction in the Executive’s level of participation in any of the Company’s short- and/or long-term incentive compensation plans, or employee benefit or retirement plans, policies, practices, or arrangements in which the Executive participates immediately preceding the Change in Control; provided, however, that reductions in the levels of participation in any such plans shall not be deemed to be “Good Reason” if the Executive’s reduced level of participation in each such program remains substantially consistent with |
(e) | The failure of the Company to obtain a satisfactory agreement from any successor to the Company to assume and agree to perform this Agreement, as contemplated in Article 10 herein; or |
(f) | Any termination of Executive’s employment by the Company that is not effected pursuant to a Notice of Termination. |
(a) | An involuntary termination of the Executive’s employment by the Company for reasons other than Cause within twenty-four (24) calendar months following a Change in Control of the Company pursuant to a Notice of Termination delivered to the Executive by the Company; |
(b) | A voluntary termination by the Executive for Good Reason within twenty-four (24) calendar months following a Change in Control of the Company pursuant to a Notice of Termination delivered to the Company by the Executive; or |
(c) | The Company or any successor company breaches any of the provisions of this Agreement. |
(a) | An amount equal to two (2) times the highest rate of the Executive’s annualized Base Salary in effect immediately preceding the Change in Control. |
(b) | An amount equal to two (2) times the Executive’s highest target bonus established for the year immediately preceding the Change in Control. |
(c) | An amount equal to the Executive’s unpaid Base Salary, a pro rata amount of the Executive’s Target Bonus for the year in which the termination occurs, accrued vacation pay, and earned but not taken vacation pay through the Effective Date of Termination. |
(d) | A continuation of the welfare benefits of health care, life and accidental death and dismemberment, and disability insurance coverage for two (2) full years after the Effective Date of Termination. These benefits shall be provided to the Executive at the same premium cost, and at the same coverage level, as in effect as of the Executive’s Effective Date of Termination. However, in the event the premium cost and/or level of coverage shall change for all employees of the Company, or for management employees with respect to supplemental benefits, the cost and/or coverage level, likewise, shall change for the Executive in a corresponding manner. |
(e) | All long-term incentive awards immediately vest. |
(a) | Any other payments or benefits received or to be received by the Executive in connection with a Change in Control of the Company or the Executive’s termination of employment (whether pursuant to the terms of this Agreement or any other plan, arrangement, or agreement with the Company, or with any Person whose actions result in a Change in Control of the Company or any Person affiliated with the Company or such Persons) shall be treated as “parachute payments” within the meaning of Section 280G(b)(2) of the Code, and all “excess parachute payments” within the meaning of Section 280G(b)(1) shall be treated as subject to the Excise Tax, unless in the opinion of tax counsel as supported by the Company’s independent auditors and acceptable to the Executive, such other payments |
(b) | The amount of the Total Payments which shall be treated as subject to the Excise Tax shall be equal to the lesser of: (i) the total amount of the Total Payments; or (ii) the amount of excess parachute payments within the meaning of Section 280G(b)(1) (after applying clause (a) above); and |
(c) | The value of any noncash benefits or any deferred payment or benefit shall be determined by the Company’s independent auditors in accordance with the principles of Sections 280G(d)(3) and (4) of the Code. |
(a) | Notwithstanding anything herein to the contrary, if (a) the Executive is a “specified employee” as determined pursuant to Section 409A of the Code as of the date of the Executive’s “separation from service” (within the meaning of Treas. Reg. 1.409A-1(h)) and if any Severance Benefits or other payment or benefit provided for in this Agreement or otherwise both (i) constitutes a “deferral of compensation” within the meaning of Section 409A of the Code and (ii) cannot be paid or provided in the manner otherwise provided without subjecting the Executive to “additional tax”, interest or penalties under Section 409A of the Code, then any such Severance Benefit or other payment or benefit that is payable during the first six months following the Executive’s “separation from service” shall be paid or provided to the Executive in a cash lump-sum on the first business day of the seventh calendar month following the month in which the Executive’s “separation from service” occurs. Any payment or benefit due upon a termination of the Executive’s employment that represents a “deferral of compensation” within the meaning of Section 409A shall only be paid or provided to the Executive upon a “separation from service”. |
(b) | Notwithstanding anything to the contrary in Section 3.3 of this Agreement or elsewhere, any payment or benefit under Section 3.3 or otherwise that is exempt from Section 409A pursuant to Treas. Reg. 1.409A-1(b)(9)(v)(A) or (C) shall be paid or provided to the Executive only to the extent that the expenses are not incurred, or the benefits are not provided, beyond the last day of the second taxable year of the Executive following the taxable year of the Executive in which the “separation from service” occurs; and provided further that such expenses are reimbursed no later than the last day of the third taxable year following the taxable year of the Executive in which the “separation from service” occurs. Except as otherwise expressly provided herein, to the extent any expense reimbursement or the provision of any in-kind benefit under this Agreement is determined to be subject to Section 409A of the Code, the amount of any such expenses eligible for reimbursement, or the provision of any in-kind benefit, in one calendar year shall not affect the expenses eligible for reimbursement in any other taxable year (except for any life-time or other aggregate limitation applicable to medical expenses), in no event shall any expenses be reimbursed after the last day of the calendar year following the calendar year in which the Executive incurred such expenses, and in no event shall any right to reimbursement or the provision of any in-kind benefit be subject to liquidation or exchange for another benefit. |
(c) | For the purposes of this Agreement, each payment made pursuant to Section 3.3 shall be deemed to be separate payments, amounts payable under Section 3.3 of this Agreement shall be deemed not to be a “deferral of compensation” subject to Section 409A of the Code to the extent provided in the exceptions in Treas. Reg. Sections 1.409A-1(b)(4) (“short-term deferrals”) and (b)(9) (“separation pay plans,” including the exception under subparagraph (iii)) and other applicable provisions of Treas. Reg. Section 1.409A-1 through A-6. |
Cullen/Frost Bankers, Inc. | Executive | ||
By: | |||
Its: | |||
Attest: |
Exhibit 10.6 | |
Amendments to | |
Change-In-Control Agreements | |
with Seven Executive Officers | |
Form of Amendments to Change-in-Control Agreements made with the following eight Executive Officers of Cullen/Frost Bankers, Inc. | |
1. | Robert A. Berman |
2. | Paul H. Bracher |
3. | Patrick B. Frost |
4. | Phillip D. Green |
5. | Gary C. McKnight |
6. | William L. Perotti |
7. | Jerry Salinas |
All of the above amendments to agreements are substantially identical in all material respects, except as to the dates of the agreements and the parties thereto. | |
1. | A new Plan section 7.11 is hereby added to the Plan to provide as follows: |
7.1 | Hurricane Harvey Hardship Distribution |
(a) | On or after August 23, 2017 and no later than January 31, 2018, prior to a Member’s retirement or other termination of employment, a Member is entitled to receive a hardship distribution from the vested portion of his Account on account of an immediate and heavy financial need if the distribution is made to a Member whose: |
(1) | principal residence on August 23, 2017 was located in one of the Texas (or other state) counties identified for individual assistance by the Federal Emergency Management Agency (“FEMA”) because of the devastation caused by Hurricane Harvey (the “Counties”); |
(2) | place of employment was located in one of the Counties on August 23, 2017; or |
(3) | lineal ascendant or descendant, dependent or spouse had a principal residence or place of employment in one of the Counties on August 23, 2017. |
(b) | Notwithstanding the foregoing, a Member who receives a hardship distribution on or after August 23, 2017 and no later than January 31, 2018 because of the devastation caused by Hurricane Harvey is not subject to any post-hardship distribution contribution restrictions under any other plan maintained by the Employer. |
(c) | Notwithstanding the foregoing, a Member requesting a hardship withdrawal on or after August 23, 2017 and no later than January 31, 2018 because of the devastation caused by Hurricane Harvey is required, as soon as practicable after the hardship distribution is made, to provide evidence that the Committee or its delegate considers necessary to determine whether a hardship exists and the amount necessary to satisfy the hardship. |
(d) | All hardship distribution requests pursuant to this Plan section 7.10 shall be filed with the Committee, and shall be made on such withdrawal request form and in such manner as the Committee may prescribe. The minimum withdrawal amount shall be $500 or the balance of the Member’s Account, if smaller. Hardship distributions pursuant to this Plan section 7.10 shall be subject to and made in accordance with such rules and procedures as the Committee may prescribe. The value of the Member's funds |
2. | Except as amended above, the Plan as in effect prior to this amendment shall continue unchanged. |
Cullen/Frost Bankers, Inc. | |
Attest: | By: /s/ Phillip D. Green |
By: /s/ Annette Alonzo | Its: Chairman of the Board & CEO |
Its: Group Executive Vice President | Date: October, 27, 2017 |
1. | Plan section 6.8 is hereby amended to add the following new subsection (e) to the end thereof: |
(e) | Hurricane Harvey. |
(1) | Notwithstanding section 6.8(c), for hardship distributions made on or after August 23, 2017 and no later than January 31, 2018, a distribution under the Plan is hereby deemed to be on account of an immediate and heavy financial need if the distribution is made to a Participant whose: |
(A) | principal residence on August 23, 2017 was located in one of the Texas (or other state) counties identified for individual assistance by the Federal Emergency Management Agency (“FEMA”) because of the devastation caused by Hurricane Harvey (the “Counties”); |
(B) | place of employment was located in one of the Counties on August 23, 2017; or |
(C) | lineal ascendant or descendant, dependent or spouse had a principal residence or place of employment in one of the Counties on August 23, 2017. |
(2) | Notwithstanding section 6.8(c), a Participant who receives a hardship distribution on or after August 23, 2017 and no later than January 31, 2018 because of the devastation caused by Hurricane Harvey is not subject to any post-hardship distribution contribution restrictions under the Plan or any other Plan maintained by the Employer. |
(3) | Notwithstanding section 6.8(c), a Participant requesting a hardship withdrawal on or after August 23, 2017 and no later than January 31, 2018 because of the devastation caused by Hurricane Harvey is required, as soon as practicable after the hardship distribution is made, to provide evidence that the Committee or its delegate considers necessary to determine whether a hardship exists and the amount necessary to satisfy the hardship. |
2. | Except as amended above, the Plan as in effect prior to this amendment shall continue unchanged. |
Cullen/Frost Bankers, Inc. | |
Attest: | By: /s/ Phillip D. Green |
By: /s/ Annette Alonzo | Its: Chairman of the Board & CEO |
Its: Group Executive Vice President | Date: October, 27, 2017 |
(a) | Eligibility. The single lump-sum payment option described in subsection (c) below, as well as the immediate annuity option described in subsection (d) below, shall be available only to any Eligible Window Participant who makes a timely election during the Lump-Sum Window Period. The lump-sum payment described in subsection (c) or immediate annuity described in subsection (d) shall be calculated as of the Window Benefit Commencement Date, subject to the limitation described in subsection (g) below. |
(b) | Notice and Election Period. A formal notice describing the Lump-Sum Window and all related election rights shall be distributed to Eligible Window Participants during August 2017, as determined by the Committee. |
(c) | Lump-Sum Amount Option. An Eligible Window Participant may elect to receive a lump-sum payment of his entire accrued benefit under the Plan, determined as of the Window Benefit Commencement Date. In the event that a Participant receives such a lump-sum payment and is subsequently reemployed as an Eligible Employee, the Participant will have his Vesting Service and Credited Service restored but any benefit payable as of his subsequent termination of employment with the Sponsor and all Affiliates will, consistent with the terms of Plan section 5.5, be reduced by the Actuarial Equivalent value of the Lump-Sum Window benefit that was previously paid. |
(d) | Immediate Annuity Option. An Eligible Window Participant who has not reached his Vested Retirement Date or Early Retirement Date (as applicable) as of the Window Benefit Commencement Date, and, therefore, is not otherwise eligible under Article 4 to commence receiving benefits in the form of an immediate annuity, nevertheless may, in lieu of the lump-sum distribution option described in subsection (c) above, elect to commence receiving his benefit as of the Window Benefit Commencement Date in the form of an immediately payable annuity which provides payments under a Life Only Option as described in Plan section 4.9(c)(1) if the Eligible Window Participant is not married or as, a Joint and 50 Percent Contingent Benefit Option as described in Plan section 4.9(c)(3), or a Qualified Optional Survivor Annuity Option (Joint and 75 percent contingent benefit option) as described in Plan section 4.9(c)(7) if the Eligible Window Participant is married. Such immediately payable annuity shall be adjusted for time and form of payment as contemplated by Articles 4 and 5 of the Plan, respectively. |
(e) | Death after Election and Prior to Benefit Commencement. Notwithstanding anything to the contrary in this Article 4, in the case of an Eligible Window Participant who makes and files with the Committee representative a written election under subsection (b) above, on or before the Offer Closing Date, but who subsequently dies prior to receiving or commencing to receive distributions under this Plan section 4.18, such election shall be given full effect, in a manner determined by the Committee. In the case of an election by such a deceased Eligible Window Participant to receive a lump-sum distribution, such lump-sum payment shall be made to the Surviving Spouse if the deceased Eligible Window Participant was married, or to the Participant’s estate if the Eligible Window Participant was not married, at the time of death. The provisions of this subsection (e) shall apply only for purposes of distributions payable under this Plan section 4.18, and not for any other purpose under the Plan. |
(f) | Actuarial Factors Used to Calculate Lump-Sum Payments. The “applicable interest rate” and “applicable mortality table” shall have the meaning provided to such terms as described in Plan section 2.1(a), defining “Actuarial Equivalent,” for the calculation of lump-sum distributions under the Lump-Sum Window. |
(g) | Lump-Sum Window Offer Contingent on Aggregate Lump-Sum Payments not Exceeding $5,665,000. The lump-sum offer reflected in this Plan section 4.18 is conditioned on the Sponsor’s determination that any lump-sum benefit paid pursuant to this Lump-Sum Window offer will not result in the payment of lump-sum exceeding $5,665,000 in the aggregate. If lump-sum payments payable pursuant to this Lump-Sum Window would exceed $5,665,000, the Sponsor will pay lump-sum payments to each electing Eligible Window Participant who made a timely election during the Lump-Sum Window Period starting with the smallest lump sum payment first and proceeding to pay lump sum payments of a successively increasing dollar amount until the aggregate lump sum benefits paid pursuant to this Lump-Sum Window do not exceed $5,665,000. And the payment of any lump-sum benefit that would result in this Lump-Sum Window offer paying lump sum distributions in excess of $5,665,000 in the aggregate will be null and void, and the election by one or more such Participants to receive a lump-sum distribution will not be given effect. The administration of this limitation on the aggregate lump-sum payments that may be paid pursuant to this Lump-Sum Window will be administered on a uniform and nondiscriminatory basis to all similarly situated persons. |
(h) | Definitions. For purposes of this Plan section 4.18, the following definitions will apply: |
(1) | “Eligible Window Participant” means a Participant who (i) terminated employment from the Sponsor and all Affiliates prior to January 1, 2017, (ii) has not subsequently been rehired by the Sponsor or an Affiliate on or prior to the Window Benefit Commencement Date, (iii) has a vested accrued benefit in the Plan the Actuarial Equivalent of which as of the Window Benefit Commencement Date is not more than $40,000 (exclusive of any interest such Participant has in an annuity contract covering accrued benefits earned under the Cullen/Frost Superseded Plan and as further described in Appendix A), (iv) |
(2) | “Lump-Sum Window” means the opportunity described in this Plan section 4.18 for any Eligible Window Participant to make a timely election for the single lump-sum payment option described in subsection (c) above, or the immediate annuity option described in subsection (d) above, during the Lump-Sum Window Period. |
(3) | “Lump-Sum Window Period” means the period beginning after the formal notice referenced in subsection (b) above has been provided, and ending on the Offer Closing Date. |
(4) | “Offer Closing Date” means the latest permissible date on which an eligible Participant may elect to receive a lump-sum distribution or other payment under the provisions of this Plan section 4.18. Such date shall be on or around September 29, 2017, as determined by the Committee; provided, however, that the Committee may choose to permit minor extensions beyond such Offer Closing Date (e.g., to allow Participants to complete small errors or omissions in paperwork, or to allow for unexpected delays in the Lump-Sum Window election package delivery process); and further provided, however, that any such extensions shall be applied on a uniform and nondiscriminatory basis to all similarly situated persons. |
(5) | “Window Benefit Commencement Date” means November 1, 2017. |
2. | Except as amended above, the Plan as in effect prior to this amendment shall continue unchanged. |
Cullen/Frost Bankers, Inc. | |
Attest: | By: /s/ Phillip D. Green |
By: /s/ Annette Alonzo | Its: Chairman of the Board & CEO |
Its: Group Executive Vice President | Date: October, 27, 2017 |
Name of Subsidiary | State or Other Jurisdiction of Incorporation or Organization | Percentage of Voting Securities Owned by Cullen/Frost Bankers, Inc. | |
Cullen/Frost Capital Trust II | Delaware | 100% | |
WNB Capital Trust I | Delaware | 100% | |
Frost Bank | Texas | 100% | |
Main Plaza Corporation | Texas | 100% | |
Frost Insurance Agency, Inc. | Texas | 100% | |
Frost Brokerage Services, Inc. | Texas | 100% | |
Frost Investment Advisors, LLC | Delaware | 100% | |
Frost Investment Services, LLC | Delaware | 100% | |
Tri-Frost Corporation | Texas | 100% | |
Carton Service Corporation | Texas | 100% | |
Cullen BLP, Inc. | Texas | 100% |
1. | Registration Statement (Form S-8 No. 333-203755) pertaining to the 2015 Omnibus Incentive Plan, |
2. | Registration Statement (Form S-8 No. 333-143397) pertaining to the 2007 Outside Director Incentive Plan, |
3. | Registration Statements (Form S-8 No. 333-191964, No. 333-127341 and No. 333-158903) pertaining to the 2005 Omnibus Incentive Plan, |
4. | Registration Statements (Form S-8 No. 333-157236, No. 33-37500 and No.333-108321) pertaining to The 401(k) Stock Purchase Plan for Employees of Cullen/Frost Bankers, Inc. and its Affiliates, |
5. | Registration Statement (Form S-8 No. 33-39478) pertaining to the 1991 Thrift Incentive Stock Purchase Plan for Employees of Cullen/Frost Bankers, Inc. and its Affiliates, and |
6. | Registration Statement (Form S-3 No. 333-214987) of Cullen/Frost Bankers, Inc.; |
Signature | Title | Date |
/s/ PHILLIP D. GREEN | Chairman of the Board, Director and Chief Executive Officer (Principal Executive Officer) | January 24, 2018 |
Phillip D. Green | ||
/s/ JERRY SALINAS | Group Executive Vice President and Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) | January 24, 2018 |
Jerry Salinas | ||
/s/ R. DENNY ALEXANDER | Director | January 24, 2018 |
R. Denny Alexander | ||
/s/ CARLOS ALVAREZ | Director | January 24, 2018 |
Carlos Alvarez | ||
/s/ CHRIS AVERY | Director | January 24, 2018 |
Chris Avery | ||
/s/ SAM DAWSON | Director | January 24, 2018 |
Sam Dawson | ||
/s/ CRAWFORD H. EDWARDS | Director | January 24, 2018 |
Crawford H. Edwards | ||
/s/ RUBEN M. ESCOBEDO | Director | January 24, 2018 |
Ruben M. Escobedo | ||
/s/ PATRICK B. FROST | Director and President of Frost Bank | January 24, 2018 |
Patrick B. Frost | ||
/s/ DAVID J. HAEMISEGGER | Director | January 24, 2018 |
David J. Haemisegger | ||
/s/ KAREN E. JENNINGS | Director | January 24, 2018 |
Karen E. Jennings | ||
/s/ RICHARD M. KLEBERG, III | Director | January 24, 2018 |
Richard M. Kleberg, III | ||
/s/ CHARLES W. MATTHEWS | Director | January 24, 2018 |
Charles W. Matthews | ||
/s/ IDA CLEMENT STEEN | Director | January 24, 2018 |
Ida Clement Steen | ||
/s/ GRAHAM WESTON | Director | January 24, 2018 |
Graham Weston | ||
/s/ HORACE WILKINS, JR | Director | January 24, 2018 |
Horace Wilkins, Jr. |
1. | I have reviewed this Annual Report on Form 10-K of Cullen/Frost Bankers, 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 registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Phillip D. Green |
Phillip D. Green |
Chief Executive Officer |
1. | I have reviewed this Annual Report on Form 10-K of Cullen/Frost Bankers, 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 registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Jerry Salinas |
Jerry Salinas |
Group Executive Vice President and Chief Financial Officer |
/s/ Phillip D. Green | February 7, 2018 | |
Phillip D. Green |
/s/ Jerry Salinas | February 7, 2018 | |
Jerry Salinas |
GA3QI^S'^P9:7]OK?PP_X)
MSSZS+I/Q1^/,-G>+=^'?'?[?NM>'+N-M.T6006FNZ/\ LF^&M5FT?3+J6TB^
M+>K:UJVDSZ3<@#O$'[37[2?_ 5>UO6/A7_P3T\7>*/V=?V']/U*[\-_%[_@
MI1'HTECXY^,"6=Q)8^*/A_\ \$]]%\06:QW@#)#SX&=56:'SX)H?-B+IYL,L>[?&ZC^O:OY>?^#1+PG\
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M4 %%%% !2$A1DG _F3P !U))X ')/ &:\7^/O[1/P2_9<^&>M_]H#XE>&/
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M#UHFA-K7\OO_ :5_M5_!OX"_P#!3'3OAC\8?"7@VZO_ -I#P??_ Q^"OQ/
M\065M=Z_\+/BV\IU+2]#\*:K=K<-X>M?C1I<%[\/]:DTQ+?4]
*OB3X:_:?\ ^"@/Q%TW]JK]I'PM
MJ4FN_"_PA9Z1>Z'^R=^REJ,DLDBP?LX?!G6+K48[_P ;::'33[G]HWXK2^)_
MC3KJV4=SH-Y\.-&NCX2MOU "C &/YD^I/4D]RXEO)M1DG\0_LY_!S6)GU&YW_:+]
MY;_P7/(][<>9()[IF,\N]][MN.0#ZHM-0L;^""ZL;NWO;:YABN;>XLYHKN">
MWF0/#/#+;/*DL,J,'BE1FCD4AD8@@G\FO^"P'_!7SX'_ /!(?X Z'\4OB+X<
MU;XE_$OXDZQJGAGX*_!G0]2@\.W_ ([UK0[&VU'Q#J>L>);ZQU&'PMX)\*VM
M_I?_ D7B"'1]>U".^UO0M+TO0]0NM29[3V+4_\ @DM_P32U-Q(O[#O[-&BR
M^;/*TOA+X6>'O!$LHN2&EMYY/!L.@/<6)<*Z:=.TEA#(JR0VT;JK#^6__@YA
M_P"""^M^*?@;\&?CQ_P3V^#/B[Q1<_ R[\
IK5351I3YOB_YA8=8U!LKLQ+5935Z=94
M!++C,*8:KB)Q+YAQP_-B5R?UB!O+.(R6D<\ *"Q/JBKCIK.L6ZK0ZU+!9;IN
M6(1UAJ;8.V@W5
Document and Entity Information - USD ($) $ in Billions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Jan. 30, 2018 |
Jun. 30, 2017 |
|
Document And Entity Information [Abstract] | |||
Entity Registrant Name | CULLEN/FROST BANKERS, INC. | ||
Trading Symbol | CFR | ||
Entity Central Index Key | 0000039263 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 63,682,137 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 5.8 |
Consolidated Balance Sheets (Parenthetical) - USD ($) |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 6,000,000 | 6,000,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 210,000,000 | 210,000,000 |
Common stock, shares issued | 64,236,306 | 63,632,464 |
Treasury stock, shares | 760,720 | 158,243 |
Series A Preferred Stock [Member] | ||
Series A Preferred Stock, Liquidation preference value | $ 25 | $ 25 |
Consolidated Statement of Changes in Shareholders' Equity (Parenthetical) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Stock option exercises/deferred stock unit conversions, shares | 1,150,920 | 1,509,121 | 321,266 |
Non-vested stock awards, shares | 0 | 0 | 15,790 |
Purchase of treasury stock, shares | 1,149,555 | 17,233 | 1,504,146 |
Approximate cash dividends declared on preferred stock, per share | $ 1.34 | $ 1.34 | $ 1.34 |
Cash dividends - common stock, per share | $ 2.25 | $ 2.15 | $ 2.10 |
Summary of Significant Accounting Policies |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Nature of Operations. Cullen/Frost Bankers, Inc. (“Cullen/Frost”) is a financial holding company and a bank holding company headquartered in San Antonio, Texas that provides, through its subsidiaries, a broad array of products and services throughout numerous Texas markets. The terms “Cullen/Frost,” “the Corporation,” “we,” “us” and “our” mean Cullen/Frost Bankers, Inc. and its subsidiaries, when appropriate. In addition to general commercial and consumer banking, other products and services offered include trust and investment management, insurance, brokerage, mutual funds, leasing, treasury management, capital markets advisory and item processing. Basis of Presentation. The consolidated financial statements include the accounts of Cullen/Frost and all other entities in which Cullen/Frost has a controlling financial interest. All significant intercompany balances and transactions have been eliminated in consolidation. The accounting and financial reporting policies we follow conform, in all material respects, to accounting principles generally accepted in the United States and to general practices within the financial services industry. We determine whether we have a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity (“VIE”) under accounting principles generally accepted in the United States. Voting interest entities are entities in which the total equity investment at risk is sufficient to enable the entity to finance itself independently and provides the equity holders with the obligation to absorb losses, the right to receive residual returns and the right to make decisions about the entity’s activities. We consolidate voting interest entities in which we have all, or at least a majority of, the voting interest. As defined in applicable accounting standards, VIEs are entities that lack one or more of the characteristics of a voting interest entity. A controlling financial interest in a VIE is present when an enterprise has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and an obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. The enterprise with a controlling financial interest, known as the primary beneficiary, consolidates the VIE. Our wholly owned subsidiaries Cullen/Frost Capital Trust II and WNB Capital Trust I are VIEs for which we are not the primary beneficiary. Accordingly, the accounts of these trusts are not included in our consolidated financial statements. We have evaluated subsequent events for potential recognition and/or disclosure through the date these consolidated financial statements were issued. All acquisitions during the reported periods were accounted for using the purchase method. Accordingly, the operating results of the acquired companies are included with our results of operations since their respective dates of acquisition. Use of Estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. The allowance for loan losses and the fair values of financial instruments and the status of contingencies are particularly subject to change. Concentrations and Restrictions on Cash and Cash Equivalents. We maintain deposits with other financial institutions in amounts that exceed federal deposit insurance coverage. Furthermore, federal funds sold are essentially uncollateralized loans to other financial institutions. Management regularly evaluates the credit risk associated with the counterparties to these transactions and believes that we are not exposed to any significant credit risks on cash and cash equivalents. We were required to have $179.6 million and $176.6 million of cash on hand or on deposit with the Federal Reserve Bank to meet regulatory reserve and clearing requirements at December 31, 2017 and 2016. These deposits with the Federal Reserve Bank do not earn interest. Additionally, as of December 31, 2017 and 2016, we had $19.6 million and $14.7 million in cash collateral on deposit with other financial institution counterparties to interest rate swap transactions. Cash Flow Reporting. Cash and cash equivalents include cash, deposits with other financial institutions that have an initial maturity of less than 90 days when acquired by us, federal funds sold and resell agreements. Net cash flows are reported for loans, deposit transactions and short-term borrowings. Additional cash flow information was as follows:
Repurchase/Resell Agreements. We purchase certain securities under agreements to resell. The amounts advanced under these agreements represent short-term loans and are reflected as assets in the accompanying consolidated balance sheets. The securities underlying these agreements are book-entry securities. We also sell certain securities under agreements to repurchase. The agreements are treated as collateralized financing transactions and the obligations to repurchase securities sold are reflected as a liability in the accompanying consolidated balance sheets. The dollar amount of the securities underlying the agreements remain in the asset accounts. Securities. Securities are classified as held to maturity and carried at amortized cost when management has the positive intent and ability to hold them until maturity. Securities to be held for indefinite periods of time are classified as available for sale and carried at fair value, with the unrealized holding gains and losses reported as a component of other comprehensive income, net of tax. Securities held for resale in anticipation of short-term market movements are classified as trading and are carried at fair value, with changes in unrealized holding gains and losses included in income. Management determines the appropriate classification of securities at the time of purchase. Securities with limited marketability, such as stock in the Federal Reserve Bank and the Federal Home Loan Bank, are carried at cost. Purchase premiums and discounts on securities are amortized or accreted to interest income over the expected lives of the securities using the interest method with a constant effective yield. Expectations related to prepayments are considered in the calculation of the constant effective yield necessary to apply the interest method for mortgage-backed securities and certain pools of municipal securities. Premium amortization and discount accretion for mortgage-backed securities and pools of municipal securities is adjusted for changes in prepayment estimates, as applicable. Realized gains and losses are derived from the amortized cost of the security sold. Declines in the fair value of held-to-maturity and available-for-sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. In estimating other-than-temporary impairment losses, management considers, among other things, (i) the length of time and the extent to which the fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer and (iii) the intent and our ability to retain our investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Loans. Loans are reported at the principal balance outstanding net of unearned discounts. Interest income on loans is reported on the level-yield method and includes amortization of deferred loan fees and costs over the loan term. Net loan commitment fees or costs for commitment periods greater than one year are deferred and amortized into fee income or other expense on a straight-line basis over the commitment period. Income on direct financing leases is recognized on a basis that achieves a constant periodic rate of return on the outstanding investment. Further information regarding our accounting policies related to past due loans, non-accrual loans, impaired loans and troubled-debt restructurings is presented in Note 3 - Loans. Loans Acquired Through Transfer. Loans acquired through the completion of a transfer, including loans acquired in a business combination, are initially recorded at fair value. Acquired loans that have evidence of deterioration of credit quality since origination and for which it is probable, at acquisition, that we will be unable to collect all contractually required payments receivable are considered to be purchased credit-impaired. For purchased credit-impaired loans, the difference between the undiscounted cash flows expected at acquisition and the recorded fair value of the loan, or the “accretable yield,” is recognized as interest income on a level-yield method over the life of the loan. Contractually required payments for interest and principal that exceed the undiscounted cash flows expected at acquisition, or the “nonaccretable difference,” are not recognized as a yield adjustment or as a loss accrual or a valuation allowance. Increases in expected cash flows subsequent to the initial investment are recognized prospectively through adjustment of the yield on the loan over its remaining life. Decreases in expected cash flows are recognized as impairment. Valuation allowances on these impaired loans reflect only losses incurred after the acquisition (meaning the present value of all cash flows expected at acquisition that ultimately are not to be received). For acquired loans that are not deemed to be purchased credit-impaired at acquisition, the difference between the initial fair value and the unpaid principal balance is recognized as interest income on a level-yield basis over the lives of the related loans. Subsequent to acquisition, any valuation allowance on these loans reflects only the portion of probable losses that exceeds any unaccreted purchase discounts on these loans as of the measurement date. Allowance for Loan Losses. The allowance for loan losses is a reserve established through a provision for loan losses charged to expense, which represents management’s best estimate of inherent losses that have been incurred within the existing portfolio of loans. The allowance, in the judgment of management, is necessary to reserve for estimated loan losses inherent in the loan portfolio. The allowance for loan losses includes allowance allocations calculated in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 310, “Receivables” and allowance allocations calculated in accordance with ASC Topic 450, “Contingencies.” Further information regarding our policies and methodology used to estimate the allowance for loan losses is presented in Note 3 - Loans. Premises and Equipment. Land is carried at cost. Building and improvements, and furniture and equipment are carried at cost, less accumulated depreciation, computed principally by the straight-line method based on the estimated useful lives of the related property. Leasehold improvements are generally depreciated over the lesser of the term of the respective leases or the estimated useful lives of the improvements. Foreclosed Assets. Assets acquired through or instead of loan foreclosure are held for sale and are initially recorded at fair value less estimated selling costs when acquired, establishing a new cost basis. Costs after acquisition are generally expensed. If the fair value of the asset declines, a write-down is recorded through expense. The valuation of foreclosed assets is subjective in nature and may be adjusted in the future because of changes in economic conditions. Foreclosed assets are included in other assets in the accompanying consolidated balance sheets and totaled $2.1 million and $2.4 million at December 31, 2017 and 2016. Goodwill. Goodwill represents the excess of the cost of businesses acquired over the fair value of the net assets acquired. Goodwill is assigned to reporting units and tested for impairment at least annually on October 1st, or on an interim basis if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying value. See Note 5 - Goodwill and Other Intangible Assets. Intangibles and Other Long-Lived Assets. Intangible assets are acquired assets that lack physical substance but can be distinguished from goodwill because of contractual or other legal rights or because the asset is capable of being sold or exchanged either on its own or in combination with a related contract, asset, or liability. Our intangible assets relate to core deposits, non-compete agreements and customer relationships. Intangible assets with definite useful lives are amortized on an accelerated basis over their estimated life. Intangible assets with indefinite useful lives are not amortized until their lives are determined to be definite. Intangible assets, premises and equipment and other long-lived assets are tested for impairment whenever events or changes in circumstances indicate the carrying amount of the assets may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value. See Note 5 - Goodwill and Other Intangible Assets. Insurance Commissions and Fees. Commission revenue is recognized as of the effective date of the insurance policy. We also receive contingent commissions from insurance companies as additional incentive for achieving specified premium volume goals and/or the loss experience of the insurance placed by us. Contingent commissions from insurance companies are recognized when determinable, which is generally when such commissions are received or when we receive data from the insurance companies that allows the reasonable estimation of these amounts. Share-Based Payments. Compensation expense for stock options, non-vested stock awards/stock units and deferred stock units is based on the fair value of the award on the measurement date, which, for us, is the date of the grant and is recognized ratably over the service period of the award. Compensation expense for performance stock units is based on the fair value of the award on the measurement date, which, for us, is the date of the grant and is recognized over the service period of the award based upon the probable number of units expected to vest. The fair value of stock options is estimated using a binomial lattice-based valuation model. The fair value of non-vested stock awards/stock units and deferred stock units is generally the market price of our stock on the date of grant. The fair value of performance stock units is generally the market price of our stock on the date of grant discounted by the present value of the dividends expected to be paid on our common stock during the service period of the award because dividend equivalent payments on performance stock units are deferred until such time that the units vest and shares are issued. The impact of forfeitures of share-based payment awards on compensation expense is recognized as forfeitures occur. Advertising Costs. Advertising costs are expensed as incurred. Income Taxes. Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities (excluding deferred tax assets and liabilities related to business combinations or components of other comprehensive income). Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the expected amount most likely to be realized. Realization of deferred tax assets is dependent upon the generation of a sufficient level of future taxable income and recoverable taxes paid in prior years. Although realization is not assured, management believes it is more likely than not that all of the deferred tax assets will be realized. Interest and/or penalties related to income taxes are reported as a component of income tax expense. The income tax effects related to settlements of share-based payment awards are reported in earnings as an increase (or decrease) to income tax expense (see Note 13 - Income Taxes). Prior to 2016, income tax benefits at settlement of an award were reported as an increase (or decrease) to additional paid-in capital to the extent that those benefits were greater than (or less than) the income tax benefits recognized in earnings during the award's vesting period. We file a consolidated income tax return with our subsidiaries. Federal income tax expense or benefit has been allocated to subsidiaries on a separate return basis. Basic and Diluted Earnings Per Common Share. Earnings per common share is computed using the two-class method prescribed under ASC Topic 260, “Earnings Per Share.” ASC Topic 260 provides that unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and shall be included in the computation of earnings per share pursuant to the two-class method. We have determined that our outstanding non-vested stock awards/stock units and deferred stock units are participating securities. Under the two-class method, basic earnings per common share is computed by dividing net earnings allocated to common stock by the weighted-average number of common shares outstanding during the applicable period, excluding outstanding participating securities. Diluted earnings per common share is computed using the weighted-average number of shares determined for the basic earnings per common share computation plus the dilutive effect of stock compensation using the treasury stock method. A reconciliation of the weighted-average shares used in calculating basic earnings per common share and the weighted average common shares used in calculating diluted earnings per common share for the reported periods is provided in Note 10 - Earnings Per Common Share. Comprehensive Income. Comprehensive income includes all changes in shareholders’ equity during a period, except those resulting from transactions with shareholders. Besides net income, other components of our comprehensive income include the after tax effect of changes in the net unrealized gain/loss on securities available for sale, changes in the net unrealized gain on securities transferred to held to maturity and changes in the net actuarial gain/loss on defined benefit post-retirement benefit plans. See Note 14 - Other Comprehensive Income (Loss). Derivative Financial Instruments. Our hedging policies permit the use of various derivative financial instruments to manage interest rate risk or to hedge specified assets and liabilities. All derivatives are recorded at fair value on our balance sheet. Derivatives executed with the same counterparty are generally subject to master netting arrangements, however, fair value amounts recognized for derivatives and fair value amounts recognized for the right/obligation to reclaim/return cash collateral are not offset for financial reporting purposes. We may be required to recognize certain contracts and commitments as derivatives when the characteristics of those contracts and commitments meet the definition of a derivative. To qualify for hedge accounting, derivatives must be highly effective at reducing the risk associated with the exposure being hedged and must be designated as a hedge at the inception of the derivative contract. We consider a hedge to be highly effective if the change in fair value of the derivative hedging instrument is within 80% to 125% of the opposite change in the fair value of the hedged item attributable to the hedged risk. If derivative instruments are designated as hedges of fair values, and such hedges are highly effective, both the change in the fair value of the hedge and the hedged item are included in current earnings. Fair value adjustments related to cash flow hedges are recorded in other comprehensive income and are reclassified to earnings when the hedged transaction is reflected in earnings. Ineffective portions of hedges are reflected in earnings as they occur. Actual cash receipts and/or payments and related accruals on derivatives related to hedges are recorded as adjustments to the interest income or interest expense associated with the hedged item. During the life of the hedge, we formally assess whether derivatives designated as hedging instruments continue to be highly effective in offsetting changes in the fair value or cash flows of hedged items. If it is determined that a hedge has ceased to be highly effective, we will discontinue hedge accounting prospectively. At such time, previous adjustments to the carrying value of the hedged item are reversed into current earnings and the derivative instrument is reclassified to a trading position recorded at fair value. Fair Value Measurements. In general, fair values of financial instruments are based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality and our creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. See Note 17 - Fair Value Measurements. Transfers of Financial Assets. Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (i) the assets have been isolated from us, (ii) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (iii) we do not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Loss Contingencies. Loss contingencies, including claims and legal actions arising in the ordinary course of business are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Trust Assets. Assets of our trust department, other than cash on deposit at Frost Bank, are not included in the accompanying financial statements because they are not our assets. Accounting Changes, Reclassifications and Restatement. Certain items in prior financial statements have been reclassified to conform to the current presentation. |
Securities |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities | Securities Securities. Year-end securities held to maturity and available for sale consisted of the following:
All mortgage-backed securities included in the above table were issued by U.S. government agencies and corporations. At December 31, 2017, approximately 98.2% of the securities in our municipal bond portfolio were issued by political subdivisions or agencies within the State of Texas, of which approximately 67.8% are either guaranteed by the Texas Permanent School Fund, which has a “triple-A” insurer financial strength rating, or are secured by U.S. Treasury securities via defeasance of the debt by the issuers. Securities with limited marketability, such as stock in the Federal Reserve Bank and the Federal Home Loan Bank, are carried at cost and are reported as other available for sale securities in the table above. The carrying value of securities pledged to secure public funds, trust deposits, repurchase agreements and for other purposes, as required or permitted by law was $3.8 billion at December 31, 2017 and $3.9 billion at December 31, 2016. During 2012, we reclassified certain securities from available for sale to held to maturity. The securities had an aggregate fair value of $2.3 billion with an aggregate net unrealized gain of $165.7 million ($107.7 million, net of tax) on the date of the transfer. The net unamortized, unrealized gain on the remaining transferred securities included in accumulated other comprehensive income in the accompanying balance sheet totaled $11.6 million ($7.5 million, net of tax) at December 31, 2017 and $27.7 million ($18.0 million, net of tax) at December 31, 2016. This amount will be amortized out of accumulated other comprehensive income over the remaining life of the underlying securities as an adjustment of the yield on those securities. Unrealized Losses. Year-end securities with unrealized losses, segregated by length of impairment, were as follows:
Declines in the fair value of held-to-maturity and available-for-sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses to the extent the impairment is related to credit losses. The amount of the impairment related to other factors is recognized in other comprehensive income. In estimating other-than-temporary impairment losses, management considers, among other things, (i) the length of time and the extent to which the fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer, and (iii) the intent and our ability to retain our investment in the issuer for a period of time sufficient to allow for any anticipated recovery in cost. Management has the ability and intent to hold the securities classified as held to maturity in the table above until they mature, at which time we expect to receive full value for the securities. Furthermore, as of December 31, 2017, management does not have the intent to sell any of the securities classified as available for sale in the table above and believes that it is more likely than not that we will not have to sell any such securities before a recovery of cost. Any unrealized losses are due to increases in market interest rates over the yields available at the time the underlying securities were purchased. The fair value is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments decline. Management does not believe any of the securities are impaired due to reasons of credit quality. Accordingly, as of December 31, 2017, management believes the impairments detailed in the table above are temporary and no impairment loss has been realized in our consolidated income statement. Contractual Maturities. The amortized cost and estimated fair value of securities, excluding trading securities, at December 31, 2017 are presented below by contractual maturity. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Residential mortgage-backed securities and equity securities are shown separately since they are not due at a single maturity date.
Sales of Securities. During 2016, we sold certain securities issued by municipalities that, based upon our internal credit analysis, had experienced significant deterioration in creditworthiness. The risk exposure presented by these municipalities had increased beyond acceptable levels and we determined that it was reasonably possible that all amounts due would not be collected. In the first case, our credit analysis determined that most of the affected municipalities had been significantly impacted by the significant decline in market oil prices due to the fact that their tax bases are heavily reliant on the energy industry relative to other sectors of the economy. Specifically, the revenues of these municipalities had been adversely impacted by the sustained low-level of oil prices. Additionally, some of these municipalities had already been downgraded or had been put on credit watch and were subsequently downgraded by various credit rating agencies. In the second case, we sold certain securities related to a municipality that was unrelated to a reliance on the energy industry. This municipality had experienced significant deterioration in creditworthiness as a result of the emergence of significant funding obligations which resulted in credit downgrades. In both cases, some of the securities we sold were classified as held to maturity prior to their sale. Despite their classification as held to maturity, we believe the sale of these securities was merited and permissible under the applicable accounting guidelines because of the significant deterioration in the creditworthiness of the issuers. Sales of securities held to maturity were as follows:
Sales of securities available for sale were as follows:
Premiums and Discounts. Premium amortization and discount accretion included in interest income on securities was as follows:
Trading Account Securities. Year-end trading account securities, at estimated fair value, were as follows:
Net gains and losses on trading account securities were as follows:
|
Loans |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans | Loans Year-end loans, including leases net of unearned discounts, consisted of the following:
Concentrations of Credit. Most of our lending activity occurs within the State of Texas, including the four largest metropolitan areas of Austin, Dallas/Ft. Worth, Houston and San Antonio, as well as other markets. The majority of our loan portfolio consists of commercial and industrial and commercial real estate loans. As of December 31, 2017 and 2016, there were no concentrations of loans related to any single industry in excess of 10% of total loans other than energy loans, which totaled 11.4% and 11.6% of total loans, respectively. Unfunded commitments to extend credit and standby letters of credit issued to customers in the energy industry totaled $1.1 billion and $46.7 million, respectively, as of December 31, 2017. Foreign Loans. We have U.S. dollar denominated loans and commitments to borrowers in Mexico. The outstanding balance of these loans and the unfunded amounts available under these commitments were not significant at December 31, 2017 or 2016. Overdrafts. Deposit account overdrafts reported as loans totaled $7.3 million and $6.3 million at December 31, 2017 and 2016. Related Party Loans. In the ordinary course of business, we have granted loans to certain directors, executive officers and their affiliates (collectively referred to as “related parties”). Activity in related party loans during 2017 is presented in the following table. Other changes were primarily related to changes in related-party status.
Non-Accrual and Past Due Loans. Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Loans are placed on non-accrual status when, in management’s opinion, the borrower may be unable to meet payment obligations as they become due, as well as when required by regulatory provisions. In determining whether or not a borrower may be unable to meet payment obligations for each class of loans, we consider the borrower’s debt service capacity through the analysis of current financial information, if available, and/or current information with regards to our collateral position. Regulatory provisions would typically require the placement of a loan on non-accrual status if (i) principal or interest has been in default for a period of 90 days or more unless the loan is both well secured and in the process of collection or (ii) full payment of principal and interest is not expected. Loans may be placed on non-accrual status regardless of whether or not such loans are considered past due. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income on non-accrual loans is recognized only to the extent that cash payments are received in excess of principal due. A loan may be returned to accrual status when all the principal and interest amounts contractually due are brought current and future principal and interest amounts contractually due are reasonably assured, which is typically evidenced by a sustained period (at least six months) of repayment performance by the borrower. Year-end non-accrual loans, segregated by class of loans, were as follows:
As of December 31, 2017 and 2016, non-accrual loans reported in the table above included $53.6 million and $44.9 million related to loans that were restructured as “troubled debt restructurings” during 2017 and 2016, respectively. See the section captioned “Troubled Debt Restructurings” elsewhere in this note. Had non-accrual loans performed in accordance with their original contract terms, we would have recognized additional interest income, net of tax, of approximately $3.7 million in 2017, $3.1 million in 2016 and $1.6 million in 2015. An age analysis of past due loans (including both accruing and non-accruing loans), segregated by class of loans, as of December 31, 2017 was as follows:
Impaired Loans. Loans are considered impaired when, based on current information and events, it is probable we will be unable to collect all amounts due in accordance with the original contractual terms of the loan agreement, including scheduled principal and interest payments. Impairment is evaluated in total for smaller-balance loans of a similar nature and on an individual loan basis for other loans. If a loan is impaired, a specific valuation allowance is allocated, if necessary, so that the loan is reported net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral. Interest payments on impaired loans are typically applied to principal unless collectibility of the principal amount is reasonably assured, in which case interest is recognized on a cash basis. Impaired loans, or portions thereof, are charged off when deemed uncollectible. Regulatory guidelines require us to reevaluate the fair value of collateral supporting impaired collateral dependent loans on at least an annual basis. While our policy is to comply with the regulatory guidelines, our general practice is to reevaluate the fair value of collateral supporting impaired collateral dependent loans on a quarterly basis. Thus, appraisals are generally not considered to be outdated, and we typically do not make any adjustments to the appraised values. The fair value of collateral supporting impaired collateral dependent loans is evaluated by our internal appraisal services using a methodology that is consistent with the Uniform Standards of Professional Appraisal Practice. The fair value of collateral supporting impaired collateral dependent construction loans is based on an “as is” valuation. Year-end impaired loans are set forth in the following table. No interest income was recognized on impaired loans subsequent to their classification as impaired.
