þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||
For the quarterly period ended March 31, 2019 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||
For the transition period from to |
Wisconsin | 39-1098068 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
433 Main Street Green Bay, Wisconsin | 54301 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer þ | Accelerated filer ¨ |
Non-accelerated filer ¨ | Smaller reporting company ¨ |
Emerging growth company ¨ |
ASSOCIATED BANC-CORP | |
Table of Contents |
Page | ||
Commonly Used Acronyms and Abbreviations |
The following listing provides a reference of common acronyms and abbreviations used throughout the document: |
ABS | Asset-Backed Securities |
ALCO | Asset / Liability Committee |
Anderson | Anderson Insurance and Investment Agency, Inc. |
ASC | Accounting Standards Codification |
ASU | Accounting Standards Update |
Bank Mutual | Bank Mutual Corporation |
Basel III | International framework established by the Basel Committee on Banking Supervision for the regulation of capital and liquidity |
bp | basis point(s) |
CDI | Core Deposit Intangibles |
CET1 | Common Equity Tier 1 |
CMO | Collateralized Mortgage Obligations |
CRA | Community Reinvestment Act |
Diversified | Diversified Insurance Solutions |
EAR | Earnings at Risk |
FASB | Financial Accounting Standards Board |
FDIC | Federal Deposit Insurance Corporation |
FFELP | Federal Family Education Loan Program |
FHLB | Federal Home Loan Bank |
FHLMC | Federal Home Loan Mortgage Corporation |
FNMA | Federal National Mortgage Association |
FTP | Funds Transfer Pricing |
GAAP | Generally Accepted Accounting Principles |
GNMA | Government National Mortgage Association |
GSEs | Government-Sponsored Enterprises |
Huntington | The Huntington National Bank, a subsidiary of Huntington Bancshares Incorporated |
LIBOR | London Interbank Offered Rate |
LTV | Loan-to-Value |
MBS | Mortgage-Backed Securities |
MSR | Mortgage Servicing Rights |
MVE | Market Value of Equity |
NII | Net Interest Income |
NPAs | Nonperforming Assets |
OCI | Other Comprehensive Income |
OREO | Other Real Estate Owned |
RAP | Retirement Account Plan - the Corporation's noncontributory defined benefit retirement plan |
S&P | Standard & Poor's |
SEC | U.S. Securities and Exchange Commission |
Tax Act | U.S. Tax Cuts and Jobs Act of 2017 |
PART I - FINANCIAL INFORMATION | |
ITEM 1. | Financial Statements: |
March 31, 2019 | December 31, 2018 | ||||||
(Unaudited) | (Audited) | ||||||
(In Thousands, except share and per share data) | |||||||
Assets | |||||||
Cash and due from banks | $ | $ | |||||
Interest-bearing deposits in other financial institutions | |||||||
Federal funds sold and securities purchased under agreements to resell | |||||||
Investment securities held to maturity, at amortized cost | |||||||
Investment securities available for sale, at fair value | |||||||
Equity securities with readily determinable fair values | |||||||
Federal Home Loan Bank and Federal Reserve Bank stocks, at cost | |||||||
Residential loans held for sale | |||||||
Commercial loans held for sale | |||||||
Loans | |||||||
Allowance for loan losses | ( | ) | ( | ) | |||
Loans, net | |||||||
Bank and corporate owned life insurance | |||||||
Investment in unconsolidated subsidiaries | |||||||
Trading assets | |||||||
Premises and equipment, net | |||||||
Goodwill | |||||||
Mortgage servicing rights, net | |||||||
Other intangible assets, net | |||||||
Other assets | |||||||
Total assets | $ | $ | |||||
Liabilities and Stockholders' Equity | |||||||
Noninterest-bearing demand deposits | $ | $ | |||||
Interest-bearing deposits | |||||||
Total deposits | |||||||
Federal funds purchased and securities sold under agreements to repurchase | |||||||
Commercial paper | |||||||
FHLB advances | |||||||
Other long-term funding | |||||||
Trading liabilities | |||||||
Accrued expenses and other liabilities | |||||||
Total liabilities | |||||||
Stockholders’ Equity | |||||||
Preferred equity | |||||||
Common equity | |||||||
Common stock | |||||||
Surplus | |||||||
Retained earnings | |||||||
Accumulated other comprehensive income (loss) | ( | ) | ( | ) | |||
Treasury stock, at cost | ( | ) | ( | ) | |||
Total common equity | |||||||
Total stockholders’ equity | |||||||
Total liabilities and stockholders’ equity | $ | $ | |||||
Preferred shares issued | |||||||
Preferred shares authorized (par value $1.00 per share) | |||||||
Common shares issued | |||||||
Common shares authorized (par value $0.01 per share) | |||||||