Troubled Debt Restructurings. The restructuring of a loan is considered a “troubled debt restructuring” if both (i) the borrower is experiencing financial difficulties and (ii) the creditor has granted a concession. Concessions may include interest rate reductions or below market interest rates, principal forgiveness, restructuring amortization schedules, reductions in collateral and other actions intended to minimize potential losses. Troubled debt restructurings that occurred during 2017, 2016 and 2015 are set forth in the following table.
Loan modifications are typically related to extending amortization periods, converting loans to interest only for a limited period of time, deferral of interest payments, waiver of certain covenants, consolidating notes and/or reducing collateral or interest rates. The modifications during the reported periods did not significantly impact our determination of the allowance for loan losses. Additional information related to restructured loans was as follows:
Credit Quality Indicators. As part of the on-going monitoring of the credit quality of our loan portfolio, management tracks certain credit quality indicators including trends related to (i) the weighted-average risk grade of commercial loans, (ii) the level of classified commercial loans, (iii) the delinquency status of consumer loans (see details above) (iv) net charge-offs, (v) non-performing loans (see details above) and (vi) the general economic conditions in the State of Texas. We utilize a risk grading matrix to assign a risk grade to each of our commercial loans. Loans are graded on a scale of 1 to 14. A description of the general characteristics of the 14 risk grades is as follows:
In monitoring credit quality trends in the context of assessing the appropriate level of the allowance for loan losses, we monitor portfolio credit quality by the weighted-average risk grade of each class of commercial loan. Individual relationship managers review updated financial information for all pass grade loans to recalculate the risk grade on at least an annual basis. When a loan has a calculated risk grade of 9, it is still considered a pass grade loan; however, it is considered to be on management’s “watch list,” where a significant risk-modifying action is anticipated in the near term. When a loan has a calculated risk grade of 10 or higher, a special assets officer monitors the loan on an on-going basis. The following tables present weighted average risk grades for all commercial loans by class.
We have established maximum loan to value standards to be applied during the origination process of commercial and consumer real estate loans. We do not subsequently monitor loan-to-value ratios (either individually or on a weighted-average basis) for loans that are subsequently considered to be of a pass grade (grades 9 or better) and/or current with respect to principal and interest payments. As stated above, when an individual commercial real estate loan has a calculated risk grade of 10 or higher, a special assets officer analyzes the loan to determine whether the loan is impaired. At that time, we reassess the loan to value position in the loan. If the loan is determined to be collateral dependent, specific allocations of the allowance for loan losses are made for the amount of any collateral deficiency. If a collateral deficiency is ultimately deemed to be uncollectible, the amount is charged-off. These loans and related assessments of collateral position are monitored on an individual, case-by-case basis. We do not monitor loan-to-value ratios on a weighted-average portfolio-basis for commercial real estate loans having a calculated risk grade of 10 or higher as excess collateral from one borrower cannot be used to offset a collateral deficit for another borrower. When an individual consumer real estate loan becomes past due by more than 10 days, the assigned relationship manager will begin collection efforts. We only reassess the loan to value position in a consumer real estate loan if, during the course of the collections process, it is determined that the loan has become collateral dependent, and any collateral deficiency is recognized as a charge-off to the allowance for loan losses. Accordingly, we do not monitor loan-to-value ratios on a weighted-average basis for collateral dependent consumer real estate loans. Generally, a commercial loan, or a portion thereof, is charged-off immediately when it is determined, through the analysis of any available current financial information with regards to the borrower, that the borrower is incapable of servicing unsecured debt, there is little or no prospect for near term improvement and no realistic strengthening action of significance is pending or, in the case of secured debt, when it is determined, through analysis of current information with regards to our collateral position, that amounts due from the borrower are in excess of the calculated current fair value of the collateral. Notwithstanding the foregoing, generally, commercial loans that become past due 180 cumulative days are charged-off. Generally, a consumer loan, or a portion thereof, is charged-off in accordance with regulatory guidelines which provide that such loans be charged-off when we become aware of the loss, such as from a triggering event that may include new information about a borrower’s intent/ability to repay the loan, bankruptcy, fraud or death, among other things, but in any event the charge-off must be taken within specified delinquency time frames. Such delinquency time frames state that closed-end retail loans (loans with pre-defined maturity dates, such as real estate mortgages, home equity loans and consumer installment loans) that become past due 120 cumulative days and open-end retail loans (loans that roll-over at the end of each term, such as home equity lines of credit) that become past due 180 cumulative days should be classified as a loss and charged-off. Net (charge-offs)/recoveries, segregated by class of loan, were as follows:
In assessing the general economic conditions in the State of Texas, management monitors and tracks the Texas Leading Index (“TLI”), which is produced by the Federal Reserve Bank of Dallas. The TLI is a single summary statistic that is designed to signal the likelihood of the Texas economy’s transition from expansion to recession and vice versa. Management believes this index provides a reliable indication of the direction of overall credit quality. The TLI is a composite of the following eight leading indicators: (i) Texas Value of the Dollar, (ii) U.S. Leading Index, (iii) real oil prices (iv) well permits, (v) initial claims for unemployment insurance, (vi) Texas Stock Index, (vii) Help-Wanted Index and (viii) average weekly hours worked in manufacturing. The TLI totaled 128.7 at December 31, 2017 and 123.1 at December 31, 2016. A higher TLI value implies more favorable economic conditions. Allowance for Loan Losses. The allowance for loan losses is a reserve established through a provision for loan losses charged to expense, which represents management’s best estimate of inherent losses that have been incurred within the existing portfolio of loans. The allowance, in the judgment of management, is necessary to reserve for estimated loan losses and risks inherent in the loan portfolio. Our allowance for loan loss methodology follows the accounting guidance set forth in U.S. generally accepted accounting principles and the Interagency Policy Statement on the Allowance for Loan and Lease Losses, which was jointly issued by U.S. bank regulatory agencies. In that regard, our allowance for loan losses includes allowance allocations calculated in accordance with ASC Topic 310, “Receivables” and allowance allocations calculated in accordance with ASC Topic 450, “Contingencies.” Accordingly, the methodology is based on historical loss experience by type of credit and internal risk grade, specific homogeneous risk pools and specific loss allocations, with adjustments for current events and conditions. Our process for determining the appropriate level of the allowance for loan losses is designed to account for credit deterioration as it occurs. The provision for loan losses reflects loan quality trends, including the levels of and trends related to non-accrual loans, past due loans, potential problem loans, criticized loans and net charge-offs or recoveries, among other factors. The provision for loan losses also reflects the totality of actions taken on all loans for a particular period. In other words, the amount of the provision reflects not only the necessary increases in the allowance for loan losses related to newly identified criticized loans, but it also reflects actions taken related to other loans including, among other things, any necessary increases or decreases in required allowances for specific loans or loan pools. The level of the allowance reflects management’s continuing evaluation of industry concentrations, specific credit risks, loan loss and recovery experience, current loan portfolio quality, present economic, political and regulatory conditions and unidentified losses inherent in the current loan portfolio. Portions of the allowance may be allocated for specific credits; however, the entire allowance is available for any credit that, in management’s judgment, should be charged off. While management utilizes its best judgment and information available, the ultimate determination of the appropriate level of the allowance is dependent upon a variety of factors beyond our control, including, among other things, the performance of our loan portfolio, the economy, changes in interest rates and the view of the regulatory authorities toward loan classifications. We monitor whether or not the allowance for loan loss allocation model, as a whole, calculates an appropriate level of allowance for loan losses that moves in direct correlation to the general macroeconomic and loan portfolio conditions we experience over time. Our allowance for loan losses consists of: (i) specific valuation allowances determined in accordance with ASC Topic 310 based on probable losses on specific loans; (ii) historical valuation allowances determined in accordance with ASC Topic 450 based on historical loan loss experience for similar loans with similar characteristics and trends, adjusted, as necessary, to reflect the impact of current conditions; (iii) general valuation allowances determined in accordance with ASC Topic 450 based on various risk factors that are internal to us; and (iv) macroeconomic valuation allowances determined in accordance with ASC Topic 450 based on general economic conditions and other risk factors that are external to us. The allowances established for probable losses on specific loans are based on a regular analysis and evaluation of problem loans. Loans are classified based on an internal credit risk grading process that evaluates, among other things: (i) the obligor’s ability to repay; (ii) the underlying collateral, if any; and (iii) the economic environment and industry in which the borrower operates. This analysis is performed at the relationship manager level for all commercial loans. When a loan has a calculated grade of 10 or higher, a special assets officer analyzes the loan to determine whether the loan is impaired and, if impaired, the need to specifically allocate a portion of the allowance for loan losses to the loan. Specific valuation allowances are determined by analyzing the borrower’s ability to repay amounts owed, collateral deficiencies, the relative risk grade of the loan and economic conditions affecting the borrower’s industry, among other things. Historical valuation allowances are calculated based on the historical gross loss experience of specific types of loans and the internal risk grade of such loans. We calculate historical gross loss ratios for pools of similar loans with similar characteristics based on the proportion of actual charge-offs experienced to the total population of loans in the pool. The historical gross loss ratios are periodically (no less than annually) updated based on actual charge-off experience. A historical valuation allowance is established for each pool of similar loans based upon the product of the historical gross loss ratio and the total dollar amount of the loans in the pool. Our pools of similar loans include similarly risk-graded groups of commercial and industrial loans, energy loans, commercial real estate loans, consumer real estate loans, consumer and other loans and overdrafts. Prior to 2016, we used a single, combined historical loss allocation factor for all consumer and other loans, which included overdrafts. In 2016, we began using two separate historical loss allocation factors for consumer and other loans, one historical loss allocation factor for consumer and other loans, excluding overdrafts, and a separate historical loss allocation factor for overdrafts. While the effect of this change resulted in a decrease in the estimated valuation allowances needed for consumer and other loans, the impact of the change was not significant to our overall allocation of the allowance for loan losses. General valuation allowances include allocations for groups of similar loans with similar risk characteristics that exceed certain concentration limits established by management and/or our board of directors. Concentration risk limits have been established, among other things, for certain industry concentrations, large balance and highly leveraged credit relationships that exceed specified risk grades and loans originated with policy exceptions that exceed specified risk grades. Additionally, general valuation allowances are provided for loans that did not undergo a separate, independent concurrence review during the underwriting process (generally those loans under $1.0 million at origination). Our allowance methodology for general valuation allowances also includes a reduction factor for recoveries of prior charge-offs to compensate for the fact that historical loss allocations are based upon gross charge-offs rather than net. The adjustment for recoveries is based on the lower of annualized, year-to-date gross recoveries or the total gross recoveries by loan portfolio segment for the preceding four quarters, adjusted, when necessary, for expected future trends in recoveries. The components of the macroeconomic valuation allowance include (i) reserves allocated as a result of applying an environmental risk adjustment factor to the base historical loss allocation, (ii) reserves allocated for loans to borrowers in distressed industries and (iii) reserves allocated based upon current economic trends and other quantitative and qualitative factors that could impact our loan portfolio segments. The aggregate sum of these components for each portfolio segment reflects management's assessment of current and expected economic conditions and other external factors that impact the inherent credit quality of loans in that portfolio segment. The environmental adjustment factor is based upon a more qualitative analysis of risk and is calculated through a survey of senior officers who are involved in credit making decisions at a corporate-wide and/or regional level. On a quarterly basis, survey participants rate the degree of various risks utilizing a numeric scale that translates to varying grades of high, moderate or low levels of risk. The results are then input into a risk-weighting matrix to determine an appropriate environmental risk adjustment factor. The various risks that may be considered in the determination of the environmental adjustment factor include, among other things, (i) the experience, ability and effectiveness of the bank’s lending management and staff; (ii) the effectiveness of our loan policies, procedures and internal controls; (iii) changes in asset quality; (iv) the impact of legislative and governmental influences affecting industry sectors; (v) the effectiveness of the internal loan review function; (vi) the impact of competition on loan structuring and pricing; and (vii) the impact of rising interest rates on portfolio risk. In periods where the surveyed risks are perceived to be higher, the risk-weighting matrix will generally result in a higher environmental adjustment factor, which, in turn will result in higher levels of general valuation allowance allocations. The opposite holds true in periods where the surveyed risks are perceived to be lower. Macroeconomic valuation allowances also include amounts allocated for loans to borrowers in distressed industries within our commercial loan portfolio segments. To determine the amount of the allocation for our commercial and industrial and commercial real estate loan portfolio segments, management calculates the weighted-average risk grade for all loans to borrowers in distressed industries by loan portfolio segment. A multiple is then applied to the amount by which the weighted-average risk grade for loans to borrowers in distressed industries exceeds the weighted-average risk grade for all pass-grade loans within the loan portfolio segment to derive an allocation factor for loans to borrowers in distressed industries. The amount of the allocation for each loan portfolio segment is the product of this allocation factor and the outstanding balance of pass-grade loans within the identified distressed industries that have a risk grade of 6 or higher. Management identifies potential distressed industries by analyzing industry trends related to delinquencies, classifications and charge-offs. At December 31, 2017 and 2016, certain segments of contractors were considered to be a distressed industry based on elevated levels of delinquencies, classifications and charge-offs relative to other industries within our commercial loan portfolios. Furthermore, we determined, through a review of borrower financial information that, as a whole, contractors have experienced, among other things, decreased revenues, reduced backlog of work, compressed margins and little, if any, net income. The aforementioned methodology for allocating reserves for distressed industries within commercial and industrial and commercial real estate loan portfolio segments does not translate to our energy loan portfolio segment as the segment is made up of a single industry. For energy loans, management analyzes current economic trends, commodity prices and various other quantitative and qualitative factors that impact the inherent credit quality of our energy loan portfolio segment. If, based upon this analysis, management concludes that the prevailing conditions could have an adverse impact on the credit quality of our energy loan portfolio, management performs a sensitivity stress test on individual loans within our energy loan portfolio. The sensitivity stress test includes a commodity price shock to 75% of the commodity price deck. We also assess the financial strength of individual borrowers, the quality of collateral, the relative experience of the individual borrowers and their ability to withstand an economic downturn. The sensitivity stress test allows us to identify potential credit issues during periods of economic uncertainty. Reserve allocations resulting from the sensitivity stress test are calculated by hypothetically increasing the risk grades for affected borrowers and applying our allowance methodology to determine the incremental reserves that would be required. Macroeconomic valuation allowances may also include additional reserves allocated based upon management's assessment of current and expected economic conditions, trends and other quantitative and qualitative factors that could impact the credit quality of our loan portfolio segments. Additional reserves are allocated when, based upon this assessment, management believes that there are inherent credit risks for a given portfolio segment that have not yet materialized through the migration of loan risk grades and, therefore, have not yet impacted our historical or general valuation allowances. The following table presents details of the allowance for loan losses, segregated by loan portfolio segment.
We monitor whether or not the allowance for loan loss allocation model, as a whole, calculates an appropriate level of allowance for loan losses that moves in direct correlation to the general macroeconomic and loan portfolio conditions we experience over time. In assessing the general macroeconomic trends/conditions, we analyze trends in the components of the TLI, as well as any available information related to regional, national and international economic conditions and events and the impact such conditions and events may have on us and our customers. With regard to assessing loan portfolio conditions, we analyze trends in weighted-average portfolio risk-grades, classified and non-performing loans and charge-off activity. In periods where general macroeconomic and loan portfolio conditions are in a deteriorating trend or remain at deteriorated levels, based on historical trends, we would expect to see the allowance for loan loss allocation model, as a whole, calculate higher levels of required allowances than in periods where general macroeconomic and loan portfolio conditions are in an improving trend or remain at an elevated level, based on historical trends. The Corporation’s recorded investment in loans related to each balance in the allowance for loan losses by portfolio segment and detailed on the basis of the impairment methodology used by the Corporation was as follows:
The following table details activity in the allowance for loan losses by portfolio segment for 2017, 2016 and 2015. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.
|
Premises and Equipment |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Premises and Equipment | Premises and Equipment Year-end premises and equipment were as follows:
Depreciation and amortization of premises and equipment totaled $36.3 million in 2017, $36.0 million in 2016 and $28.5 million in 2015. Comprehensive Development Agreement. In July 2015, we entered into a comprehensive development agreement with the City of San Antonio and a third party controlled by one of our directors whereby under separate agreements, (i) we sold our existing headquarters building to the City of San Antonio and other adjacent properties to the third party in the fourth quarter of 2016, (ii) the third party has agreed to build a new office building where we will be the primary tenant (the "New Frost Headquarters"), and (iii) we have agreed to lease back our existing headquarters building from the City of San Antonio until the construction of the New Frost Headquarters is complete, which is currently expected to take place in 2019. In connection with the sale and subsequent leaseback of our existing headquarters building with the City of San Antonio and the sale of other adjacent properties to the third party in the fourth quarter of 2016, we recognized a net gain totaling $10.3 million in 2016 and a deferred gain. The deferred gain totaled $4.2 million at December 31, 2017 and $7.1 million at December 31, 2016, and will be amortized into income over the term of the lease. During 2017, amortization of the deferred gain totaled $2.9 million. Under the comprehensive development agreement, we also agreed to sell various properties adjacent to the New Frost Headquarters to the third party in 2019. We do not expect any gains or losses that may be realized on those future sales to have a significant impact on our financial statements. |
Goodwill and Other Intangible Assets |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill and other intangible assets are presented in the tables below. During 2016, we recorded goodwill totaling $284 thousand and other intangible assets totaling $405 thousand in connection with an insurance acquisition. Goodwill. Year-end goodwill was as follows:
Other Intangible Assets. Year-end other intangible assets were as follows:
Other intangible assets are amortized on an accelerated basis over their estimated lives, which range from 5 to 10 years. Amortization expense related to intangible assets totaled $1.7 million in 2017, $2.4 million in 2016, and $3.3 million in 2015. The estimated aggregate future amortization expense for intangible assets remaining as of December 31, 2017 is as follows:
|
Deposits |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits | Deposits Year-end deposits were as follows:
The following table presents additional information about our year-end deposits:
Scheduled maturities of time deposits, including both private and public funds, at December 31, 2017 were as follows:
Scheduled maturities of time deposits in amounts of $100,000 or more, including both private and public funds, at December 31, 2017, were as follows:
|
Borrowed Funds |
12 Months Ended |
---|---|
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Borrowed Funds | Borrowed Funds Federal Funds Purchased and Securities Sold Under Agreements to Repurchase. Federal funds purchased are short-term borrowings that typically mature within one to ninety days. Federal funds purchased totaled $30.6 million and $13.7 million at December 31, 2017 and 2016. Securities sold under agreements to repurchase are secured short-term borrowings that typically mature overnight or within thirty to ninety days. Securities sold under agreements to repurchase are stated at the amount of cash received in connection with the transaction. We may be required to provide additional collateral based on the fair value of the underlying securities. Securities sold under agreements to repurchase totaled $1.1 billion and $963.3 million at December 31, 2017 and 2016. Subordinated Notes Payable. In March 2017, we issued $100 million of 4.50% subordinated notes that mature on March 17, 2027. The notes, which qualify as Tier 2 capital for Cullen/Frost, bear interest at the rate of 4.50% per annum, payable semi-annually on each March 17 and September 17. The notes are unsecured and subordinated in right of payment to the payment of our existing and future senior indebtedness and structurally subordinated to all existing and future indebtedness of our subsidiaries. Unamortized debt issuance costs related to these notes, totaled approximately $1.4 million at December 31, 2017. Proceeds from sale of the notes were used for general corporate purposes. Our $100 million of 5.75% fixed-to-floating rate subordinated notes originally issued in February 2007 matured and were redeemed on February 15, 2017. The notes qualified as Tier 2 capital for Cullen/Frost under the capital rules in effect prior to 2015. Prior to February 2012, the notes had a fixed interest rate of 5.75% per annum, after which the notes bore interest at a rate per annum equal to three-month LIBOR for the related interest period plus 0.53% (1.43% at December 31, 2016), paid quarterly. Junior Subordinated Deferrable Interest Debentures. At December 31, 2017 and 2016, we had $123.7 million of junior subordinated deferrable interest debentures issued to Cullen/Frost Capital Trust II (“Trust II”), a wholly owned Delaware statutory business trust. Unamortized debt issuance costs related to Trust II totaled $931 thousand and $988 thousand at December 31, 2017 and 2016. At December 31, 2017 and 2016, we also had $13.4 million of junior subordinated deferrable interest debentures issued to WNB Capital Trust I (“WNB Trust”), a wholly owned Delaware statutory business trust acquired in connection with the acquisition of WNB Bancshares, Inc. (“WNB”) in 2014. Trust II and WNB Trust are variable interest entities for which we are not the primary beneficiary. As such, the accounts of Trust II and WNB Trust are not included in our consolidated financial statements. See Note 1 - Summary of Significant Accounting Policies for additional information about our consolidation policy. Details of our transactions with the capital trust are presented below. Trust II was formed in 2004 for the purpose of issuing $120 million of floating rate (three-month LIBOR plus a margin of 1.55%) trust preferred securities, which represent beneficial interests in the assets of the trust. The trust preferred securities will mature on March 1, 2034 and are currently redeemable with the approval of the Federal Reserve Board in whole or in part at our option. Distributions on the trust preferred securities are payable quarterly in arrears on March 1, June 1, September 1 and December 1 of each year. Trust II also issued $3.7 million of common equity securities to Cullen/Frost. The proceeds of the offering of the trust preferred securities and common equity securities were used to purchase $123.7 million of floating rate (three-month LIBOR plus a margin of 1.55%, which was equal to 3.03% and 2.48% at December 31, 2017 and 2016) junior subordinated deferrable interest debentures issued by us, which have terms substantially similar to the trust preferred securities. WNB Trust was formed in 2004 by WNB for the purpose of issuing $13.0 million of floating rate (three-month LIBOR plus a margin of 2.35%) trust preferred securities, which represent beneficial interests in the assets of the trust. The trust preferred securities will mature on July 23, 2034 and are currently redeemable with the approval of the Federal Reserve Board in whole or in part at our option. Distributions on the trust preferred securities are payable quarterly in arrears on January 23, April 23, July 23 and October 23 of each year. WNB Trust also issued $403 thousand of common equity securities to WNB. The proceeds of the offering of the trust preferred securities and common equity securities were used to purchase $13.4 million of floating rate (three-month LIBOR plus a margin of 2.35%, which was equal to 3.71% and 3.23% at December 31, 2017and 2016) junior subordinated deferrable interest debentures issued by WNB, which have terms substantially similar to the trust preferred securities. We have the right at any time during the term of the debentures issued to Trust II and WNB Trust to defer payments of interest at any time or from time to time for an extension period not exceeding 20 consecutive quarterly periods with respect to each extension period. Under the terms of the debentures, in the event that under certain circumstances there is an event of default under the debentures or we have elected to defer interest on the debentures, we may not, with certain exceptions, declare or pay any dividends or distributions on our capital stock or purchase or acquire any of our capital stock. Payments of distributions on the trust preferred securities and payments on redemption of the trust preferred securities are guaranteed by us on a limited basis. We are obligated by agreement to pay any costs, expenses or liabilities of Trust II and WNB Trust other than those arising under the trust preferred securities. Our obligations under the junior subordinated debentures, the related indentures, the trust agreements establishing the trusts, the guarantees and the agreements as to expenses and liabilities, in the aggregate, constitute a full and unconditional guarantee by us of Trust II’s and WNB Trust's obligations under the trust preferred securities. Although the accounts of Trust II and WNB Trust are not included in our consolidated financial statements, the $120.0 million in trust preferred securities issued by Trust II and the $13.0 million in trust preferred securities issued by WNB Trust are included in the capital of Cullen/Frost for regulatory capital purposes as of December 31, 2017 and 2016. See Note 9 - Capital and Regulatory Matters. |
Off-Balance-Sheet Arrangements, Commitments, Guarantees and Contingencies |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Off-Balance-Sheet Arrangements, Commitments, Guarantees and Contingencies | Off-Balance-Sheet Arrangements, Commitments, Guarantees and Contingencies Financial Instruments with Off-Balance-Sheet Risk. In the normal course of business, we enter into various transactions, which, in accordance with generally accepted accounting principles are not included in our consolidated balance sheets. We enter into these transactions to meet the financing needs of our customers. These transactions include commitments to extend credit and standby letters of credit, which involve, to varying degrees, elements of credit risk and interest rate risk in excess of the amounts recognized in the consolidated balance sheets. We minimize our exposure to loss under these commitments by subjecting them to credit approval and monitoring procedures. We enter into contractual commitments to extend credit, normally with fixed expiration dates or termination clauses, at specified rates and for specific purposes. Substantially all of our commitments to extend credit are contingent upon customers maintaining specific credit standards at the time of loan funding. Standby letters of credit are written conditional commitments we issued to guarantee the performance of a customer to a third party. In the event the customer does not perform in accordance with the terms of the agreement with the third party, we would be required to fund the commitment. The maximum potential amount of future payments we could be required to make is represented by the contractual amount of the commitment. If the commitment were funded, we would be entitled to seek recovery from the customer. Our policies generally require that standby letter of credit arrangements contain security and debt covenants similar to those contained in loan agreements. We consider the fees collected in connection with the issuance of standby letters of credit to be representative of the fair value of our obligation undertaken in issuing the guarantee. In accordance with applicable accounting standards related to guarantees, we defer fees collected in connection with the issuance of standby letters of credit. The fees are then recognized in income proportionately over the life of the standby letter of credit agreement. The deferred standby letter of credit fees represent the fair value of our potential obligations under the standby letter of credit guarantees. Year-end financial instruments with off-balance-sheet risk were as follows:
Credit Card Guarantees. We guarantee the credit card debt of certain customers to the merchant bank that issues the cards. At December 31, 2017 and 2016, the guarantees totaled approximately $8.4 million and $8.3 million, of which amounts, $1.2 million and $975 thousand were fully collateralized. Lease Commitments. We lease certain office facilities and office equipment under operating leases. Rent expense for all operating leases totaled $30.5 million in 2017, $28.9 million in 2016 and $28.9 million in 2015. Future minimum lease payments due under non-cancelable operating leases at December 31, 2017 were as follows:
It is expected that certain leases will be renewed, or equipment replaced with new leased equipment, as these leases expire. Aggregate future minimum rentals to be received under non-cancelable subleases greater than one year at December 31, 2017, were $445 thousand. We lease certain branch facilities from various partnership interests of certain directors. Payments related to these leases totaled $1.4 million in 2017, $1.0 million in 2016 and $963 thousand in 2015. Change in Control Agreements. We have change-in-control agreements with certain executive officers. Under these agreements, each covered person could receive, upon the effectiveness of a change-in-control, two to three times (depending on the person) his or her base compensation plus the target bonus established for the year, and any unpaid base salary and pro rata target bonus for the year in which the termination occurs, including vacation pay. Additionally, the executive’s insurance benefits will continue for two to three full years after the termination and all long-term incentive awards will immediately vest. Litigation. We are subject to various claims and legal actions that have arisen in the course of conducting business. Management does not expect the ultimate disposition of these matters to have a material adverse impact on our financial statements. |
Capital and Regulatory Matters |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Capital Requirements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital and Regulatory Matters | Capital and Regulatory Matters Banks and bank holding companies are subject to various regulatory capital requirements administered by state and federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weighting and other factors. The Basel III Capital Rules, a new comprehensive capital framework for U.S. banking organizations, became effective for Cullen/Frost and Frost Bank on January 1, 2015 (subject to a phase-in period for certain provisions). Quantitative measures established by the Basel III Capital Rules to ensure capital adequacy require the maintenance of minimum amounts and ratios (set forth in the table below) of Common Equity Tier 1 capital, Tier 1 capital and Total capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital to adjusted quarterly average assets (as defined). Cullen/Frost’s and Frost Bank’s Common Equity Tier 1 capital includes common stock and related paid-in capital, net of treasury stock, and retained earnings. In connection with the adoption of the Basel III Capital Rules, we elected to opt-out of the requirement to include most components of accumulated other comprehensive income in Common Equity Tier 1. Common Equity Tier 1 for both Cullen/Frost and Frost Bank is reduced by, goodwill and other intangible assets, net of associated deferred tax liabilities, and subject to transition provisions. Frost Bank's Common Equity Tier 1 is also reduced by its equity investment in its financial subsidiary, Frost Insurance Agency (“FIA”). Tier 1 capital includes Common Equity Tier 1 capital and additional Tier 1 capital. For Cullen/Frost, additional Tier 1 capital at December 31, 2017 and 2016 included $144.5 million of 5.375% non-cumulative perpetual preferred stock. Frost Bank did not have any additional Tier 1 capital beyond Common Equity Tier 1 at December 31, 2017 or 2016. Total capital includes Tier 1 capital and Tier 2 capital. Tier 2 capital for both Cullen/Frost and Frost Bank includes a permissible portion of the allowance for loan losses. Tier 2 capital for Cullen/Frost also includes trust preferred securities that were excluded from Tier 1 capital and qualified subordinated debt. At both December 31, 2017 and 2016, Cullen/Frost's Tier 2 capital included $133.0 million of trust preferred securities. At December 31, 2017, Tier 2 Capital for Cullen/Frost included $100.0 million related to the permissible portion of our aggregate $100 million of 4.50% subordinated notes. The permissible portion of qualified subordinated notes decreases 20% per year during the final five years of the term of the notes. Accordingly, no portion of our $100 million of floating rate subordinated notes that matured on February 15, 2017 were included in Tier 2 capital at December 31, 2016. The Common Equity Tier 1, Tier 1 and Total capital ratios are calculated by dividing the respective capital amounts by risk-weighted assets. Risk-weighted assets are calculated based on regulatory requirements and include total assets, with certain exclusions, allocated by risk weight category, and certain off-balance-sheet items, among other things. The leverage ratio is calculated by dividing Tier 1 capital by adjusted quarterly average total assets, which exclude goodwill and other intangible assets, among other things. When fully phased in on January 1, 2019, the Basel III Capital Rules will require Cullen/Frost and Frost Bank to maintain (i) a minimum ratio of Common Equity Tier 1 capital to risk-weighted assets of at least 4.5%, plus a 2.5% “capital conservation buffer” (which is added to the 4.5% Common Equity Tier 1 capital ratio as that buffer is phased in, effectively resulting in a minimum ratio of Common Equity Tier 1 capital to risk-weighted assets of at least 7.0% upon full implementation), (ii) a minimum ratio of Tier 1 capital to risk-weighted assets of at least 6.0%, plus the capital conservation buffer (which is added to the 6.0% Tier 1 capital ratio as that buffer is phased in, effectively resulting in a minimum Tier 1 capital ratio of 8.5% upon full implementation), (iii) a minimum ratio of Total capital (that is, Tier 1 plus Tier 2) to risk-weighted assets of at least 8.0%, plus the capital conservation buffer (which is added to the 8.0% total capital ratio as that buffer is phased in, effectively resulting in a minimum total capital ratio of 10.5% upon full implementation) and (iv) a minimum leverage ratio of 4.0%, calculated as the ratio of Tier 1 capital to average quarterly assets. The implementation of the capital conservation buffer began on January 1, 2016 at the 0.625% level and will be phased in over a four-year period (increasing by that amount on each subsequent January 1, until it reaches 2.5% on January 1, 2019). The Basel III Capital Rules also provide for a “countercyclical capital buffer” that is applicable to only certain covered institutions and does not have any current applicability to Cullen/Frost or Frost Bank. The capital conservation buffer is designed to absorb losses during periods of economic stress and, as detailed above, effectively increases the minimum required risk-weighted capital ratios. Banking institutions with a ratio of Common Equity Tier 1 capital to risk-weighted assets below the effective minimum (4.5% plus the capital conservation buffer and, if applicable, the countercyclical capital buffer) will face constraints on dividends, equity repurchases and compensation based on the amount of the shortfall. The following table presents actual and required capital ratios as of December 31, 2017 and December 31, 2016 for Cullen/Frost and Frost Bank under the Basel III Capital Rules. The minimum required capital amounts presented include the minimum required capital levels as of December 31, 2017 and December 31, 2016 based on the phase-in provisions of the Basel III Capital Rules and the minimum required capital levels as of January 1, 2019 when the Basel III Capital Rules have been fully phased-in. Capital levels required to be considered well capitalized are based upon prompt corrective action regulations, as amended to reflect the changes under the Basel III Capital Rules.
Management believes that, as of December 31, 2017, Cullen/Frost and its bank subsidiary, Frost Bank, were “well capitalized” based on the ratios presented above. Cullen/Frost and Frost Bank are subject to the regulatory capital requirements administered by the Federal Reserve Board and, for Frost Bank, the Federal Deposit Insurance Corporation (“FDIC”). Regulatory authorities can initiate certain mandatory actions if Cullen/Frost or Frost Bank fail to meet the minimum capital requirements, which could have a direct material effect on our financial statements. Management believes, as of December 31, 2017, that Cullen/Frost and Frost Bank meet all capital adequacy requirements to which they are subject. Preferred Stock. On February 15, 2013, we issued and sold 6,000,000 shares, or $150.0 million in aggregate liquidation preference, of our 5.375% Non-Cumulative Perpetual Preferred Stock, Series A, par value $0.01 and liquidation preference $25 per share (“Series A Preferred Stock”). Dividends on the Series A Preferred stock, if declared, accrue and are payable quarterly, in arrears, at a rate of 5.375%. The Series A Preferred Stock qualifies as Tier 1 capital for the purposes of the regulatory capital calculations. The net proceeds from the issuance and sale of the Series A Preferred Stock, after deducting underwriting discount and commissions, and the payment of expenses, were approximately $144.5 million. The net proceeds from the offering were used to fund the repurchase of common stock. Stock Repurchase Plans. From time to time, our board of directors has authorized stock repurchase plans. In general, stock repurchase plans allow us to proactively manage our capital position and return excess capital to shareholders. Shares purchased under such plans also provide us with shares of common stock necessary to satisfy obligations related to stock compensation awards. On October 24, 2017, our board of directors authorized a $150.0 million stock repurchase program, allowing us to repurchase shares of our common stock over a two-year period from time to time at various prices in the open market or through private transactions. No shares were repurchased under this plan during 2017. Under prior plans, we repurchased 1,134,966 shares at a total cost of $100.0 million during 2017 and 1,485,493 shares at a total cost of $100.0 million during 2015. Dividend Restrictions. In the ordinary course of business, Cullen/Frost is dependent upon dividends from Frost Bank to provide funds for the payment of dividends to shareholders and to provide for other cash requirements. Banking regulations may limit the amount of dividends that may be paid. Approval by regulatory authorities is required if the effect of dividends declared would cause the regulatory capital of Frost Bank to fall below specified minimum levels. Approval is also required if dividends declared exceed the net profits for that year combined with the retained net profits for the preceding two years. Under the foregoing dividend restrictions and while maintaining its “well capitalized” status, at December 31, 2017, Frost Bank could pay aggregate dividends of up to $544.8 million to Cullen/Frost without prior regulatory approval. Under the terms of the junior subordinated deferrable interest debentures that Cullen/Frost has issued to Cullen/Frost Capital Trust II and WNB Capital Trust I, Cullen/Frost has the right at any time during the term of the debentures to defer the payment of interest at any time or from time to time for an extension period not exceeding 20 consecutive quarterly periods with respect to each extension period. In the event that we have elected to defer interest on the debentures, we may not, with certain exceptions, declare or pay any dividends or distributions on our capital stock or purchase or acquire any of our capital stock. Under the terms of the Series A Preferred Stock, in the event that we do not declare and pay dividends on the Series A Preferred Stock for the most recent dividend period, we may not, with certain exceptions, declare or pay dividends on, or purchase, redeem or otherwise acquire, shares of our common stock or any of our securities that rank junior to the Series A Preferred Stock. |
Earnings Per Common Share |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Common Share | Earnings Per Common Share Earnings Per Common Share. Earnings per common share is computed using the two-class method. Basic earnings per common share is computed by dividing net earnings allocated to common stock by the weighted-average number of common shares outstanding during the applicable period, excluding outstanding participating securities. Participating securities include non-vested stock awards/stock units, deferred stock units and performance stock units (during the performance period), though no actual shares of common stock related to any type of stock unit have been issued. Non-vested stock awards/stock units and deferred stock units are considered participating securities because holders of these securities receive non-forfeitable dividends at the same rate as holders of our common stock. Holders of performance stock units receive dividend equivalent payments for dividends paid during the performance period at the vesting date of the award based upon the number of units that ultimately vest. Diluted earnings per common share is computed using the weighted-average number of shares determined for the basic earnings per common share computation plus the dilutive effect of stock compensation using the treasury stock method. The following table presents a reconciliation of net income available to common shareholders, net earnings allocated to common stock and the number of shares used in the calculation of basic and diluted earnings per common share.
|
Employee Benefit Plans |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefit Plans | Employee Benefit Plans Retirement Plans Profit Sharing Plans. The profit-sharing plan is a defined contribution retirement plan that covers employees who have completed at least one year of service and are age 21 or older. All contributions to the plan are made at our discretion and may be made without regard to current or accumulated profits. Contributions are allocated to eligible participants uniformly, based upon compensation, age and other factors. Plan participants self-direct the investment of allocated contributions by choosing from a menu of investment options. Account assets are subject to withdrawal restrictions and participants vest in their accounts after three years of service. We also maintain a separate non-qualified profit sharing plan for certain employees whose participation in the qualified profit sharing plan is limited. The plan offers such employees an alternative means of receiving comparable benefits. Expense related to these plans totaled $12.7 million in 2017, $11.6 million in 2016 and $11.3 million in 2015. Retirement Plan and Restoration Plan. We maintain a non-contributory defined benefit plan (the “Retirement Plan”) that was frozen as of December 31, 2001. The plan provides pension and death benefits to substantially all employees who were at least 21 years of age and had completed at least one year of service prior to December 31, 2001. Defined benefits are provided based on an employee’s final average compensation and years of service at the time the plan was frozen and age at retirement. The freezing of the plan provides that future salary increases will not be considered. Our funding policy is to contribute yearly, at least the amount necessary to satisfy the funding standards of the Employee Retirement Income Security Act (“ERISA”). Our Restoration of Retirement Income Plan (the “Restoration Plan”) provides benefits for eligible employees that are in excess of the limits under Section 415 of the Internal Revenue Code of 1986, as amended, that apply to the Retirement Plan. The Restoration Plan is designed to comply with the requirements of ERISA. The entire cost of the plan, which was also frozen as of December 31, 2001, is supported by our contributions. We use a December 31 measurement date for our defined benefit plans. Combined activity in our defined benefit pension plans was as follows:
Certain disaggregated information related to our defined benefit pension plans as of year-end was as follows:
The components of the combined net periodic cost (benefit) for our defined benefit pension plans are presented in the table below. Supplemental executive retirement plan (“SERP”) settlement costs were related to the retirement of a former executive officer.
As of December 31, 2015, we changed the method we use to estimate the interest cost component of net periodic benefit cost for our defined benefit pension and other post-retirement benefit plans. Prior to the change, we estimated the interest cost component utilizing a single weighted-average discount rate derived from the yield curve used to measure our projected benefit obligation. Under the new method, we utilize a full yield curve approach in the estimation of the interest cost component by applying the specific annual spot rates along the yield curve used in the measurement of our projected benefit obligation to the relevant projected cash flows. We view the full yield curve method as more representationally faithful of effective settlement rates as the interest cost component of the net periodic cost is measured more precisely, reflecting the difference in the timing of future benefit payment cash flows. This new method constituted a change in an accounting estimate that was inseparable from a change in accounting principle and was accounted for prospectively, with the resulting change impacting the recognition of net periodic benefit cost beginning January 1, 2016. Amounts related to our defined benefit pension plans recognized as a component of other comprehensive income were as follows:
Amounts recognized as a component of accumulated other comprehensive loss as of year-end that have not been recognized as a component of the combined net period benefit cost of our defined benefit pension plans are presented in the following table. We expect to recognize approximately $5.0 million of the net actuarial loss reported in the following table as of December 31, 2017 as a component of net periodic benefit cost during 2018.
The weighted-average assumptions used to determine the benefit obligations as of the end of the years indicated and the net periodic benefit cost for the years indicated are presented in the table below. Because the plans were frozen, increases in compensation are not considered after 2001.
Management uses an asset allocation optimization model to analyze the potential risks and rewards associated with various asset allocation strategies on a quarterly basis. As of December 31, 2017, management’s investment objective for our defined benefit plans is to achieve long-term growth. This strategy provides for a target asset allocation of approximately 65% invested in equity securities, approximately 32% invested in fixed income debt securities with any remainder invested in cash or short-term cash equivalents. The modeling process calculates, with a 90% confidence ratio, the potential risk associated with a given asset allocation and helps achieve adequate diversification of investment assets. The plan assets are reviewed annually to determine if the obligations can be met with the current investment mix and funding strategy. The major categories of assets in our Retirement Plan as of year-end are presented in the following table. Assets are segregated by the level of the valuation inputs within the fair value hierarchy established by ASC Topic 820 “Fair Value Measurements and Disclosures,” utilized to measure fair value (see Note 17 - Fair Value Measurements). Our Restoration Plan is unfunded.
Mutual funds include various equity, fixed-income and blended funds with varying investment strategies. Approximately 65% of mutual fund investments consist of equity investments as of December 31, 2017. The investment objective of equity funds is long-term capital appreciation with current income. The remaining mutual fund investments consist of U.S. fixed-income securities, including investment-grade U.S. Treasury securities, U.S. government agency securities and mortgage-backed securities, corporate bonds and notes and collateralized mortgage obligations. The investment objective of fixed-income funds is to maximize investment return while preserving investment principal. U.S. government agency securities include obligations of Ginnie Mae. Our investment strategies prohibit selling assets short and the use of derivatives. Additionally, our defined benefit plans do not directly invest in real estate, commodities, or private investments. The asset allocation optimization model is used to estimate the expected long-term rate of return for a given asset allocation strategy. Expectations of returns for each asset class are based on comprehensive reviews of historical data and economic/financial market theory. During periods with volatile interest rates and equity security prices, the model may call for changes in the allocation of plan investments to achieve desired returns. Management assumed a long-term rate of return of 7.25% in the determination of the net periodic benefit cost for 2017. The expected long-term rate of return on assets was selected from within the reasonable range of rates determined by historical real returns, net of inflation, for the asset classes covered by the plan’s investment policy and projections of inflation over the long-term period during which benefits are payable to plan participants. As of December 31, 2017, expected future benefit payments related to our defined benefit plans were as follows:
We expect to contribute $1.1 million to the defined benefit plans during 2018. Supplemental Executive Retirement Plan. We maintained a supplemental executive retirement plan (“SERP”) for one key executive who retired in 2016. The plan provided for target retirement benefits, as a percentage of pay, beginning at age 55. The target percentage was 45 percent of pay at age 55, increasing to 60 percent at age 60 and later. Benefits under the SERP were reduced, dollar-for-dollar, by benefits received under the profit sharing, non-qualified profit sharing, defined benefit retirement and restoration plans, described above, and any social security benefits. Settlement costs related to the SERP during 2016 are reported as a component of net periodic pension expense, detailed above. Savings Plans 401(k) Plan and Thrift Incentive Plan. We maintain a 401(k) stock purchase plan that permits each participant to make before- or after-tax contributions in an amount not less than 2% and not exceeding 50% of eligible compensation and subject to dollar limits from Internal Revenue Service regulations. We match 100% of the employee’s contributions to the plan based on the amount of each participant’s contributions up to a maximum of 6% of eligible compensation. Eligible employees must complete 90 days of service in order to enroll and vest in our matching contributions immediately. Expense related to the plan totaled $14.3 million in 2017, $13.6 million in 2016, and $13.3 million in 2015. Our matching contribution is initially invested in the Cullen/Frost common stock fund. However, employees may immediately reallocate our matching portion, as well as invest their individual contribution, to any of a variety of investment alternatives offered under the 401(k) Plan. We maintain a thrift incentive stock purchase plan to offer certain employees whose participation in the 401(k) plan is limited an alternative means of receiving comparable benefits. Expense related to this plan was not significant during 2017, 2016 and 2015. Stock Compensation Plans We have three active stock compensation plans (the 2005 Omnibus Incentive Plan, the 2007 Outside Directors Incentive Plan and the 2015 Omnibus Incentive Plan). All of the plans have been approved by our shareholders. During 2015, the 2015 Omnibus Incentive Plan (“2015 Plan”) was established to replace both the 2005 Omnibus Incentive Plan (“2005 Plan”) and the 2007 Outside Directors Incentive Plan (the “2007 Directors Plan”). All remaining shares authorized for grant under the superseded 2005 Plan and 2007 Directors Plan were transferred to the 2015 Plan. Our stock compensation plans were established to (i) motivate superior performance by means of performance-related incentives, (ii) encourage and provide for the acquisition of an ownership interest in our company by employees and non-employee directors and (iii) enable us to attract and retain qualified and competent persons as employees and to serve as members of our board of directors. Under the 2015 Plan, we may grant, among other things, nonqualified stock options, incentive stock options, stock awards, stock appreciation rights, restricted stock units, performance share units or any combination thereof to certain employees and non-employee directors. Any of the authorized shares may be used for any type of award allowable under the Plan. The Compensation and Benefits Committee (“Committee”) of our Board of Directors has sole authority to (i) establish the awards to be issued, (ii) select the employees and non-employee directors to receive awards, and (iii) approve the terms and conditions of each award contract. Each award under the stock plans is evidenced by an award agreement that specifies the award price, the duration of the award, the number of shares to which the award pertains, and such other provisions as the Committee determines. For stock options, the option price for each grant is at least equal to the fair market value of a share of Cullen/Frost’s common stock on the date of grant. Options granted expire at such time as the Committee determines at the date of grant and in no event does the exercise period exceed a maximum of ten years. As defined in the plans, outstanding awards may immediately vest upon a change-in-control of Cullen/Frost and, in the case of awards granted under the 2015 Plan, subsequent termination resulting from the change in control. A combined summary of activity in our active stock plans is presented in the table. Performance stock units outstanding are presented assuming attainment of the maximum payout rate as set forth by the performance criteria. The target award level for performance stock units granted in 2017 and 2016 was 24,162 and 29,240, respectively. As of December 31, 2017, there were 1,367,750 shares remaining available for grant for future awards.