Treasury shares of common stock |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
(In Thousands, except per share data) | |||||||
Interest income | |||||||
Interest and fees on loans | $ | $ | |||||
Interest and dividends on investment securities | |||||||
Taxable | |||||||
Tax-exempt | |||||||
Other interest | |||||||
Total interest income | |||||||
Interest expense | |||||||
Interest on deposits | |||||||
Interest on Federal funds purchased and securities sold under agreements to repurchase | |||||||
Interest on other short-term funding | |||||||
Interest on FHLB advances | |||||||
Interest on long-term funding | |||||||
Total interest expense | |||||||
Net interest income | |||||||
Provision for credit losses | |||||||
Net interest income after provision for credit losses | |||||||
Noninterest income | |||||||
Insurance commissions and fees | |||||||
Wealth management fees(a) | |||||||
Service charges on deposit account fees | |||||||
Card-based fees | |||||||
Other fee-based revenue | |||||||
Capital markets, net | |||||||
Mortgage banking, net | |||||||
Bank and corporate owned life insurance | |||||||
Asset gains (losses), net | ( | ) | |||||
Investment securities gains (losses), net | |||||||
Other | |||||||
Total noninterest income | |||||||
Noninterest expense | |||||||
Personnel | |||||||
Technology | |||||||
Occupancy | |||||||
Business development and advertising | |||||||
Equipment | |||||||
Legal and professional | |||||||
Card issuance costs | |||||||
Loan costs | |||||||
Foreclosure / OREO expense, net | |||||||
FDIC assessment | |||||||
Other intangible amortization | |||||||
Acquisition related costs(b) | |||||||
Other | |||||||
Total noninterest expense | |||||||
Income before income taxes | |||||||
Income tax expense | |||||||
Net income | |||||||
Preferred stock dividends | |||||||
Net income available to common equity | $ | $ | |||||
Earnings per common share | |||||||
Basic | $ | $ | |||||
Diluted | $ | $ | |||||
Average common shares outstanding | |||||||
Basic | |||||||
Diluted |
Three Months Ended March 31, | ||||||
2019 | 2018 | |||||
($ in Thousands) | ||||||
Net income | $ | $ | ||||
Other comprehensive income, net of tax | ||||||
Investment securities available for sale | ||||||
Net unrealized gains (losses) | ( | ) | ||||
Amortization of net unrealized gain (loss) on available for sale securities transferred to held to maturity securities | ( | ) | ||||
Reclassification adjustment for net losses (gains) realized in net income(a) | ( | ) | ||||
Reclassification from OCI due to change in accounting principle | ( | ) | ||||
Reclassification of certain tax effects from OCI | ( | ) | ||||
Income tax (expense) benefit | ( | ) | ||||
Other comprehensive income (loss) on investment securities available for sale | ( | ) | ||||
Defined benefit pension and postretirement obligations | ||||||
Amortization of prior service cost | ( | ) | ( | ) | ||
Amortization of actuarial loss (gain) | ||||||
Reclassification of certain tax effects from OCI | ( | ) | ||||
Income tax (expense) benefit | ( | ) | ( | ) | ||
Other comprehensive income (loss) on pension and postretirement obligations | ( | ) | ||||
Total other comprehensive income (loss) | ( | ) | ||||
Comprehensive income | $ | $ |
Preferred Equity | Common Stock | Surplus | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total | |||||||||||||||
(In Thousands, except per share data) | |||||||||||||||||||||
Balance, December 31, 2017 | $ | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||||
Comprehensive income | |||||||||||||||||||||
Net income | |||||||||||||||||||||
Other comprehensive income | ( | ) | ( | ) | |||||||||||||||||
Adoption of new accounting standards | ( | ) | ( | ) | |||||||||||||||||
Comprehensive income | |||||||||||||||||||||
Common stock issued | |||||||||||||||||||||
Stock-based compensation plans, net(a) | ( | ) | ( | ) | |||||||||||||||||
Acquisition of Bank Mutual | |||||||||||||||||||||
Purchase of common stock returned to authorized but unissued | ( | ) | ( | ) | ( | ) | |||||||||||||||
Purchase of treasury stock | ( | ) | ( | ) | |||||||||||||||||
Cash dividends | |||||||||||||||||||||
Common stock, $0.15 per share | ( | ) | ( | ) | |||||||||||||||||
Preferred stock | ( | ) | ( | ) | |||||||||||||||||
Purchase of preferred stock | ( | ) | ( | ) | ( | ) | |||||||||||||||
Stock-based compensation expense, net | |||||||||||||||||||||
Tax Act reclassification | |||||||||||||||||||||
Change in accounting principle | |||||||||||||||||||||
Other | |||||||||||||||||||||