Options awarded to employees generally have a ten-year life and vest in equal annual installments over a four-year period. Non-vested stock awards/stock units awarded to employees generally have a four-year-cliff vesting period. No options were awarded to non-employee directors during the reported periods. Deferred stock units awarded to non-employee directors generally have immediate vesting. Upon retirement from our board of directors, non-employee directors will receive one share of our common stock for each deferred stock unit held. Outstanding non-vested stock units and deferred stock units receive equivalent dividend payments as such dividends are declared on our common stock. Performance stock units represent shares potentially issuable in the future. Issuance is based upon the measure of our achievement of relative return on assets over a three-year performance period compared to an identified peer group's achievement of relative return on assets over the same three-year performance period. The ultimate number of shares issuable under each performance award is the product of the award target and the award payout percentage for the given level of achievement. The level of achievement is measured as the percentile rank of relative return on assets among the peer group. The award payout percentages by level of achievement are as follows: (i) less than 25th percentile pays out at 0% of target, (ii) 25th percentile pays out at 50% of target, (iii) 50th percentile pays out at 100% of target and (iv) 75th percentile or more pays out at 150% of target. Achievement between the aforementioned percentiles will result in an award payout percentage determined based on straight-line interpolation between the percentiles. Performance stock units are eligible to receive equivalent dividend payments as such dividends are declared on our common stock during the performance period. Equivalent dividend payments are based upon the ultimate number of shares issued under each performance award and are deferred until such time that the units vest and shares are issued. Other information regarding options outstanding and exercisable as of December 31, 2017 is as follows:
The total intrinsic value of outstanding in-the-money stock options and outstanding in-the-money exercisable stock options was $91.3 million and $75.8 million at December 31, 2017. Shares issued in connection with stock compensation awards are issued from available treasury shares. If no treasury shares are available, new shares are issued from available authorized shares. Shares issued in connection with stock compensation awards along with other related information were as follows:
Stock-based Compensation Expense. Stock-based compensation expense is recognized ratably over the requisite service period for all awards. For most stock option awards, the service period generally matches the vesting period. For stock options granted to certain executive officers and for non-vested stock units granted to all participants, the service period does not extend past the date the participant reaches 65 years of age. Deferred stock units granted to non-employee directors generally have immediate vesting and the related expense is fully recognized on the date of grant. For performance stock units, the service period generally matches the three-year performance period specified by the award, however, the service period does not extend past the date the participant reaches 65 years of age. Expense recognized each period is dependent upon our estimate of the number of shares that will ultimately be issued. Stock-based compensation expense and the related income tax benefit is presented in the following table. The service period for performance stock units granted each year begins on January 1 of the following year.
Unrecognized stock-based compensation expense and the weighted-average period over which the expense is expected to be recognized at December 31, 2017 is presented in the table below. Unrecognized stock-based compensation expense related to performance stock units is presented assuming attainment of the maximum payout rate as set forth by the performance criteria.
Valuation of Stock-Based Compensation. For the purposes of recognizing stock-based compensation expense, the fair value of non-vested stock awards/stock units and deferred stock units is the market price of the stock on the measurement date, which, for us, is the date of the award. The fair value of performance stock units is determined in a similar manner except that the market price of the stock on the measurement date is discounted by the present value of the dividends expected to be paid on our common stock during the service period of the award because dividend equivalent payments on performance stock units are deferred until such time that the units vest and shares are issued. In applying this discount to the market price of our stock on the measurement date, we assumed we would pay a flat quarterly dividend during the service period equal to our most recent dividend payment, which was $0.57 in 2017 and $0.54 in 2016, discounted at a weighted-average risk-free rate of 1.7% in 2017 and 1.0% in 2016. The fair value of employee stock options granted is estimated on the measurement date, which, for us, is the date of grant. The fair value of stock options is estimated using a binomial lattice-based valuation model that takes into account employee exercise patterns based on changes in our stock price and other variables, and allows for the use of dynamic assumptions about interest rates and expected volatility. No stock options were granted during 2017 or 2016. The weighted-average fair value of stock options granted during 2015, estimated using a binomial lattice-based valuation model, was $10.23. The assumptions used to determine the fair value of options granted in 2015 included (i) weighted-average risk free rate of 2.05%, (ii) dividend yield of 3.02%, (iii) weighted-average expected market price volatility of 26.48% and (iv) weighted-average expected term of 5.7 years. Expected volatility is based on the short-term historical volatility (estimated over the most recent two years) and the long-term historical volatility (estimated over a period at least equal to the contractual term of the options) of our stock, and other factors. A variance targeting methodology is utilized to estimate the convergence, or mean reversion, from short-term to long-term volatility within the model. In estimating the fair value of stock options under the binomial lattice-based valuation model, separate groups of employees that have similar historical exercise behavior are considered separately. The expected term of options granted is derived using a regression model and represents the period of time that options granted are expected to be outstanding. Certain groups of employees exhibit different behavior. |
Other Non-Interest Income and Expense |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Non-Interest Income and Expense | Other Non-Interest Income and Expense Other non-interest income and expense totals are presented in the following tables. Components of these totals exceeding 1% of the aggregate of total net interest income and total non-interest income for any of the years presented are stated separately.
|
Income Taxes |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes Income tax expense was as follows:
A reconciliation between reported income tax expense and the amounts computed by applying the U.S. federal statutory income tax rate of 35% to income before income taxes is presented in the following table.
Income tax expense for 2017 was impacted by the adjustment of our deferred tax assets and liabilities related to the reduction in the U.S. federal statutory income tax rate to 21% under the Tax Cuts and Jobs Act, which was enacted on December 22, 2017. As a result of the new law, which is more fully discussed below, we recognized a provisional net tax benefit totaling $4.0 million, as detailed in the table above. Income tax expense for 2017 was also impacted by the correction of an over-accrual of taxes that resulted from incorrectly classifying certain tax-exempt loans as taxable for federal income tax purposes since 2013. As a result, we recognized tax benefits totaling $2.9 million related to the 2013 through 2016 tax years, as detailed in the table above. During 2016, we adopted a new accounting standard that requires the income tax effects associated with stock-based compensation to be recognized as a component of income tax expense. We recognized net tax benefits related to stock-based compensation totaling $9.1 million in 2017 and $5.1 million in 2016, as detailed in the table above. See Note 1 - Significant Accounting Policies for additional information related to the accounting for the income tax effects of stock-based compensation. There were no unrecognized tax benefits during any of the reported periods. Interest and/or penalties related to income taxes are reported as a component of income tax expense. Such amounts were not significant during the reported periods. Year-end deferred taxes are presented in the table below. As a result of the Tax Cuts and Jobs Act enacted on December 22, 2017 (discussed below), deferred taxes as of December 31, 2017 are based on the newly enacted U.S. statutory federal income tax rate of 21%. Deferred taxes as of December 31, 2016 are based on the previously enacted U.S. statutory federal income tax rate of 35%.
No valuation allowance for deferred tax assets was recorded at December 31, 2017 and 2016 as management believes it is more likely than not that all of the deferred tax assets will be realized against deferred tax liabilities and projected future taxable income. There were no unrecognized tax benefits during any of the reported periods. We file income tax returns in the U.S. federal jurisdiction. We are no longer subject to U.S. federal income tax examinations by tax authorities for years before 2014. Tax Cuts and Jobs Act. The Tax Cuts and Jobs Act was enacted on December 22, 2017. Among other things, the new law (i) establishes a new, flat corporate federal statutory income tax rate of 21%, (ii) eliminates the corporate alternative minimum tax and allows the use of any such carryforwards to offset regular tax liability for any taxable year, (iii) limits the deduction for net interest expense incurred by U.S. corporations, (iv) allows businesses to immediately expense, for tax purposes, the cost of new investments in certain qualified depreciable assets, (v) eliminates or reduces certain deductions related to meals and entertainment expenses, (vi) modifies the limitation on excessive employee remuneration to eliminate the exception for performance-based compensation and clarifies the definition of a covered employee and (vii) limits the deductibility of deposit insurance premiums. The Tax Cuts and Jobs Act also significantly changes U.S. tax law related to foreign operations, however, such changes do not currently impact us. As stated above, as a result of the enactment of the Tax Cuts and Jobs Act on December 22, 2017, we remeasured our deferred tax assets and liabilities based upon the newly enacted U.S. statutory federal income tax rate of 21%, which is the tax rate at which these assets and liabilities are expected to reverse in the future. Notwithstanding the foregoing, we are still analyzing certain aspects of the new law and refining our calculations, which could affect the measurement of these assets and liabilities or give rise to new deferred tax amounts. Nonetheless, we recognized a provisional net tax benefit related to the remeasurement of our deferred tax assets and liabilities totaling $4.0 million. |
Other Comprehensive Income (Loss) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) The tax effects allocated to each component of other comprehensive income (loss) were as follows:
Activity in accumulated other comprehensive income, net of tax, was as follows:
|
Derivative Financial Instruments |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments The fair value of derivative positions outstanding is included in accrued interest receivable and other assets and accrued interest payable and other liabilities in the accompanying consolidated balance sheets and in the net change in each of these financial statement line items in the accompanying consolidated statements of cash flows. Interest Rate Derivatives. We utilize interest rate swaps, caps and floors to mitigate exposure to interest rate risk and to facilitate the needs of our customers. Our objectives for utilizing these derivative instruments are described below: We have entered into certain interest rate swap contracts that are matched to specific fixed-rate commercial loans or leases that we have entered into with our customers. These contracts have been designated as hedging instruments to hedge the risk of changes in the fair value of the underlying commercial loan/lease due to changes in interest rates. The related contracts are structured so that the notional amounts reduce over time to generally match the expected amortization of the underlying loan/lease. We have entered into certain interest rate swap, cap and floor contracts that are not designated as hedging instruments. These derivative contracts relate to transactions in which we enter into an interest rate swap, cap and/or floor with a customer while at the same time entering into an offsetting interest rate swap, cap and/or floor with a third-party financial institution. In connection with each swap transaction, we agree to pay interest to the customer on a notional amount at a variable interest rate and receive interest from the customer on a similar notional amount at a fixed interest rate. At the same time, we agree to pay a third-party financial institution the same fixed interest rate on the same notional amount and receive the same variable interest rate on the same notional amount. The transaction allows our customer to effectively convert a variable rate loan to a fixed rate. Because we act as an intermediary for our customer, changes in the fair value of the underlying derivative contracts for the most part offset each other and do not significantly impact our results of operations. The notional amounts and estimated fair values of interest rate derivative contracts outstanding at December 31, 2017 and 2016 are presented in the following table. The fair values of interest rate derivative contracts are estimated utilizing internal valuation models with observable market data inputs, or as determined by the Chicago Mercantile Exchange (“CME”) for centrally cleared derivative contracts. Beginning in 2017, CME rules legally characterize variation margin payments for centrally cleared derivatives as settlements of the derivatives' exposure rather than collateral. As a result, the variation margin payment and the related derivative instruments are considered a single unit of account for accounting and financial reporting purposes. Variation margin, as determined by the CME, is settled daily. As a result, derivative contracts that clear through the CME have an estimated fair value of zero as of December 31, 2017.
The weighted-average rates paid and received for interest rate swaps outstanding at December 31, 2017 were as follows:
The weighted-average strike rate for outstanding interest rate caps was 3.07% at December 31, 2017. Commodity Derivatives. We enter into commodity swaps and option contracts that are not designated as hedging instruments primarily to accommodate the business needs of our customers. Upon the origination of a commodity swap or option contract with a customer, we simultaneously enter into an offsetting contract with a third party financial institution to mitigate the exposure to fluctuations in commodity prices. The notional amounts and estimated fair values of non-hedging commodity swap and option derivative positions outstanding are presented in the following table. We obtain dealer quotations and use internal valuation models with observable market data inputs to value our commodity derivative positions.
Foreign Currency Derivatives. We enter into foreign currency forward contracts that are not designated as hedging instruments primarily to accommodate the business needs of our customers. Upon the origination of a foreign currency denominated transaction with a customer, we simultaneously enter into an offsetting contract with a third party financial institution to negate the exposure to fluctuations in foreign currency exchange rates. We also utilize foreign currency forward contracts that are not designated as hedging instruments to mitigate the economic effect of fluctuations in foreign currency exchange rates on foreign currency holdings and certain short-term, non-U.S. dollar denominated loans. The notional amounts and fair values of open foreign currency forward contracts were as follows:
Gains, Losses and Derivative Cash Flows. For fair value hedges, the changes in the fair value of both the derivative hedging instrument and the hedged item are included in other non-interest income or other non-interest expense. The extent that such changes in fair value do not offset represents hedge ineffectiveness. Net cash flows from interest rate swaps on commercial loans/leases designated as hedging instruments in effective hedges of fair value are included in interest income on loans. For non-hedging derivative instruments, gains and losses due to changes in fair value and all cash flows are included in other non-interest income and other non-interest expense. Amounts included in the consolidated statements of income related to interest rate derivatives designated as hedges of fair value were as follows:
As stated above, we enter into non-hedge related derivative positions primarily to accommodate the business needs of our customers. Upon the origination of a derivative contract with a customer, we simultaneously enter into an offsetting derivative contract with a third party financial institution. We recognize immediate income based upon the difference in the bid/ask spread of the underlying transactions with our customers and the third party. Because we act only as an intermediary for our customer, subsequent changes in the fair value of the underlying derivative contracts for the most part offset each other and do not significantly impact our results of operations. Amounts included in the consolidated statements of income related to non-hedging interest rate, commodity and foreign currency derivative instruments are presented in the table below.
Counterparty Credit Risk. Derivative contracts involve the risk of dealing with both bank customers and institutional derivative counterparties and their ability to meet contractual terms. Institutional counterparties must have an investment grade credit rating and be approved by our Asset/Liability Management Committee. Our credit exposure on interest rate swaps is limited to the net favorable value and interest payments of all swaps by each counterparty, while our credit exposure on commodity swaps/options and foreign currency forward contracts is limited to the net favorable value of all contracts by each counterparty. Credit exposure may be reduced by the amount of collateral pledged by the counterparty. There are no credit-risk-related contingent features associated with any of our derivative contracts. Certain derivative contracts with upstream financial institution counterparties may be terminated with respect to a party in the transaction, if such party does not have at least a minimum level rating assigned to either its senior unsecured long-term debt or its deposit obligations by certain third-party rating agencies. Our credit exposure relating to interest rate swaps, commodity swaps/options and foreign currency forward contracts with bank customers was approximately $30.8 million at December 31, 2017. This credit exposure is partly mitigated as transactions with customers are generally secured by the collateral, if any, securing the underlying transaction being hedged. Our credit exposure, net of collateral pledged, relating to interest rate swaps, commodity swaps/options and foreign currency forward contracts with upstream financial institution counterparties was approximately $7.6 million at December 31, 2017. This amount was primarily related to excess collateral we posted to counterparties. Collateral levels for upstream financial institution counterparties are monitored and adjusted as necessary. See Note 16 – Balance Sheet Offsetting and Repurchase Agreements for additional information regarding our credit exposure with upstream financial institution counterparties. The aggregate fair value of securities we posted as collateral related to derivative contracts totaled $10.7 million at December 31, 2017. At such date, we also had $19.6 million in cash collateral on deposit with other financial institution counterparties. |
Balance Sheet Offsetting |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Offsetting | Balance Sheet Offsetting and Repurchase Agreements Balance Sheet Offsetting. Certain financial instruments, including resell and repurchase agreements and derivatives, may be eligible for offset in the consolidated balance sheet and/or subject to master netting arrangements or similar agreements. Our derivative transactions with upstream financial institution counterparties are generally executed under International Swaps and Derivative Association (“ISDA”) master agreements which include “right of set-off” provisions. In such cases there is generally a legally enforceable right to offset recognized amounts and there may be an intention to settle such amounts on a net basis. Nonetheless, we do not generally offset such financial instruments for financial reporting purposes. Information about financial instruments that are eligible for offset in the consolidated balance sheet as of December 31, 2017 is presented in the following tables.
Information about financial instruments that are eligible for offset in the consolidated balance sheet as of December 31, 2016 is presented in the following tables.
Repurchase Agreements. We utilize securities sold under agreements to repurchase to facilitate the needs of our customers and to facilitate secured short-term funding needs. Securities sold under agreements to repurchase are stated at the amount of cash received in connection with the transaction. We monitor collateral levels on a continuous basis. We may be required to provide additional collateral based on the fair value of the underlying securities. Securities pledged as collateral under repurchase agreements are maintained with our safekeeping agents. The remaining contractual maturity of repurchase agreements in the consolidated balance sheets as of December 31, 2017 and December 31, 2016 is presented in the following tables.
|
Fair Value Measurements |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements The fair value of an asset or liability is the price that would be received to sell that asset or paid to transfer that liability in an orderly transaction occurring in the principal market (or most advantageous market in the absence of a principal market) for such asset or liability. In estimating fair value, we utilize valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. Such valuation techniques are consistently applied. Inputs to valuation techniques include the assumptions that market participants would use in pricing an asset or liability. ASC Topic 820 establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows:
In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality and our creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. Our valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes our valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Furthermore, the reported fair value amounts have not been comprehensively revalued since the presentation dates, and therefore, estimates of fair value after the balance sheet date may differ significantly from the amounts presented herein. A more detailed description of the valuation methodologies used for assets and liabilities measured at fair value is set forth below. Transfers between levels of the fair value hierarchy are recognized on the actual date of the event or circumstances that caused the transfer, which generally coincides with our monthly and/or quarterly valuation process. Financial Assets and Financial Liabilities: Financial assets and financial liabilities measured at fair value on a recurring basis include the following: Securities Available for Sale. U.S. Treasury securities are reported at fair value utilizing Level 1 inputs. Other securities classified as available for sale are reported at fair value utilizing Level 2 inputs. For these securities, we obtain fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. We review the prices supplied by the independent pricing service, as well as their underlying pricing methodologies, for reasonableness and to ensure such prices are aligned with traditional pricing matrices. In general, we do not purchase investment portfolio securities that are esoteric or that have a complicated structure. Our entire portfolio consists of traditional investments, nearly all of which are U.S. Treasury obligations, federal agency bullet or mortgage pass-through securities, or general obligation or revenue based municipal bonds. Pricing for such instruments is fairly generic and is easily obtained. From time to time, we will validate prices supplied by the independent pricing service by comparison to prices obtained from third-party sources or derived using internal models. Trading Securities. U.S. Treasury securities and exchange-listed common stock are reported at fair value utilizing Level 1 inputs. Other securities classified as trading are reported at fair value utilizing Level 2 inputs in the same manner as described above for securities available for sale. Derivatives. Derivatives are generally reported at fair value utilizing Level 2 inputs, except for foreign currency contracts, which are reported at fair value utilizing Level 1 inputs. We obtain dealer quotations and utilize internally developed valuation models to value commodity swaps/options. We utilize internally developed valuation models and/or third-party models with observable market data inputs to validate the valuations provided by the dealers. Though there has never been a significant discrepancy in the valuations, should such a significant discrepancy arise, we would obtain price verification from a third-party dealer. We utilize internal valuation models with observable market data inputs to estimate fair values of customer interest rate swaps, caps and floors. We also obtain dealer quotations for these derivatives for comparative purposes to assess the reasonableness of the model valuations. In cases where significant credit valuation adjustments are incorporated into the estimation of fair value, reported amounts are considered to have been derived utilizing Level 3 inputs. For purposes of potential valuation adjustments to our derivative positions, we evaluate the credit risk of our counterparties as well as ours. Accordingly, we have considered factors such as the likelihood of our default and the default of our counterparties, our net exposures and remaining contractual life, among other things, in determining if any fair value adjustments related to credit risk are required. Counterparty exposure is evaluated by netting positions that are subject to master netting arrangements, as well as considering the amount of collateral securing the position. We review our counterparty exposure on a regular basis, and, when necessary, appropriate business actions are taken to adjust the exposure. We also utilize this approach to estimate our own credit risk on derivative liability positions. To date, we have not realized any significant losses due to a counterparty’s inability to pay any net uncollateralized position. The change in value of derivative assets and derivative liabilities attributable to credit risk was not significant during the reported periods. The following tables summarize financial assets and financial liabilities measured at fair value on a recurring basis as of December 31, 2017 and 2016, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:
Derivative assets, measured at fair value on a recurring basis using significant unobservable (Level 3) inputs during the reported periods consist of commodity swaps sold to loan customers. The significant unobservable (Level 3) inputs used in the fair value measurement of these commodity swaps sold to loan customers primarily relate to the probability of default and loss severity in the event of default. The probability of default is determined by the underlying risk grade of the loan (see Note 3 – Loans) underlying the commodity swap in that the probability of default increases as a loan’s risk grade deteriorates, while the loss severity is estimated through an analysis of the collateral supporting both the underlying loan and commodity swap. Generally, a change in the assumption used for the probability of default is accompanied by a directionally similar change in the assumption used for the loss severity. As of December 31, 2017, 2017, the weighted-average risk grade of loans underlying commodity swaps measured at fair value using significant unobservable (Level 3) inputs was 12.0. The weighted-average loss severity in the event of default on the commodity swaps was 15.4%. A reconciliation of the beginning and ending balances of derivative assets measured at fair value on a recurring basis using significant unobservable (Level 3) inputs is not presented as such amounts were not significant during the reported periods. Certain financial assets and financial liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). Financial assets measured at fair value on a non-recurring basis during the reported periods include certain impaired loans reported at the fair value of the underlying collateral if repayment is expected solely from the collateral. Collateral values are estimated using Level 2 inputs based on observable market data, typically in the case of real estate collateral, or Level 3 inputs based on customized discounting criteria, typically in the case of non-real estate collateral such as inventory, accounts receivable, equipment or other business assets. During the reported periods, all fair value measurements for impaired loans utilized Level 3 inputs. The following table presents impaired loans that were remeasured and reported at fair value through a specific valuation allowance allocation of the allowance for loan losses based upon the fair value of the underlying collateral:
Non-Financial Assets and Non-Financial Liabilities: We do not have any non-financial assets or non-financial liabilities measured at fair value on a recurring basis. Certain non-financial assets measured at fair value on a non-recurring basis include foreclosed assets (upon initial recognition or subsequent impairment), non-financial assets and non-financial liabilities measured at fair value in the second step of a goodwill impairment test, and intangible assets and other non-financial long-lived assets measured at fair value for impairment assessment. Non-financial assets measured at fair value on a non-recurring basis during the reported periods include certain foreclosed assets which, upon initial recognition, were remeasured and reported at fair value through a charge-off to the allowance for loan losses and certain foreclosed assets which, subsequent to their initial recognition, were remeasured at fair value through a write-down included in other non-interest expense. The fair value of a foreclosed asset is estimated using Level 2 inputs based on observable market data or Level 3 inputs based on customized discounting criteria. During the reported periods, all fair value measurements for foreclosed assets utilized Level 2 inputs. The following table presents foreclosed assets that were remeasured and reported at fair value:
Charge-offs recognized upon loan foreclosures are generally offset by general or specific allocations of the allowance for loan losses and generally do not, and did not during the reported periods, significantly impact our provision for loan losses. Regulatory guidelines require us to reevaluate the fair value of other real estate owned on at least an annual basis. While our policy is to comply with the regulatory guidelines, our general practice is to reevaluate the fair value of collateral supporting impaired collateral dependent loans on a quarterly basis. Thus, appraisals are generally not considered to be outdated, and we typically do not make any adjustments to the appraised values. ASC Topic 825, “Financial Instruments,” requires disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis. The estimated fair value approximates carrying value for cash and cash equivalents, accrued interest and the cash surrender value of life insurance policies. The methodologies for other financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis are discussed below: Loans. The estimated fair value approximates carrying value for variable-rate loans that reprice frequently and with no significant change in credit risk. The fair value of fixed-rate loans and variable-rate loans which reprice on an infrequent basis is estimated by discounting future cash flows using the current interest rates at which similar loans with similar terms would be made to borrowers of similar credit quality. An overall valuation adjustment is made for specific credit risks as well as general portfolio credit risk. Deposits. The estimated fair value approximates carrying value for demand deposits. The fair value of fixed-rate deposit liabilities with defined maturities is estimated by discounting future cash flows using the interest rates currently offered for deposits of similar remaining maturities. The estimated fair value of deposits does not take into account the value of our long-term relationships with depositors, commonly known as core deposit intangibles, which are separate intangible assets, and not considered financial instruments. Nonetheless, we would likely realize a core deposit premium if our deposit portfolio were sold in the principal market for such deposits. Borrowed Funds. The estimated fair value approximates carrying value for short-term borrowings. The fair value of long-term fixed-rate borrowings is estimated using quoted market prices, if available, or by discounting future cash flows using current interest rates for similar financial instruments. The estimated fair value approximates carrying value for variable-rate junior subordinated deferrable interest debentures that reprice quarterly. Loan Commitments, Standby and Commercial Letters of Credit. Our lending commitments have variable interest rates and “escape” clauses if the customer’s credit quality deteriorates. Therefore, the fair values of these items are not significant and are not included in the following table. The estimated fair values of financial instruments that are reported at amortized cost in our consolidated balance sheets, segregated by the level of valuation inputs within the fair value hierarchy utilized to measure fair value, were as follows:
Under ASC Topic 825, entities may choose to measure eligible financial instruments at fair value at specified election dates. The fair value measurement option (i) may be applied instrument by instrument, with certain exceptions, (ii) is generally irrevocable and (iii) is applied only to entire instruments and not to portions of instruments. Unrealized gains and losses on items for which the fair value measurement option has been elected must be reported in earnings at each subsequent reporting date. During the reported periods, we had no financial instruments measured at fair value under the fair value measurement option. |
Operating Segments |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Segments | Operating Segments We are managed under a matrix organizational structure whereby our two primary operating segments, Banking and Frost Wealth Advisors, overlap a regional reporting structure. The regions are primarily based upon geographic location and include Austin, Corpus Christi, Dallas, Fort Worth, Houston, Permian Basin, Rio Grande Valley, San Antonio and Statewide. We are primarily managed based on the line of business structure. In that regard, all regions have the same lines of business, which have the same product and service offerings, have similar types and classes of customers and utilize similar service delivery methods. Pricing guidelines for products and services are the same across all regions. The regional reporting structure is primarily a means to scale the lines of business to provide a local, community focus for customer relations and business development. Banking and Frost Wealth Advisors are delineated by the products and services that each segment offers. The Banking operating segment includes both commercial and consumer banking services, Frost Insurance Agency and, prior to June 30, 2015, Frost Securities. Commercial banking services are provided to corporations and other business clients and include a wide array of lending and cash management products. Consumer banking services include direct lending and depository services. Frost Insurance Agency provides insurance brokerage services to individuals and businesses covering corporate and personal property and casualty products, as well as group health and life insurance products. Frost Securities, Inc. provided advisory and private equity services to middle market companies. The operations of Frost Securities were discontinued and the entity was closed effective June 30, 2015. The Frost Wealth Advisors operating segment includes fee-based services within private trust, retirement services, and financial management services, including personal wealth management and securities brokerage services. A third operating segment, Non-Banks, is for the most part the parent holding company, as well as certain other insignificant non-bank subsidiaries of the parent that, for the most part, have little or no activity. The parent company’s principal activities include the direct and indirect ownership of our banking and non-banking subsidiaries and the issuance of debt and equity. Our principal source of revenue is dividends from our subsidiaries. The accounting policies of each reportable segment are the same as those of our consolidated entity except for the following items, which impact the Banking and Frost Wealth Advisors segments: (i) expenses for consolidated back-office operations and general overhead-type expenses such as executive administration, accounting and internal audit are allocated to operating segments based on estimated uses of those services, (ii) income tax expense for the individual segments is calculated essentially at the statutory rate, and (iii) the parent company records the tax expense or benefit necessary to reconcile to the consolidated total. We use a match-funded transfer pricing process to assess operating segment performance. The process helps us to (i) identify the cost or opportunity value of funds within each business segment, (ii) measure the profitability of a particular business segment by relating appropriate costs to revenues, (iii) evaluate each business segment in a manner consistent with its economic impact on consolidated earnings, and (iv) enhance asset and liability pricing decisions. Financial results by operating segment are detailed below. Certain prior period amounts have been reclassified to conform to the current presentation. Frost Wealth Advisors excludes off balance sheet managed and custody assets with a total fair value of $32.8 billion, $29.3 billion and $30.7 billion at December 31, 2017, 2016 and 2015.
|
Condensed Financial Statements of Parent Company |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Financial Statements of Parent Company | Condensed Financial Statements of Parent Company Condensed financial statements pertaining only to Cullen/Frost Bankers, Inc. are presented below. Investments in subsidiaries are stated using the equity method of accounting. Condensed Balance Sheets
Condensed Statements of Income
Condensed Statements of Cash Flows
|
Accounting Standards Updates |
12 Months Ended |
---|---|
Dec. 31, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Accounting Standards Updates | Accounting Standards Updates Accounting Standards Update (ASU) 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 implements a common revenue standard that clarifies the principles for recognizing revenue. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract and (v) recognize revenue when (or as) the entity satisfies a performance obligation. Our revenue is comprised of net interest income on financial assets and financial liabilities, which is explicitly excluded from the scope of ASU 2014-09, and non-interest income. ASU 2014-09 will require us to change how we recognize certain recurring revenue streams within trust and investment management fees, insurance commissions and fees and other insignificant components of non-interest income; however, these changes will not have a significant impact on our financial statements. ASU 2014-09 will be effective for us on January 1, 2018 using a modified retrospective transition approach and will not have a significant impact on our financial statements. ASU 2016-01, “Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities." ASU 2016-01, among other things, (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (v) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, (vi) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and (viii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities. ASU 2016-01 will be effective for us on January 1, 2018 and will not have a significant impact on our financial statements. ASU 2016-02, “Leases (Topic 842).” ASU 2016-02 will, among other things, require lessees to recognize a lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. ASU 2016-02 does not significantly change lease accounting requirements applicable to lessors; however, certain changes were made to align, where necessary, lessor accounting with the lessee accounting model and ASC Topic 606, “Revenue from Contracts with Customers.” ASU 2016-02 will be effective for us on January 1, 2019 and will require transition using a modified retrospective approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. Notwithstanding the foregoing, in January 2018, the Financial Accounting Standards Board issued a proposal to provide an additional transition method that would allow entities to not apply the guidance in ASU 2016-02 in the comparative periods presented in the financial statements and instead recognized a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. We are currently evaluating the potential impact of ASU 2016-02 on our financial statements. In that regard, we have selected, and will soon implement, a third-party vendor solution to assist us in the application of ASU 2016-02. ASU 2016-05,“Derivatives and Hedging (Topic 815) Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships.” ASU 2016-05 clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under ASC Topic 815 does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. ASU 2016-05 became effective for us on January 1, 2017 and did not have a significant impact on our financial statements. ASU 2016-07, “Investments - Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting.” ASU 2016-07 affects all entities that have an investment that becomes qualified for the equity method of accounting as a result of an increase in the level of ownership interest or degree of influence. ASU 2016-07 simplifies the transition to the equity method of accounting by eliminating retroactive adjustment of the investment when an investment qualifies for use of the equity method, among other things. ASU 2016-07 became effective for us on January 1, 2017 and did not have a significant impact on our financial statements. ASU 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” Under ASU 2016-09 all excess tax benefits and tax deficiencies related to share-based payment awards should be recognized as income tax expense or benefit in the income statement during the period in which they occur. Previously, such amounts were recorded in the pool of excess tax benefits included in additional paid-in capital, if such pool was available. Because excess tax benefits are no longer recognized in additional paid-in capital, the assumed proceeds from applying the treasury stock method when computing earnings per share should exclude the amount of excess tax benefits that would have previously been recognized in additional paid-in capital. Additionally, excess tax benefits should be classified along with other income tax cash flows as an operating activity rather than a financing activity, as was previously the case. ASU 2016-09 also provided that an entity make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest (current GAAP at the time) or account for forfeitures when they occur. ASU 2016-09 changed the threshold to qualify for equity classification (rather than as a liability) to permit withholding up to the maximum statutory tax rates (rather than the minimum as was previously the case) in the applicable jurisdictions. We elected to adopt the provisions of ASU 2016-09 in 2016 in advance of the required application date of January 1, 2017. See Note 1 - Summary of Significant Accounting Policies and Note 13 - Income Taxes. ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts and requires enhanced disclosures related to the significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. In addition, ASU 2016-13 amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. ASU 2016-13 will be effective on January 1, 2020. We are currently evaluating the potential impact of ASU 2016-13 on our financial statements. In that regard, we have formed a cross-functional working group, under the direction of our Chief Financial Officer and our Chief Risk Officer. The working group is comprised of individuals from various functional areas including credit, risk management, finance and information technology, among others. We are currently developing an implementation plan to include assessment of processes, portfolio segmentation, model development, system requirements and the identification of data and resource needs, among other things. We are also currently evaluating selected third-party vendor solutions to assist us in the application of the ASU 2016-13. The adoption of ASU 2016-13 is likely to result in an increase in the allowance for loan losses as a result of changing from an “incurred loss” model, which encompasses allowances for current known and inherent losses within the portfolio, to an “expected loss” model, which encompasses allowances for losses expected to be incurred over the life of the portfolio. Furthermore, ASU 2016-13 will necessitate that we establish an allowance for expected credit losses on debt securities. While we are currently unable to reasonably estimate the impact of adopting ASU 2016-13, we expect that the impact of adoption will be significantly influenced by the composition, characteristics and quality of our loan and securities portfolios as well as the prevailing economic conditions and forecasts as of the adoption date. ASU 2016-15, “Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments.” ASU 2016-15 provides guidance related to certain cash flow issues in order to reduce the current and potential future diversity in practice. ASU 2016-15 will be effective for us on January 1, 2018 and is not expected to have a significant impact on our financial statements. ASU 2016-16, “Income Taxes (Topic 740) - Intra-Entity Transfers of Assets Other Than Inventory.” ASU 2016-16 provides guidance stating that an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. ASU 2016-16 will be effective for us on January 1, 2018 and is not expected to have a significant impact on our financial statements. ASU 2016-18, “Statement of Cash Flows (Topic 230) - Restricted Cash.” ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU 2016-18 will be effective for us on January 1, 2018 and is not expected to have a significant impact on our financial statements. ASU 2017-01, “Business Combinations (Topic 805) - Clarifying the Definition of a Business.” ASU 2017-01 clarifies the definition and provides a more robust framework to use in determining when a set of assets and activities constitutes a business. ASU 2017-01 is intended to provide guidance when evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU 2017-01 will be effective for us on January 1, 2018 and is not expected to have a significant impact on our financial statements. ASU 2017-04, “Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment.” ASU 2017-04 eliminates Step 2 from the goodwill impairment test which required entities to compute the implied fair value of goodwill. Under ASU 2017-04, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. ASU 2017-04 will be effective for us on January 1, 2020, with earlier adoption permitted and is not expected to have a significant impact on our financial statements. ASU 2017-05, “Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20) - Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets.” ASU 2017-05 clarifies the scope of Subtopic 610-20 and adds guidance for partial sales of nonfinancial assets, including partial sales of real estate. Historically, U.S. GAAP contained several different accounting models to evaluate whether the transfer of certain assets qualified for sale treatment. ASU 2017-05 reduces the number of potential accounting models that might apply and clarifies which model does apply in various circumstances. ASU 2017-05 will be effective for us on January 1, 2018 and is not expected to have a significant impact on our financial statements. ASU 2017-08,“Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20) - Premium Amortization on Purchased Callable Debt Securities.” ASU 2017-08 shortens the amortization period for certain callable debt securities held at a premium to require such premiums to be amortized to the earliest call date unless applicable guidance related to certain pools of securities is applied to consider estimated prepayments. Under prior guidance, entities were generally required to amortize premiums on individual, non-pooled callable debt securities as a yield adjustment over the contractual life of the security. ASU 2017-08 does not change the accounting for callable debt securities held at a discount. ASU 2017-08 will be effective for us on January 1, 2019, with early adoption permitted. We are currently evaluating the potential impact of ASU 2017-08 on our financial statements. ASU 2017-09, “Compensation - Stock Compensation (Topic 718) - Scope of Modification Accounting.” ASU 2017-09 clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. Under ASU 2017-09, an entity will not apply modification accounting to a share-based payment award if all of the following are the same immediately before and after the change: (i) the award's fair value, (ii) the award's vesting conditions and (iii) the award's classification as an equity or liability instrument. ASU 2017-09 will be effective for us on January 1, 2018 and is not expected to have a significant impact on our financial statements. ASU 2017-12, “Derivatives and Hedging (Topic 815) - Targeted Improvements to Accounting for Hedging Activities.” ASU 2017-12 amends the hedge accounting recognition and presentation requirements in ASC 815 to improve the transparency and understandability of information conveyed to financial statement users about an entity’s risk management activities to better align the entity’s financial reporting for hedging relationships with those risk management activities and to reduce the complexity of and simplify the application of hedge accounting. ASU 2017-12 will be effective for us on January 1, 2019 and is not expected to have a significant impact on our financial statements. |