Balance, March 31, 2018 | $ | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||||
Balance, December 31, 2018 | $ | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||||
Comprehensive income | |||||||||||||||||||||
Net income | |||||||||||||||||||||
Other comprehensive income | |||||||||||||||||||||
Comprehensive income | |||||||||||||||||||||
Common stock issued | |||||||||||||||||||||
Stock-based compensation plans, net | ( | ) | |||||||||||||||||||
Purchase of treasury stock | ( | ) | ( | ) | |||||||||||||||||
Cash dividends | |||||||||||||||||||||
Common stock, $0.17 per share | ( | ) | ( | ) | |||||||||||||||||
Preferred stock | ( | ) | ( | ) | |||||||||||||||||
Stock-based compensation expense, net | |||||||||||||||||||||
Other | ( | ) | ( | ) | |||||||||||||||||
Balance, March 31, 2019 | $ | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
($ in Thousands) | |||||||
Cash Flow From Operating Activities | |||||||
Net income | $ | $ | |||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||
Provision for credit losses | |||||||
Depreciation and amortization | |||||||
Addition to (recovery of) valuation allowance on mortgage servicing rights, net | ( | ) | |||||
Amortization of mortgage servicing rights | |||||||
Amortization of other intangible assets | |||||||
Amortization and accretion on earning assets, funding, and other, net | |||||||
Net amortization of tax credit investments | |||||||
Losses (gains) on sales of investment securities, net | ( | ) | |||||
Asset (gains) losses, net | ( | ) | |||||
(Gain) loss on mortgage banking activities, net | ( | ) | |||||
Mortgage loans originated and acquired for sale | ( | ) | ( | ) | |||
Proceeds from sales of mortgage loans held for sale | |||||||
Changes in certain assets and liabilities | |||||||
(Increase) decrease in interest receivable | ( | ) | ( | ) | |||
Increase (decrease) in interest payable | ( | ) | |||||
Increase (decrease) in expense payable | ( | ) | ( | ) | |||
Increase (decrease) in cash collateral | ( | ) | ( | ) | |||
Net change in other assets and other liabilities | ( | ) | ( | ) | |||
Net cash provided by (used in) operating activities | ( | ) | |||||
Cash Flow From Investing Activities | |||||||
Net increase in loans | ( | ) | ( | ) | |||
Purchases of | |||||||
Available for sale securities | ( | ) | ( | ) | |||
Held to maturity securities | ( | ) | ( | ) | |||
Federal Home Loan Bank and Federal Reserve Bank stocks | ( | ) | ( | ) | |||
Premises, equipment, and software, net of disposals | ( | ) | ( | ) | |||
Proceeds from | |||||||
Sales of available for sale securities | |||||||
Sale of Federal Home Loan Bank and Federal Reserve Bank stocks | |||||||
Prepayments, calls, and maturities of available for sale investment securities | |||||||
Prepayments, calls, and maturities of held to maturity investment securities | |||||||
Sales, prepayments, calls, and maturities of other assets | |||||||
Net change in tax credit and alternative investments | ( | ) | ( | ) | |||
Net cash (paid) received in acquisition | |||||||
Net cash used in investing activities | ( | ) | ( | ) | |||
Cash Flow From Financing Activities | |||||||
Net increase (decrease) in deposits | ( | ) | |||||
Net increase (decrease) in short-term funding | ( | ) | |||||
Net increase (decrease) in short-term FHLB advances | ( | ) | |||||
Repayment of long-term FHLB advances | ( | ) | ( | ) | |||
Proceeds from long-term FHLB advances | |||||||
Proceeds from issuance of common stock for stock-based compensation plans | |||||||
Purchase of preferred shares | ( | ) | |||||
Purchase of common stock returned to authorized but unissued | ( | ) | |||||
Purchase of treasury stock | ( | ) | ( | ) | |||
Cash dividends on common stock | ( | ) | ( | ) | |||
Cash dividends on preferred stock | ( | ) | ( | ) | |||
Net cash provided by (used in) financing activities | ( | ) | |||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | ( | ) | ( | ) | |||
Cash, cash equivalents, and restricted cash at beginning of period | |||||||
Cash, cash equivalents, and restricted cash at end of period | $ | $ | |||||
Supplemental disclosures of cash flow information | |||||||
Cash paid for interest | $ | $ | |||||
Cash paid for (received from) income and franchise taxes | ( | ) | |||||
Loans and bank premises transferred to other real estate owned | |||||||
Capitalized mortgage servicing rights | |||||||
Loans transferred into held for sale from portfolio, net | |||||||
Unsettled trades to purchase securities | |||||||
Acquisition | |||||||
Fair value of assets acquired, including cash and cash equivalents | |||||||