Summary of Significant Accounting Policies (Policies) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nature of Operations | Nature of Operations. Cullen/Frost Bankers, Inc. (“Cullen/Frost”) is a financial holding company and a bank holding company headquartered in San Antonio, Texas that provides, through its subsidiaries, a broad array of products and services throughout numerous Texas markets. The terms “Cullen/Frost,” “the Corporation,” “we,” “us” and “our” mean Cullen/Frost Bankers, Inc. and its subsidiaries, when appropriate. In addition to general commercial and consumer banking, other products and services offered include trust and investment management, insurance, brokerage, mutual funds, leasing, treasury management, capital markets advisory and item processing. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation | Basis of Presentation. The consolidated financial statements include the accounts of Cullen/Frost and all other entities in which Cullen/Frost has a controlling financial interest. All significant intercompany balances and transactions have been eliminated in consolidation. The accounting and financial reporting policies we follow conform, in all material respects, to accounting principles generally accepted in the United States and to general practices within the financial services industry. We determine whether we have a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity (“VIE”) under accounting principles generally accepted in the United States. Voting interest entities are entities in which the total equity investment at risk is sufficient to enable the entity to finance itself independently and provides the equity holders with the obligation to absorb losses, the right to receive residual returns and the right to make decisions about the entity’s activities. We consolidate voting interest entities in which we have all, or at least a majority of, the voting interest. As defined in applicable accounting standards, VIEs are entities that lack one or more of the characteristics of a voting interest entity. A controlling financial interest in a VIE is present when an enterprise has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and an obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. The enterprise with a controlling financial interest, known as the primary beneficiary, consolidates the VIE. Our wholly owned subsidiaries Cullen/Frost Capital Trust II and WNB Capital Trust I are VIEs for which we are not the primary beneficiary. Accordingly, the accounts of these trusts are not included in our consolidated financial statements. We have evaluated subsequent events for potential recognition and/or disclosure through the date these consolidated financial statements were issued. All acquisitions during the reported periods were accounted for using the purchase method. Accordingly, the operating results of the acquired companies are included with our results of operations since their respective dates of acquisition. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Use of Estimates | Use of Estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. The allowance for loan losses and the fair values of financial instruments and the status of contingencies are particularly subject to change. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Concentrations and Restrictions on Cash and Cash Equivalents | Concentrations and Restrictions on Cash and Cash Equivalents. We maintain deposits with other financial institutions in amounts that exceed federal deposit insurance coverage. Furthermore, federal funds sold are essentially uncollateralized loans to other financial institutions. Management regularly evaluates the credit risk associated with the counterparties to these transactions and believes that we are not exposed to any significant credit risks on cash and cash equivalents. We were required to have $179.6 million and $176.6 million of cash on hand or on deposit with the Federal Reserve Bank to meet regulatory reserve and clearing requirements at December 31, 2017 and 2016. These deposits with the Federal Reserve Bank do not earn interest. Additionally, as of December 31, 2017 and 2016, we had $19.6 million and $14.7 million in cash collateral on deposit with other financial institution counterparties to interest rate swap transactions. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash Flow Reporting | Cash Flow Reporting. Cash and cash equivalents include cash, deposits with other financial institutions that have an initial maturity of less than 90 days when acquired by us, federal funds sold and resell agreements. Net cash flows are reported for loans, deposit transactions and short-term borrowings. Additional cash flow information was as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase/Resell Agreements | Repurchase/Resell Agreements. We purchase certain securities under agreements to resell. The amounts advanced under these agreements represent short-term loans and are reflected as assets in the accompanying consolidated balance sheets. The securities underlying these agreements are book-entry securities. We also sell certain securities under agreements to repurchase. The agreements are treated as collateralized financing transactions and the obligations to repurchase securities sold are reflected as a liability in the accompanying consolidated balance sheets. The dollar amount of the securities underlying the agreements remain in the asset accounts. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities | Securities. Securities are classified as held to maturity and carried at amortized cost when management has the positive intent and ability to hold them until maturity. Securities to be held for indefinite periods of time are classified as available for sale and carried at fair value, with the unrealized holding gains and losses reported as a component of other comprehensive income, net of tax. Securities held for resale in anticipation of short-term market movements are classified as trading and are carried at fair value, with changes in unrealized holding gains and losses included in income. Management determines the appropriate classification of securities at the time of purchase. Securities with limited marketability, such as stock in the Federal Reserve Bank and the Federal Home Loan Bank, are carried at cost. Purchase premiums and discounts on securities are amortized or accreted to interest income over the expected lives of the securities using the interest method with a constant effective yield. Expectations related to prepayments are considered in the calculation of the constant effective yield necessary to apply the interest method for mortgage-backed securities and certain pools of municipal securities. Premium amortization and discount accretion for mortgage-backed securities and pools of municipal securities is adjusted for changes in prepayment estimates, as applicable. Realized gains and losses are derived from the amortized cost of the security sold. Declines in the fair value of held-to-maturity and available-for-sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. In estimating other-than-temporary impairment losses, management considers, among other things, (i) the length of time and the extent to which the fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer and (iii) the intent and our ability to retain our investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans | Loans. Loans are reported at the principal balance outstanding net of unearned discounts. Interest income on loans is reported on the level-yield method and includes amortization of deferred loan fees and costs over the loan term. Net loan commitment fees or costs for commitment periods greater than one year are deferred and amortized into fee income or other expense on a straight-line basis over the commitment period. Income on direct financing leases is recognized on a basis that achieves a constant periodic rate of return on the outstanding investment. Further information regarding our accounting policies related to past due loans, non-accrual loans, impaired loans and troubled-debt restructurings is presented in Note 3 - Loans. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Acquired Through Transfer | Loans Acquired Through Transfer. Loans acquired through the completion of a transfer, including loans acquired in a business combination, are initially recorded at fair value. Acquired loans that have evidence of deterioration of credit quality since origination and for which it is probable, at acquisition, that we will be unable to collect all contractually required payments receivable are considered to be purchased credit-impaired. For purchased credit-impaired loans, the difference between the undiscounted cash flows expected at acquisition and the recorded fair value of the loan, or the “accretable yield,” is recognized as interest income on a level-yield method over the life of the loan. Contractually required payments for interest and principal that exceed the undiscounted cash flows expected at acquisition, or the “nonaccretable difference,” are not recognized as a yield adjustment or as a loss accrual or a valuation allowance. Increases in expected cash flows subsequent to the initial investment are recognized prospectively through adjustment of the yield on the loan over its remaining life. Decreases in expected cash flows are recognized as impairment. Valuation allowances on these impaired loans reflect only losses incurred after the acquisition (meaning the present value of all cash flows expected at acquisition that ultimately are not to be received). For acquired loans that are not deemed to be purchased credit-impaired at acquisition, the difference between the initial fair value and the unpaid principal balance is recognized as interest income on a level-yield basis over the lives of the related loans. Subsequent to acquisition, any valuation allowance on these loans reflects only the portion of probable losses that exceeds any unaccreted purchase discounts on these loans as of the measurement date. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Loan Losses | Allowance for Loan Losses. The allowance for loan losses is a reserve established through a provision for loan losses charged to expense, which represents management’s best estimate of inherent losses that have been incurred within the existing portfolio of loans. The allowance, in the judgment of management, is necessary to reserve for estimated loan losses inherent in the loan portfolio. The allowance for loan losses includes allowance allocations calculated in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 310, “Receivables” and allowance allocations calculated in accordance with ASC Topic 450, “Contingencies.” Further information regarding our policies and methodology used to estimate the allowance for loan losses is presented in Note 3 - Loans. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Premises and Equipment | Premises and Equipment. Land is carried at cost. Building and improvements, and furniture and equipment are carried at cost, less accumulated depreciation, computed principally by the straight-line method based on the estimated useful lives of the related property. Leasehold improvements are generally depreciated over the lesser of the term of the respective leases or the estimated useful lives of the improvements. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreclosed Assets | Foreclosed Assets. Assets acquired through or instead of loan foreclosure are held for sale and are initially recorded at fair value less estimated selling costs when acquired, establishing a new cost basis. Costs after acquisition are generally expensed. If the fair value of the asset declines, a write-down is recorded through expense. The valuation of foreclosed assets is subjective in nature and may be adjusted in the future because of changes in economic conditions. Foreclosed assets are included in other assets in the accompanying consolidated balance sheets and totaled $2.1 million and $2.4 million at December 31, 2017 and 2016. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | Goodwill. Goodwill represents the excess of the cost of businesses acquired over the fair value of the net assets acquired. Goodwill is assigned to reporting units and tested for impairment at least annually on October 1st, or on an interim basis if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying value. See Note 5 - Goodwill and Other Intangible Assets. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangibles and Other Long Lived Assets | Intangibles and Other Long-Lived Assets. Intangible assets are acquired assets that lack physical substance but can be distinguished from goodwill because of contractual or other legal rights or because the asset is capable of being sold or exchanged either on its own or in combination with a related contract, asset, or liability. Our intangible assets relate to core deposits, non-compete agreements and customer relationships. Intangible assets with definite useful lives are amortized on an accelerated basis over their estimated life. Intangible assets with indefinite useful lives are not amortized until their lives are determined to be definite. Intangible assets, premises and equipment and other long-lived assets are tested for impairment whenever events or changes in circumstances indicate the carrying amount of the assets may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value. See Note 5 - Goodwill and Other Intangible Assets. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance Commissions and Fees | Insurance Commissions and Fees. Commission revenue is recognized as of the effective date of the insurance policy. We also receive contingent commissions from insurance companies as additional incentive for achieving specified premium volume goals and/or the loss experience of the insurance placed by us. Contingent commissions from insurance companies are recognized when determinable, which is generally when such commissions are received or when we receive data from the insurance companies that allows the reasonable estimation of these amounts. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Based Compensation | Share-Based Payments. Compensation expense for stock options, non-vested stock awards/stock units and deferred stock units is based on the fair value of the award on the measurement date, which, for us, is the date of the grant and is recognized ratably over the service period of the award. Compensation expense for performance stock units is based on the fair value of the award on the measurement date, which, for us, is the date of the grant and is recognized over the service period of the award based upon the probable number of units expected to vest. The fair value of stock options is estimated using a binomial lattice-based valuation model. The fair value of non-vested stock awards/stock units and deferred stock units is generally the market price of our stock on the date of grant. The fair value of performance stock units is generally the market price of our stock on the date of grant discounted by the present value of the dividends expected to be paid on our common stock during the service period of the award because dividend equivalent payments on performance stock units are deferred until such time that the units vest and shares are issued. The impact of forfeitures of share-based payment awards on compensation expense is recognized as forfeitures occur. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Advertising Costs | Advertising Costs. Advertising costs are expensed as incurred. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes. Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities (excluding deferred tax assets and liabilities related to business combinations or components of other comprehensive income). Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the expected amount most likely to be realized. Realization of deferred tax assets is dependent upon the generation of a sufficient level of future taxable income and recoverable taxes paid in prior years. Although realization is not assured, management believes it is more likely than not that all of the deferred tax assets will be realized. Interest and/or penalties related to income taxes are reported as a component of income tax expense. The income tax effects related to settlements of share-based payment awards are reported in earnings as an increase (or decrease) to income tax expense (see Note 13 - Income Taxes). Prior to 2016, income tax benefits at settlement of an award were reported as an increase (or decrease) to additional paid-in capital to the extent that those benefits were greater than (or less than) the income tax benefits recognized in earnings during the award's vesting period. We file a consolidated income tax return with our subsidiaries. Federal income tax expense or benefit has been allocated to subsidiaries on a separate return basis. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic and Diluted Earnings Per Common Share | Basic and Diluted Earnings Per Common Share. Earnings per common share is computed using the two-class method prescribed under ASC Topic 260, “Earnings Per Share.” ASC Topic 260 provides that unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and shall be included in the computation of earnings per share pursuant to the two-class method. We have determined that our outstanding non-vested stock awards/stock units and deferred stock units are participating securities. Under the two-class method, basic earnings per common share is computed by dividing net earnings allocated to common stock by the weighted-average number of common shares outstanding during the applicable period, excluding outstanding participating securities. Diluted earnings per common share is computed using the weighted-average number of shares determined for the basic earnings per common share computation plus the dilutive effect of stock compensation using the treasury stock method. A reconciliation of the weighted-average shares used in calculating basic earnings per common share and the weighted average common shares used in calculating diluted earnings per common share for the reported periods is provided in Note 10 - Earnings Per Common Share. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive Income | Comprehensive Income. Comprehensive income includes all changes in shareholders’ equity during a period, except those resulting from transactions with shareholders. Besides net income, other components of our comprehensive income include the after tax effect of changes in the net unrealized gain/loss on securities available for sale, changes in the net unrealized gain on securities transferred to held to maturity and changes in the net actuarial gain/loss on defined benefit post-retirement benefit plans. See Note 14 - Other Comprehensive Income (Loss). |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments. Our hedging policies permit the use of various derivative financial instruments to manage interest rate risk or to hedge specified assets and liabilities. All derivatives are recorded at fair value on our balance sheet. Derivatives executed with the same counterparty are generally subject to master netting arrangements, however, fair value amounts recognized for derivatives and fair value amounts recognized for the right/obligation to reclaim/return cash collateral are not offset for financial reporting purposes. We may be required to recognize certain contracts and commitments as derivatives when the characteristics of those contracts and commitments meet the definition of a derivative. To qualify for hedge accounting, derivatives must be highly effective at reducing the risk associated with the exposure being hedged and must be designated as a hedge at the inception of the derivative contract. We consider a hedge to be highly effective if the change in fair value of the derivative hedging instrument is within 80% to 125% of the opposite change in the fair value of the hedged item attributable to the hedged risk. If derivative instruments are designated as hedges of fair values, and such hedges are highly effective, both the change in the fair value of the hedge and the hedged item are included in current earnings. Fair value adjustments related to cash flow hedges are recorded in other comprehensive income and are reclassified to earnings when the hedged transaction is reflected in earnings. Ineffective portions of hedges are reflected in earnings as they occur. Actual cash receipts and/or payments and related accruals on derivatives related to hedges are recorded as adjustments to the interest income or interest expense associated with the hedged item. During the life of the hedge, we formally assess whether derivatives designated as hedging instruments continue to be highly effective in offsetting changes in the fair value or cash flows of hedged items. If it is determined that a hedge has ceased to be highly effective, we will discontinue hedge accounting prospectively. At such time, previous adjustments to the carrying value of the hedged item are reversed into current earnings and the derivative instrument is reclassified to a trading position recorded at fair value. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements. In general, fair values of financial instruments are based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality and our creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. See Note 17 - Fair Value Measurements. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers of Financial Assets | Transfers of Financial Assets. Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (i) the assets have been isolated from us, (ii) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (iii) we do not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies | Loss Contingencies. Loss contingencies, including claims and legal actions arising in the ordinary course of business are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trust Assets | Trust Assets. Assets of our trust department, other than cash on deposit at Frost Bank, are not included in the accompanying financial statements because they are not our assets. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Changes, Reclassifications and Restatement | Accounting Changes, Reclassifications and Restatement. Certain items in prior financial statements have been reclassified to conform to the current presentation. |
Summary of Significant Accounting Policies (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional Cash Flow Information | Additional cash flow information was as follows:
|
Securities (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year End Securities Held To Maturity And Available For Sale | Year-end securities held to maturity and available for sale consisted of the following:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year End Securities with Unrealized Losses, Segregated by Length of Impairment | Year-end securities with unrealized losses, segregated by length of impairment, were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost and Estimated Fair Value of Securities, Excluding Trading Securities, Presented by Contractual Maturity | The amortized cost and estimated fair value of securities, excluding trading securities, at December 31, 2017 are presented below by contractual maturity. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Residential mortgage-backed securities and equity securities are shown separately since they are not due at a single maturity date.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Held-to-maturity Securities [Table Text Block] | Sales of securities held to maturity were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales of Securities Available for Sale | Sales of securities available for sale were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Premium Amortization and Discount Accretion Included in Income on Securities | Premium amortization and discount accretion included in interest income on securities was as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year End Trading Account Securities, at Estimated Fair Value | Year-end trading account securities, at estimated fair value, were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Gains and Losses on Trading Account Securities | Net gains and losses on trading account securities were as follows:
|
Loans (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans | Year-end loans, including leases net of unearned discounts, consisted of the following:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Activities in Related Party Loans | Activity in related party loans during 2017 is presented in the following table. Other changes were primarily related to changes in related-party status.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Accrual Loans, Segregated by Class of Loans | Year-end non-accrual loans, segregated by class of loans, were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Age Analysis of Past Due Loans, Segregated by Class of Loans | An age analysis of past due loans (including both accruing and non-accruing loans), segregated by class of loans, as of December 31, 2017 was as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impaired Loans | Year-end impaired loans are set forth in the following table. No interest income was recognized on impaired loans subsequent to their classification as impaired.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Troubled Debt Restructurings | Troubled debt restructurings that occurred during 2017, 2016 and 2015 are set forth in the following table.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructured Loans Past Due in Excess of 90 Days on Financing Receivables [Table Text Block] | Additional information related to restructured loans was as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted Average Risk Grades for All Commercial Loans by Class | The following tables present weighted average risk grades for all commercial loans by class.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (Charge-Offs)/Recoveries, Segregated by Class of Loans | Net (charge-offs)/recoveries, segregated by class of loan, were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unallocated Portion of the Allowance for Loan Losses | The following table presents details of the allowance for loan losses, segregated by loan portfolio segment.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in Loans Related to the Allowance for Loan Losses by Portfolio Segment Disaggregated Based on Impairment Methodology | The Corporation’s recorded investment in loans related to each balance in the allowance for loan losses by portfolio segment and detailed on the basis of the impairment methodology used by the Corporation was as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Activity in Allowance for Loan Losses by Portfolio Segment | The following table details activity in the allowance for loan losses by portfolio segment for 2017, 2016 and 2015. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.
|
Premises and Equipment (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Premises and Equipment | Year-end premises and equipment were as follows:
|
Goodwill and Other Intangible Assets (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | Goodwill. Year-end goodwill was as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Intangible Assets | Other Intangible Assets. Year-end other intangible assets were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated Aggregate Future Amortization Expense for Intangible Assets | The estimated aggregate future amortization expense for intangible assets remaining as of December 31, 2017 is as follows:
|
Deposits (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Deposits | Year-end deposits were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional Information About Corporation's Deposits | The following table presents additional information about our year-end deposits:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Scheduled Maturities of Time Deposits | Scheduled maturities of time deposits, including both private and public funds, at December 31, 2017 were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Scheduled Maturities of Time Deposits in Amounts of $100,000 or More | Scheduled maturities of time deposits in amounts of $100,000 or more, including both private and public funds, at December 31, 2017, were as follows:
|
Off-Balance-Sheet Arrangements, Commitments, Guarantees and Contingencies (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments With Off-Balance-Sheet Risk | Year-end financial instruments with off-balance-sheet risk were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||
Future Minimum Lease Payments Due Under Non-Cancelable Operating Leases | Future minimum lease payments due under non-cancelable operating leases at December 31, 2017 were as follows:
|
Capital and Regulatory Matters (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Capital Requirements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Actual and Required Capital Ratios |
|
Earnings Per Common Share (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic and Diluted Earnings Per Common Share | The following table presents a reconciliation of net income available to common shareholders, net earnings allocated to common stock and the number of shares used in the calculation of basic and diluted earnings per common share.
|
Employee Benefit Plans (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Combined Activity in Corporations Defined Benefit Pension Plans | We use a December 31 measurement date for our defined benefit plans. Combined activity in our defined benefit pension plans was as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregated Information Related to Corporations Defined Benefit Pension Plans | Certain disaggregated information related to our defined benefit pension plans as of year-end was as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Periodic Benefit Cost (Benefit) | The components of the combined net periodic cost (benefit) for our defined benefit pension plans are presented in the table below. Supplemental executive retirement plan (“SERP”) settlement costs were related to the retirement of a former executive officer.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Pension Plans Recognized as Component of Other Comprehensive Income | Amounts related to our defined benefit pension plans recognized as a component of other comprehensive income were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Pension Plans Not Recognized as Component of Combined Net Period Benefit Cost | We expect to recognize approximately $5.0 million of the net actuarial loss reported in the following table as of December 31, 2017 as a component of net periodic benefit cost during 2018.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted-Average Assumptions Used to Determine Benefit Obligations | The weighted-average assumptions used to determine the benefit obligations as of the end of the years indicated and the net periodic benefit cost for the years indicated are presented in the table below. Because the plans were frozen, increases in compensation are not considered after 2001.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Plan Assets | The major categories of assets in our Retirement Plan as of year-end are presented in the following table. Assets are segregated by the level of the valuation inputs within the fair value hierarchy established by ASC Topic 820 “Fair Value Measurements and Disclosures,” utilized to measure fair value (see Note 17 - Fair Value Measurements). Our Restoration Plan is unfunded.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expected Future Benefit Payments Related to Defined Benefit Plans | As of December 31, 2017, expected future benefit payments related to our defined benefit plans were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Activity in Corporation's Active Stock Plans | A combined summary of activity in our active stock plans is presented in the table. Performance stock units outstanding are presented assuming attainment of the maximum payout rate as set forth by the performance criteria. The target award level for performance stock units granted in 2017 and 2016 was 24,162 and 29,240, respectively. As of December 31, 2017, there were 1,367,750 shares remaining available for grant for future awards.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Options Outstanding and Exercisable | Other information regarding options outstanding and exercisable as of December 31, 2017 is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares Issued in Connection With Stock Compensation Awards | Shares issued in connection with stock compensation awards are issued from available treasury shares. If no treasury shares are available, new shares are issued from available authorized shares. Shares issued in connection with stock compensation awards along with other related information were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation Expense | Stock-based compensation expense and the related income tax benefit is presented in the following table. The service period for performance stock units granted each year begins on January 1 of the following year.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrecognized Stock-Based Compensation Expense | Unrecognized stock-based compensation expense and the weighted-average period over which the expense is expected to be recognized at December 31, 2017 is presented in the table below. Unrecognized stock-based compensation expense related to performance stock units is presented assuming attainment of the maximum payout rate as set forth by the performance criteria.
|
Other Non-Interest Income and Expense (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Non-Interest Income and Expense |
|
Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Expense | Income tax expense was as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Computed by Applying U.S. Federal Statutory Income Tax Rate | A reconciliation between reported income tax expense and the amounts computed by applying the U.S. federal statutory income tax rate of 35% to income before income taxes is presented in the following table.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Deferred Tax Assets and Liabilities | Year-end deferred taxes are presented in the table below. As a result of the Tax Cuts and Jobs Act enacted on December 22, 2017 (discussed below), deferred taxes as of December 31, 2017 are based on the newly enacted U.S. statutory federal income tax rate of 21%. Deferred taxes as of December 31, 2016 are based on the previously enacted U.S. statutory federal income tax rate of 35%.
|
Other Comprehensive Income (Loss) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Component of Other Comprehensive Income (Loss) | The tax effects allocated to each component of other comprehensive income (loss) were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income, Net of Tax | Activity in accumulated other comprehensive income, net of tax, was as follows:
|
Derivative Financial Instruments (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Notional Amounts and Estimated Fair Values of Interest Rate Derivative Contracts Outstanding |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Weighted-Average Rates Paid and Received for Interest Rate Swaps Outstanding | The weighted-average rates paid and received for interest rate swaps outstanding at December 31, 2017 were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Notional Amounts and Estimated Fair Values of Commodity Derivative Positions | The notional amounts and estimated fair values of non-hedging commodity swap and option derivative positions outstanding are presented in the following table. We obtain dealer quotations and use internal valuation models with observable market data inputs to value our commodity derivative positions.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Foreign Exchange Contracts, Statement of Financial Position | The notional amounts and fair values of open foreign currency forward contracts were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Amounts Related to Interest Rate Derivatives Designated as Hedges of Fair Value | Amounts included in the consolidated statements of income related to interest rate derivatives designated as hedges of fair value were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Amounts Related to Non-Hedging Interest Rate and Commodity Derivatives | Amounts included in the consolidated statements of income related to non-hedging interest rate, commodity and foreign currency derivative instruments are presented in the table below.
|
Balance Sheet Offsetting Balance Sheet Offsetting (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments Eligible for Offset Consolidated Balance Sheet | Information about financial instruments that are eligible for offset in the consolidated balance sheet as of December 31, 2017 is presented in the following tables.
Information about financial instruments that are eligible for offset in the consolidated balance sheet as of December 31, 2016 is presented in the following tables.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments Derivative Assets Liabilities And Resell Agreements Net Of Amount Not Offset |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Remaining Contractual Maturity of the Securities Sold Under Agreement | The remaining contractual maturity of repurchase agreements in the consolidated balance sheets as of December 31, 2017 and December 31, 2016 is presented in the following tables.
|
Fair Value Measurements (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Assets and Financial Liabilities Measured at Fair Value on a Recurring Basis | The following tables summarize financial assets and financial liabilities measured at fair value on a recurring basis as of December 31, 2017 and 2016, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impaired Loans Remeasured and Reported at Fair Value of Underlying Collateral | The following table presents impaired loans that were remeasured and reported at fair value through a specific valuation allowance allocation of the allowance for loan losses based upon the fair value of the underlying collateral:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreclosed Assets Remeasured and Reported at Fair Value | The following table presents foreclosed assets that were remeasured and reported at fair value:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated Fair Values of Financial Instruments | The estimated fair values of financial instruments that are reported at amortized cost in our consolidated balance sheets, segregated by the level of valuation inputs within the fair value hierarchy utilized to measure fair value, were as follows:
|
Operating Segments (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Operating Results by Segment | Financial results by operating segment are detailed below. Certain prior period amounts have been reclassified to conform to the current presentation. Frost Wealth Advisors excludes off balance sheet managed and custody assets with a total fair value of $32.8 billion, $29.3 billion and $30.7 billion at December 31, 2017, 2016 and 2015.
|
Condensed Financial Statements of Parent Company (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Condensed Balance Sheets | Condensed Balance Sheets
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Condensed Statements of Income | Condensed Statements of Income
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Condensed Statements of Cash Flows | Condensed Statements of Cash Flows
|
Summary of Significant Accounting Policies (Narrative) (Detail) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cash on hand or on deposit required | $ 179.6 | $ 176.6 |
Cash collateral on deposit | 19.6 | 14.7 |
Foreclosed Assets | $ 2.1 | $ 2.4 |
Minimum [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Range of change in fair value of derivative hedging instrument to be considered highly effective | 80.00% | |
Maximum [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Range of change in fair value of derivative hedging instrument to be considered highly effective | 125.00% |
Summary of Significant Accounting Policies (Additional Cash Flow Information) (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Accounting Policies [Abstract] | |||
Cash paid for interest | $ 24,371 | $ 11,886 | $ 12,982 |
Cash paid for income tax | 56,359 | 50,427 | 57,086 |
Deferred gain on sale of building and parking garage | 0 | 7,099 | 0 |
Unsettled purchases/sales of securities | 37,481 | 0 | 2,998 |
Loans foreclosed and transferred to other real estate owned and foreclosed assets | 279 | 0 | 933 |
Loans to facilitate the sale of other real estate owned | $ 0 | $ 753 | $ 20 |
Securities Securities (Sales of Securities Held to Maturity) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds from sales | $ 0 | $ 136,719 | $ 0 |
Amortized cost | 0 | 132,974 | 0 |
Gross realized gains | 0 | 3,770 | 0 |
Gross realized losses | 0 | (25) | 0 |
Tax expense related to security gains/losses | $ 0 | $ (1,311) | $ 0 |
Securities (Sales of Securities Available for Sale) (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds from sales | $ 11,963,359 | $ 14,847,380 | $ 12,683,169 |
Gross realized gains | 1 | 13,289 | 228 |
Gross realized losses | (4,942) | (2,059) | (159) |
Tax benefit (expense) related to securities gains/losses | $ 1,729 | $ (3,931) | $ (24) |
Securities Securities - (Premium Amortization and Discount Accretion Included in Income on Securities) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Investments, Debt and Equity Securities [Abstract] | |||
Premium amortization | $ (97,841) | $ (90,782) | $ (84,467) |
Discount accretion | 7,908 | 11,077 | 10,682 |
Net (premium amortization) discount accretion | $ (89,933) | $ (79,705) | $ (73,785) |
Securities (Year End Trading Account Securities at Estimated Fair Value) (Detail) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading account securities | $ 21,098 | $ 16,703 |
US Treasury [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading account securities | 19,210 | 16,594 |
States and Political Subdivisions [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading account securities | $ 1,888 | $ 109 |
Securities (Net Gains and Losses on Trading Account Securities) (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Investments, Debt and Equity Securities [Abstract] | |||
Net gain on sales transactions | $ 1,408 | $ 1,236 | $ 1,109 |
Net mark-to-market gains (losses) | (43) | (157) | (53) |
Net gain on trading account securities | $ 1,365 | $ 1,079 | $ 1,056 |
Loans (Loans) (Detail) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commercial and Industrial | $ 4,792,388 | $ 4,344,000 |
Energy | 1,499,093 | 1,386,061 |
Commercial mortgages | 3,887,742 | 3,481,157 |
Construction | 1,066,696 | 1,043,261 |
Land | 331,986 | 311,030 |
Total commercial real estate | 5,286,424 | 4,835,448 |
Home equity loans | 355,342 | 345,130 |
Home equity lines of credit | 291,950 | 264,862 |
Other | 376,002 | 326,793 |
Total consumer real estate | 1,023,294 | 936,785 |
Total real estate | 6,309,718 | 5,772,233 |
Consumer and Other | 544,466 | 473,098 |
Total loans | 13,145,665 | 11,975,392 |
Energy Production [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Energy | 1,182,326 | 971,767 |
Energy Service [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Energy | 171,795 | 221,213 |
Energy Other [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Energy | $ 144,972 | $ 193,081 |
Loans (Activities in Related Party Loans) (Detail) $ in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2017
USD ($)
| |
Receivables [Abstract] | |
Balance outstanding at December 31, 2016 | $ 142,771 |
Principal additions | 270,684 |
Principal reductions | (271,325) |
Other changes | 24,273 |
Balance outstanding at December 31, 2017 | $ 166,403 |
Loans (Non-Accrual Loans, Segregated by Class of Loans) (Detail) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Non Accrual Loans Segregated By Class Of Loans [Line Items] | ||
Non-accrual loans | $ 150,314 | $ 100,151 |
Commercial Portfolio Segment [Member] | ||
Non Accrual Loans Segregated By Class Of Loans [Line Items] | ||
Non-accrual loans | 46,186 | 31,475 |
Commercial and Industrial, Energy [Member] | ||
Non Accrual Loans Segregated By Class Of Loans [Line Items] | ||
Non-accrual loans | 94,302 | 57,571 |
Commercial Real Estate, Buildings, Land and Other [Member] | ||
Non Accrual Loans Segregated By Class Of Loans [Line Items] | ||
Non-accrual loans | 7,589 | 8,550 |
Construction Loans [Member] | ||
Non Accrual Loans Segregated By Class Of Loans [Line Items] | ||
Non-accrual loans | 0 | 0 |
Residential Portfolio Segment [Member] | ||
Non Accrual Loans Segregated By Class Of Loans [Line Items] | ||
Non-accrual loans | 2,109 | 2,130 |
Consumer Portfolio Segment [Member] | ||
Non Accrual Loans Segregated By Class Of Loans [Line Items] | ||
Non-accrual loans | $ 128 | $ 425 |
Loans (Troubled Debt Restructurings) (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Financing Receivable, Modifications [Line Items] | |||
Balance at Restructure | $ 60,510 | $ 91,418 | $ 709 |
Balance at Year-end | 58,484 | 44,863 | 536 |
Commercial Portfolio Segment [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Balance at Restructure | 4,026 | 2,148 | 709 |
Balance at Year-end | 3,766 | 1,022 | 536 |
Commercial and Industrial, Energy [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Balance at Restructure | 56,096 | 87,572 | 0 |
Balance at Year-end | 54,330 | 43,841 | 0 |
Commercial Real Estate, Buildings, Land and Other [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Balance at Restructure | 0 | 1,455 | 0 |
Balance at Year-end | 0 | 0 | 0 |
Construction Loans [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Balance at Restructure | 388 | 243 | 0 |
Balance at Year-end | $ 388 | $ 0 | $ 0 |
Loans Loans (Restructured Loans Past Due in Excess of 90 Days) (Details) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017
USD ($)
Item
|
Dec. 31, 2016
USD ($)
Item
|
Dec. 31, 2015
USD ($)
Item
|
|
Financing Receivable, Modifications [Line Items] | |||
Number Of Loans Restructured During The Last Year In Excess of 90 Days Past Due | Item | 1 | 2 | 1 |
Dollar amount of loans previously restructured during the last year in excess of 90 days past due | $ 43,137 | $ 3,230 | $ 259 |
Restructured loans on non-accrual status at period end | 58,484 | 44,863 | 536 |
Chare-offs of restrucured loans recognized in connection with restructuring | 0 | 4,115 | 88 |
Charge-offs of restructured loans recognized on previously restructured loans | 9,951 | 9,490 | 0 |
Proceeds from sale of restructured loans | 0 | 30,470 | 0 |
Non Accrual Loans [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Restructured loans on non-accrual status at period end | $ 53,622 | $ 44,863 | $ 536 |
Premises and Equipment (Premises and Equipment) (Detail) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Property, Plant and Equipment [Abstract] | ||
Land | $ 107,249 | $ 106,505 |
Buildings | 379,829 | 361,573 |
Furniture and equipment | 179,424 | 167,723 |
Leasehold improvements | 74,314 | 67,540 |
Construction in progress | 11,107 | 19,508 |
Premises and equipment, Gross | 751,923 | 722,849 |
Less accumulated depreciation and amortization | (230,965) | (197,028) |
Total premises and equipment, net | $ 520,958 | $ 525,821 |
Premises and Equipment (Narrative) (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization of premises and equipment, year to date | $ 36,300 | $ 36,000 | $ 28,500 |
Gain on sale and lease-back of property plant equipment | 10,300 | ||
Net deferred gain on sale of property | 4,200 | ||
Gross deferred gain on sale of property | 0 | $ 7,099 | $ 0 |
Current period amortization of deferred gain | $ 2,900 |
Goodwill and Other Intangible Assets (Schedule of Goodwill) (Detail) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 654,952 | $ 654,952 |
Goodwill and Other Intangible Assets (Schedule of Other Intangible Assets) (Detail) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | $ 14,043 | $ 15,476 |
Accumulated Amortization | (8,970) | (8,700) |
Net Intangible Assets | 5,073 | 6,776 |
Core Deposits [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | 9,300 | 9,300 |
Accumulated Amortization | (5,256) | (4,002) |
Net Intangible Assets | 4,044 | 5,298 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | 4,669 | 6,102 |
Accumulated Amortization | (3,683) | (4,692) |
Net Intangible Assets | 986 | 1,410 |
Noncompete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | 74 | 74 |
Accumulated Amortization | (31) | (6) |
Net Intangible Assets | $ 43 | $ 68 |
Goodwill and Other Intangible Assets (Narrative) (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense related to intangible assets | $ 1,703 | $ 2,429 | $ 3,325 |
Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Other intangible assets estimated lives, years | 5 years | ||
Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Other intangible assets estimated lives, years | 10 years | ||
Insurance [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill, Acquired During Period | 284 | ||
Finite-lived Intangible Assets Acquired | $ 405 |
Goodwill and Other Intangible Assets (Estimated Aggregate Future Amortization Expense for Intangible Assets) (Detail) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2018 | $ 1,424 | |
2019 | 1,167 | |
2020 | 918 | |
2021 | 697 | |
2022 | 481 | |
Thereafter | 386 | |
Net Intangible Assets | $ 5,073 | $ 6,776 |
Deposits (Additional Information About Corporation's Deposits) (Detail) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Deposits [Abstract] | ||
Deposits from foreign sources (primarily Mexico) | $ 716,339 | $ 776,003 |
Deposits not covered by deposit insurance | 13,281,040 | 12,889,047 |
Deposits from certain directors, executive officers and their affiliates | $ 196,686 | $ 199,969 |
Deposits (Scheduled Maturities of Time Deposits) (Detail) $ in Thousands |
Dec. 31, 2017
USD ($)
|
---|---|
Deposits [Abstract] | |
2018 | $ 643,058 |
2019 | 149,853 |
2020 | 0 |
2021 | 0 |
2022 | 0 |
Time deposits, Total | $ 792,911 |
Deposits (Scheduled Maturities of Time Deposits in Amounts of $100,000 or More) (Detail) $ in Thousands |
Dec. 31, 2017
USD ($)
|
---|---|
Deposits [Abstract] | |
Due within 3 months or less | $ 138,888 |
Due after 3 months and within 6 months | 75,805 |
Due after 6 months and within 12 months | 163,756 |
Due after 12 months | 89,520 |
Time deposits, $100,000 or more, total | $ 467,969 |
Off-Balance-Sheet Arrangements, Commitments, Guarantees and Contingencies (Financial Instruments With Off-Balance-Sheet Risk) (Detail) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Standby Letters of Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments with off- balance-sheet risk | $ 236,595 | $ 239,482 |
Deferred Standby Letter of Credit Fees [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments with off- balance-sheet risk | 1,843 | 2,054 |
Commitments to Extend Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments with off- balance-sheet risk | $ 7,949,400 | $ 7,476,420 |
Off-Balance Sheet Arrangements Commitments Guarantees and Contingencies (Narrative) (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Commitments And Guarantees [Line Items] | |||
Credit card guarantees | $ 8,400 | $ 8,300 | |
Fully collateralized credit card guarantees | 1,200 | 975 | |
Rent expense for operating leases | 30,500 | 28,900 | $ 28,900 |
Aggregate future minimum rentals to be received under non-cancelable subleases greater than one year | 445 | ||
Partnership Interest of a Director [Member] | |||
Commitments And Guarantees [Line Items] | |||
Rent expense for operating leases | $ 1,400 | $ 1,000 | $ 963 |
Off-Balance-Sheet Arrangements, Commitments, Guarantees and Contingencies (Future Minimum Lease Payments Due Under Non-Cancelable Operating Leases) (Detail) $ in Thousands |
Dec. 31, 2017
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
2018 | $ 27,990 |
2019 | 28,790 |
2020 | 31,907 |
2021 | 30,855 |
2022 | 28,639 |
Thereafter | 347,187 |
Future minimum lease payments due, total | $ 495,368 |
Earnings Per Common Share (Basic and Diluted Earnings Per Common Share) (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Earnings Per Share [Abstract] | |||
Net income | $ 364,149 | $ 304,261 | $ 279,328 |
Less: Preferred stock dividends | 8,063 | 8,063 | 8,063 |
Net income available to common shareholders | 356,086 | 296,198 | 271,265 |
Less: Earnings allocated to participating securities | 2,016 | 1,145 | 941 |
Distributed earnings allocated to common stock | 143,356 | 134,374 | 131,702 |
Undistributed earnings allocated to common stock | 210,714 | 160,679 | 138,622 |
Net earnings allocated to common stock | $ 354,070 | $ 295,053 | $ 270,324 |
Weighted-average shares outstanding for basic earnings per common share | 63,693,927 | 62,376,260 | 62,758,074 |
Dilutive effect of stock compensation | 968,161 | 592,615 | 715,250 |
Weighted-average shares outstanding for diluted earnings per common share | 64,662,088 | 62,968,875 | 63,473,324 |
Employee Benefit Plans (Combined Activity in Corporations Defined Benefit Pension Plans) (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Retirement Benefits [Abstract] | |||
Fair value of plan assets at beginning of year | $ 157,214 | $ 163,270 | $ 168,185 |
Actual return on plan assets | 23,518 | 5,174 | 1,567 |
Employer contributions | 1,049 | 4,819 | 736 |
Benefits paid | (13,331) | (16,049) | (7,218) |
Fair value of plan assets at end of year | 168,450 | 157,214 | 163,270 |
Benefit obligation at beginning of year | 176,751 | 194,140 | 199,637 |
Interest cost | 6,189 | 6,958 | 8,210 |
Actuarial (gain) loss | 12,998 | (8,298) | (6,489) |
Benefits paid | (13,331) | (16,049) | (7,218) |
Benefit obligation at end of year | 182,607 | 176,751 | 194,140 |
Funded status of the plan at end of year and accrued benefit (liability) recognized | (14,157) | (19,537) | (30,870) |
Accumulated benefit obligation at end of year | $ 182,607 | $ 176,751 | $ 194,140 |
Employee Benefit Plans (Net Periodic Benefit Cost (Benefit)) (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Retirement Benefits [Abstract] | |||
Expected return on plan assets, net of expenses | $ (11,117) | $ (11,558) | $ (11,932) |
Interest cost on projected benefit obligation | 6,189 | 6,958 | 8,210 |
Net amortization and deferral | 5,429 | 6,247 | 6,995 |
SERP settlement costs | 0 | 1,027 | 0 |
Net periodic expense (benefit) | $ 501 | $ 2,674 | $ 3,273 |
Employee Benefit Plans (Defined Benefit Pension Plans Recognized as Component of Other Comprehensive Income) (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial gain (loss) | $ 4,832 | $ 9,188 | $ 3,118 |
Deferred tax (expense) benefit | (1,774) | (3,216) | (1,091) |
Other comprehensive income (loss), net of tax | $ 3,058 | $ 5,972 | $ 2,027 |
Employee Benefit Plans (Defined Benefit Pension Plans not Recognized as Component of Combined Net Period Benefit Cost) (Detail) - Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss | $ (57,900) | $ (62,732) |
Deferred tax benefit | 12,160 | 21,956 |
Amounts included in accumulated other comprehensive loss, net of tax | $ (37,718) | $ (40,776) |
Employee Benefit Plans (Weighted-Average Assumptions Used to Determine Benefit Obligations) (Detail) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Retirement Benefits [Abstract] | |||
Benefit obligations, Discount rate | 3.68% | 4.24% | 4.55% |
Net periodic benefit cost, Discount rate | 4.24% | 4.55% | 4.20% |
Net periodic benefit cost, Expected return on plan assets | 7.25% | 7.25% | 7.25% |
Employee Benefit Plans (Fair Value of Plan Assets) (Detail) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|---|---|
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | $ 168,450 | $ 157,214 | $ 163,270 | $ 168,185 |
Mutual Funds [Member] | Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 165,322 | 153,765 | ||
Cash and Cash Equivalents [Member] | Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 3,128 | 3,208 | ||
US Government Agency Securities [Member] | Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | $ 0 | $ 241 |
Employee Benefit Plans (Expected Future Benefit Payments Related to Defined Benefit Plans) (Detail) $ in Thousands |
Dec. 31, 2017
USD ($)
|
---|---|
Retirement Benefits [Abstract] | |
2018 | $ 9,395 |
2019 | 9,837 |
2020 | 10,230 |
2021 | 10,524 |
2022 | 10,770 |
2023 through 2026 | 55,927 |
Total defined benefit plan expected future benefit payments | $ 106,683 |
Employee Benefit Plans (Shares Issued in Connection with Stock Compensation Awards) (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Retirement Benefits [Abstract] | |||
New shares issued from available authorized shares | 603,842 | 0 | 0 |
Issued from available treasury stock | 547,078 | 1,509,121 | 337,056 |
Total | 1,150,920 | 1,509,121 | 337,056 |
Proceeds from stock option exercises | $ 67,746 | $ 78,866 | $ 14,853 |
Intrinsic value of stock options exercised | 38,275 | 30,935 | 5,766 |
Fair value of stock awards/units vested | $ 4,578 | $ 3,679 | $ 3,728 |
Employee Benefit Plans (Stock-Based Compensation Expense) (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock options | $ 6,230 | $ 8,235 | $ 9,660 |
Non-vested stock awards/stock units | 4,992 | 3,044 | 2,597 |
Deferred stock-units | 519 | 520 | 480 |
Performance stock units | 1,272 | 0 | 0 |
Total | 13,013 | 11,799 | 12,737 |
Income tax benefit | $ 4,555 | $ 4,130 | $ 4,458 |
Employee Benefit Plans (Unrecognized Stock-Based Compensation Expense) (Detail) $ in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2017
USD ($)
| |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |
Stock options | $ 5,575 |
Non-vested stock awards/stock units | 14,953 |
Performance stock units | 5,129 |
Total | $ 25,657 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | 1 year 4 months 17 days |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 11 months 23 days |
Employee service share-based compensation, Performance stock units,compensation cost not yet recognized,period for recognition | 2 years 1 month 24 days |
Other Non-Interest Income and Expense (Narrative) (Detail) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Other Income and Expenses [Abstract] | |||
Minimum percentage of the aggregate total net interest income and total non interest income required for amounts to be stated separately | 1.00% | 1.00% | 1.00% |
Other Non-Interest Income and Expense (Other Non-Interest Income and Expense) (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Other Income and Expenses [Abstract] | |||
Other | $ 37,222 | $ 41,144 | $ 35,656 |
Total other non-interest income | 37,222 | 41,144 | 35,656 |
Advertising, promotions and public relations | 29,337 | 27,677 | 28,858 |
Professional services | 27,968 | 26,664 | 26,283 |
Travel/meals and entertainment | 15,066 | 14,393 | 15,346 |
Check card expense | 12,479 | 15,572 | 13,008 |
Other | 90,439 | 94,682 | 82,066 |
Total other non-interest expense | $ 175,289 | $ 178,988 | $ 165,561 |
Income Taxes (Narrative) (Detail) - USD ($) |
12 Months Ended | |||
---|---|---|---|---|
Dec. 22, 2017 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Income Tax Disclosure [Abstract] | ||||
U.S. federal statutory income tax rate | 21.00% | 35.00% | ||
Provisional deferred tax adjustment related to reduction in U.S. federal statutory income tax rate | $ (4,047,000) | $ 0 | $ 0 | |
Correction for prior year tax-exempt interest | (2,906,000) | 0 | 0 | |
Net tax benefit from stock-based compensation | (9,062,000) | (5,063,000) | $ 0 | |
Valuation allowance | 0 | 0 | ||
Unrecognized tax benefits | $ 0 | $ 0 |
Income Taxes (Income Tax Expense) (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Income Tax Disclosure [Abstract] | |||
Current income tax expense | $ 58,707 | $ 48,748 | $ 59,530 |
Deferred income tax expense (benefit) | (14,493) | (11,598) | (19,059) |
Income tax expense, as reported | $ 44,214 | $ 37,150 | $ 40,471 |
Effective tax rate | 10.80% | 10.90% | 12.70% |
Income Taxes (Income Tax Computed by Applying U.S. Federal Statutory Income Tax Rate) (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Income Tax Disclosure [Abstract] | |||
Income tax expense computed at the statutory rate | $ 142,927 | $ 119,494 | $ 111,930 |
Effect of tax-exempt interest | (81,995) | (75,696) | (70,889) |
Bank owned life insurance income | (1,116) | (1,260) | (1,255) |
Net tax benefit from stock-based compensation | (9,062) | (5,063) | 0 |
Provisional deferred tax adjustment related to reduction in U.S. federal statutory income tax rate | (4,047) | 0 | 0 |
Correction for prior year tax-exempt interest | (2,906) | 0 | 0 |
Other | 413 | (325) | 685 |
Income tax expense, as reported | $ 44,214 | $ 37,150 | $ 40,471 |
Derivative Financial Instruments (Narrative) (Detail) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Derivative [Line Items] | ||
Weighted-average strike rate for outstanding interest rate caps | 3.07% | |
Approximate credit exposure related to swaps with bank customers | $ 30,800 | |
Aggregate fair value of securities posted as collateral for derivative contracts | 10,700 | |
Cash collateral on deposit with other financial institutions | 19,600 | $ 14,700 |
Interest Rate Swaps With Upstream Financial Institution Counterparties [Member] | ||
Derivative [Line Items] | ||
Approximate credit exposure related to swaps with bank customers | 7,600 | |
Not Designated as Hedging Instrument [Member] | Financial Institution Counterparties Loan Lease Interest Rate Swaps Liabilities [Member] | ||
Derivative [Line Items] | ||
Estimated fair value of derivative contracts cleared through Chicago Mercantile Exchange | $ 0 |
Derivative Financial Instruments (Schedule of Amounts Related to Interest Rate Derivatives Designated as Hedges of Fair Value) (Detail) - Designated as Hedging Instrument [Member] - Commercial Loan/Lease Interest Rate Swaps [Member] - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Interest Income on Loans [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount included in income or expense | $ (726) | $ (1,362) | $ (1,796) |
Other Non-Interest Expense [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount included in income or expense | $ (14) | $ (44) | $ 11 |
Fair Value Measurements (Narrative) (Detail) $ in Thousands |
Dec. 31, 2017
USD ($)
Grade
|
Dec. 31, 2016
USD ($)
|
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments using fair value measurement option | $ | $ 0 | $ 0 |
Commodity Swaps And Options [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Weighted average risk grade of loans underlying swaps measured at fair value using significant unobservable inputs | Grade | 12.0 | |
Weighted average loss severity on default of swaps | 15.40% |
Fair Value Measurements (Impaired Loans Remeasured and Reported at Fair Value of Underlying Collateral) (Detail) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying value of impaired loans before allocations | $ 145,610 | $ 94,023 | $ 77,478 |
Specific valuation allowance allocations | (20,820) | (9,186) | (4,378) |
Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying value of impaired loans before allocations | 75,435 | 33,626 | 14,921 |
Specific valuation allowance allocations | (19,533) | (3,961) | (2,765) |
Fair value | $ 55,902 | $ 29,665 | $ 12,156 |
Fair Value Measurements (Foreclosed Assets Remeasured and Reported at Fair Value) (Detail) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreclosed Assets Remeasured at Initial Recognition Carrying Value Of Foreclosed Assets Prior To Remeasurement | $ 279 | $ 756 | $ 1,102 |
Foreclosed Assets Remeasured at Initial Recognition Charge Offs Recognized In Allowance For Loan Losses | 0 | (3) | (169) |
Fair Value of Foreclosed Assets Remeasured at Initial Recognition | 279 | 753 | 933 |
Foreclosed Assets Remeasured Subsequent to Initial Recognition Carrying Value Of Foreclosed Assets Prior To Remeasurement | 89 | 492 | 205 |
Foreclosed Assets Remeasured Subsequent to initial Recognition Write Downs Included In Other Non Interest Expense | (16) | (217) | (36) |
Fair Value of Foreclosed Assets remeasured subsequent to initial recognition | $ 73 | $ 275 | $ 169 |
Operating Segments Operating Segments - Additional Information (Details) $ in Billions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017
USD ($)
Segment
|
Dec. 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
|
Segment Reporting [Abstract] | |||
Number of operating segments | Segment | 2 | ||
Fair value of off-balance sheet managed and custody assets | $ | $ 32.8 | $ 29.3 | $ 30.7 |
!5[UL0%*I':-E$PN<22RU) )-28+TY6T!=D_6^LT6Z&$*L0%
@HIUS+ ]=7O3%ZJ1@5'H4T+<0_]60@-QI?X
MR?A2FE8^+#B H12*Y,?)CTRH1L3@<'V;A[H5 IQM[=R4UVO7KW
MD3M=G_#YWOZDLNEZA4Y"FS/J3E(MA 932G!C&F[-4[$&IMI[=F+N<+,P=:
M#,M;0-8'J?@ 4$L#!!0 ( "R&1TP2*1*UX@$ $% 9 >&PO=V]R
M:W-H965T /8>873R>/28*^A#%BHEQ=FS#")MEQ4CVR\!C_P?LQ
M]YWK2]V8Z*RL>]+AX95*67"E+![<_Z-RDW4,!)36;[=NK_OYT@=6M"I^S0$ )P$ 9 >&PO=V]R:W-H965T
MAWQS/2^_[?NB*27=13#YVR[NW'^ON?CA\3>7[[G3P?/HQ]$_C
MH?KL[63_YE]02P,$% @ +(9'3 T\Z8QB P 2@T !@ !X;"]W;W)K
M!V@3M0*A"AC%\3
M)YU3!N#R_,[^.=:.M9R%@SNC?LK2-QG=4U)")7KE'\WP!:9ZKBF9BO\&%U 8
M'I1@CL(H%U=2],X;/;&@%"U>QEVV<1_&FYO]!%L'\ G 9\ ^YF%CHJC\7GB1
MI]8,Q(Z][T1XXNV!8V^*X(RMB'&UL?5/;;MP@$/T5Q >$7=9-5BO;4C91
ME4JMM$K5YIFUQQ<%& ?P.OW[ G8<)[7Z LPPY\R984@'-,^V 7#D54EM,]HX
MUQT8LT4#2M@K[$#[FPJ-$LZ;IF:V,R#*"%*2\
'J7L6L0FC&G"<-7F-V"8*B^A.!;(4[\/SK?
MIN\W,]Q'^GY-/R3; NFF0!H%TG=+W, <_BV2K7JJP39QFAPIS=#%25YYEX&]
MY_%-_L*G:?\F;",[1R[&X\O&_M?&>,!4DAL
YONRM,';T>$L/8[_ SBNP
M? +W._^9+Q%%I6:2U"6:X4,- 6^VQV.
M6T"]R!$$/)IO,V:> D9B.OS
MA_ICK-W7E,2!?"(1+8%"AF_H$[7N8&1V*F
MWO<\//'NF/K>5,$96Q'O?/+6>Z]EECWD[!J$9LQIPJ0KS&Y!,*^^A$BW0IS2
M_^CI-GV_F>$^TO=K^GVR+9!M"F11(/NGQ,=W)6YA#N^"L%5/%9@V3I,E%0XZ
M3O+*NPSL4QK?Y"]\FO:OW+1"6W)!YU\V]K]!=.!32>[\"'7^@RV&A,:%XZ,_
MFVG,)L-A/_\@MGSC\@]02P,$% @ +(9'3(PULP73 0 G 0 !D !X
M;"]W;W)K
\ZJ^7T?^[
M&3:@HP&]&I#XI@$;#=AO W[3@(\&W# (AE3ZVFPRG:T6M;IX]3"]IZQ[B\@C
M;ZN_[0;[8O>_M>5IVM&W513%B^"M