Fair value ascribed to goodwill and intangible assets | ( | ) | |||||
Fair value of liabilities assumed | |||||||
Equity issued in (adjustments related to) acquisition | ( | ) |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
($ in Thousands) | |||||||
Cash and cash equivalents | $ | $ | |||||
Restricted cash | |||||||
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows | $ | $ |
Standard | Description | Date of adoption | Effect on financial statements | |||
ASU-2018-15 Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract | The FASB issued an amendment which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The amendments in this Update require an entity (customer) in a hosting arrangement that is a service contract to follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. The amendments also require the entity (customer) to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement. The amendment was effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Entities should apply the amendment either retrospectively or prospectively to all implementation costs incurred after the date of adoption. Early adoption was permitted. | 1st Quarter 2019 | The Corporation elected to early adopt this amendment using the prospective approach. No material impact on results of operation, financial position or liquidity. | |||
ASU 2018-09 Codification Improvements | The FASB issued an amendment which affects a wide variety of Topics in the Codification. The amendments apply to all reporting entities within the scope of the affected accounting guidance. The amendments in this Update represent changes to clarify, correct errors in, or make minor improvements to the Codification. The amendments make the Codification easier to understand and easier to apply by eliminating inconsistencies and providing clarifications. The transition and effective date guidance is based on the facts and circumstances of each amendment. Some of the amendments in this Update did not require transition guidance and were effective upon issuance of this Update. However, many of the amendments in this Update did have transition guidance with effective dates for annual periods beginning after December 15, 2018. There are some conforming amendments in this Update that have been made to recently issued guidance that is not yet effective that may require application of the transition and effective date guidance in the original Accounting Standards Update. | 1st Quarter 2019 | No material impact on results of operations, financial position and liquidity. | |||
ASU 2016-02 Leases (Topic 842) | The FASB issued an amendment to provide transparency and comparability among organizations by recognizing lease assets and lease liabilities on the consolidated balance sheets and disclosing key information about leasing arrangements. This amendment will require lessees to recognize the following for all leases (with the exception of short-term leases) at the commencement date: 1) a lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis; and 2) 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. Under the new guidance, lessor accounting is largely unchanged. This amendment was effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018. Entities are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that entities may elect to apply. These practical expedients relate to the identification and classification of leases that commenced before the effective date, initial direct costs for leases that commenced before the effective date, and the ability to use hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset. Early adoption was permitted. ASU 2018-01 permits an entity to elect an optional transition practical expedient to not evaluate under Topic 842 land easements that exist or expired before the entity's adoption of Topic 842. ASU 2018-10 was issued as improvements and clarifications of ASU 2016-02 were identified. This Update provides clarification on narrow aspects of the previously issued updates. ASU 2018-11 was issued to provide entities with an additional (and optional) transition method to adopt the new leases standard under ASU 2016-02. ASU 2019-01 was issued to assist in determining the fair value of underlying asset by lessors, address the presentation to the statements of cash flows, and clarify transition disclosures related to Topic 250. | 1st Quarter 2019 | The Corporation has adopted this amendment utilizing a modified retrospective approach. At adoption, a right-of-use asset and corresponding lease liability were recognized on the Consolidated Balance Sheets for $52 million and $56 million, respectively. See Note 18 for expanded disclosure requirements. |
For the Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
(In Thousands, except per share data) | |||||||
Net income | $ | $ | |||||
Preferred stock dividends | ( | ) | ( | ) | |||
Net income available to common equity | $ | $ | |||||
Common shareholder dividends | ( | ) | ( | ) | |||
Unvested share-based payment awards | ( | ) | ( | ) | |||
Undistributed earnings | $ | $ | |||||
Undistributed earnings allocated to common shareholders | |||||||
Undistributed earnings allocated to unvested share-based payment awards | |||||||
Undistributed earnings | $ | $ | |||||
Basic | |||||||
Distributed earnings to common shareholders | $ | $ | |||||
Undistributed earnings allocated to common shareholders | |||||||
Total common shareholders earnings, basic | $ | $ | |||||
Diluted | |||||||
Distributed earnings to common shareholders | $ | $ | |||||
Undistributed earnings allocated to common shareholders | |||||||
Total common shareholders earnings, diluted | $ | $ | |||||
Weighted average common shares outstanding | |||||||
Effect of dilutive common stock awards | |||||||
Effect of dilutive common stock warrants | |||||||
Diluted weighted average common shares outstanding | |||||||
Basic earnings per common share | $ | $ | |||||
Diluted earnings per common share | $ | $ |
2019 | 2018 | ||||
Dividend yield | % | % | |||
Risk-free interest rate | % | % | |||
Weighted average expected volatility | % | % | |||
Weighted average expected life | |||||
Weighted average per share fair value of options | $ | $ |
Stock Options | Shares(a) | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term | Aggregate Intrinsic Value(a) | |||||
Outstanding at December 31, 2018 | $ | $ | |||||||
Granted | |||||||||
Exercised | ( | ) | |||||||
Forfeited or expired | ( | ) | |||||||
Outstanding at March 31, 2019 | $ | $ | |||||||
Options Exercisable at March 31, 2019 | $ | $ |
Restricted Stock Awards | Shares(a) | Weighted Average Grant Date Fair Value | ||||
Outstanding at December 31, 2018 | $ | |||||
Granted | ||||||
Vested | ( | ) | ||||
Forfeited | ( | ) | ||||
Outstanding at March 31, 2019 | $ |
March 31, 2019 | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
($ in Thousands) | ||||||||||||||||
Investment securities available for sale | ||||||||||||||||
Residential mortgage-related securities | ||||||||||||||||
FNMA / FHLMC | $ | $ | $ | ( | ) | $ | ||||||||||
GNMA | ( | ) | ||||||||||||||
Private-label | ||||||||||||||||
Commercial mortgage-related securities | ||||||||||||||||
FNMA / FHLMC | ||||||||||||||||
GNMA | ( | ) | ||||||||||||||
FFELP asset backed securities | ( | ) | ||||||||||||||
Other debt securities | ||||||||||||||||
Total investment securities available for sale | $ | $ | $ | ( | ) | $ | ||||||||||
Investment securities held to maturity | ||||||||||||||||
U. S. Treasury securities | $ | $ | $ | $ | ||||||||||||
Obligations of state and political subdivisions (municipal securities) | ( | ) | ||||||||||||||
Residential mortgage-related securities | ||||||||||||||||
FNMA / FHLMC | ( | ) | ||||||||||||||
GNMA | ( | ) | ||||||||||||||
GNMA commercial mortgage-related securities | ( | ) | ||||||||||||||
Total investment securities held to maturity | $ | $ | $ | ( | ) | $ |
December 31, 2018 | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
($ in Thousands) | ||||||||||||||||
Investment securities available for sale | ||||||||||||||||
U. S. Treasury securities | $ | $ | $ | ( | ) | $ | ||||||||||
Residential mortgage-related securities | ||||||||||||||||
FNMA / FHLMC | ( | ) | ||||||||||||||
GNMA | ( | ) | ||||||||||||||
Private-label | ( | ) | ||||||||||||||
GNMA commercial mortgage-related securities | ( | ) | ||||||||||||||
FFELP asset backed securities | ( | ) | ||||||||||||||
Other debt securities | ||||||||||||||||
Total investment securities available for sale | $ | $ | $ | ( | ) | $ | ||||||||||
Investment securities held to maturity | ||||||||||||||||
Obligations of state and political subdivisions (municipal securities) | $ | $ | $ | ( | ) | $ | ||||||||||
Residential mortgage-related securities | ||||||||||||||||
FNMA / FHLMC | ( | ) | ||||||||||||||
GNMA | ( | ) | ||||||||||||||
GNMA commercial mortgage-related securities | ( | ) | ||||||||||||||
Total investment securities held to maturity | $ | $ | $ | ( | ) | $ |
Available for Sale | Held to Maturity | ||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||
($ in Thousands) | |||||||||||||||
Due in one year or less | $ | $ | $ | $ | |||||||||||
Due after one year through five years | |||||||||||||||
Due after five years through ten years | |||||||||||||||
Due after ten years | |||||||||||||||
Total debt securities | |||||||||||||||
Residential mortgage-related securities | |||||||||||||||
FNMA / FHLMC | |||||||||||||||
GNMA | |||||||||||||||
Private-label | |||||||||||||||
Commercial mortgage-related securities | |||||||||||||||
FNMA / FHLMC | |||||||||||||||
GNMA | |||||||||||||||
FFELP asset backed securities | |||||||||||||||
Total investment securities | $ | $ | $ | $ | |||||||||||
Ratio of fair value to amortized cost | % | % |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
($ in Thousands) | |||||||
Gross gains on available for sale securities | $ | $ | |||||
Gross gains on held to maturity securities | |||||||
Total gains | |||||||
Gross losses on available for sale securities | |||||||
Gross losses on held to maturity securities | |||||||
Total losses | |||||||
Investment securities gains (losses), net | $ | $ | |||||
Proceeds from sales of investment securities | $ | $ |
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||||||
March 31, 2019 | Number of Securities | Unrealized Losses | Fair Value | Number of Securities | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | |||||||||||||||||||||
($ in Thousands) | |||||||||||||||||||||||||||||
Investment securities available for sale | |||||||||||||||||||||||||||||
Residential mortgage-related securities | |||||||||||||||||||||||||||||
FNMA / FHLMC | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) | $ | |||||||||||||||||
GNMA | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||
GNMA commercial mortgage-related securities | ( | ) | ( | ) | |||||||||||||||||||||||||
FFELP asset backed securities | ( | ) | ( | ) | |||||||||||||||||||||||||
Total | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) | $ | |||||||||||||||||
Investment securities held to maturity | |||||||||||||||||||||||||||||
Obligations of state and political subdivisions (municipal securities) | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) | $ | |||||||||||||||||
Residential mortgage-related securities | |||||||||||||||||||||||||||||
FNMA / FHLMC | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||
GNMA | ( | ) | ( | ) | |||||||||||||||||||||||||
GNMA commercial mortgage-related securities | ( | ) | ( | ) | |||||||||||||||||||||||||
Total | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) | $ |
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||||||
December 31, 2018 | Number of Securities | Unrealized Losses | Fair Value | Number of Securities | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | |||||||||||||||||||||
($ in Thousands) | |||||||||||||||||||||||||||||
Investment securities available for sale | |||||||||||||||||||||||||||||
U.S. Treasury securities | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | |||||||||||||||||||
Residential mortgage-related securities | |||||||||||||||||||||||||||||
FNMA / FHLMC | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||
GNMA | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||
Private-label | ( | ) | ( | ) | |||||||||||||||||||||||||
GNMA commercial mortgage-related securities | ( | ) | ( | ) | |||||||||||||||||||||||||
FFELP asset backed securities | ( | ) | ( | ) | |||||||||||||||||||||||||
Total | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) | $ | |||||||||||||||||
Investment securities held to maturity | |||||||||||||||||||||||||||||
Obligations of state and political subdivisions (municipal securities) | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) | $ | |||||||||||||||||
Residential mortgage-related securities | |||||||||||||||||||||||||||||
FNMA / FHLMC | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||
GNMA | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||
GNMA commercial mortgage-related securities | ( | ) | ( | ) | |||||||||||||||||||||||||
Total | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) | $ |
March 31, 2019(a) | December 31, 2018(a) | ||||||
($ in Thousands) | |||||||
Commercial and industrial | $ | $ | |||||
Commercial real estate — owner occupied | |||||||
Commercial and business lending | |||||||
Commercial real estate — investor | |||||||
Real estate construction | |||||||
Commercial real estate lending | |||||||
Total commercial | |||||||
Residential mortgage | |||||||
Home equity | |||||||
Other consumer | |||||||
Total consumer | |||||||
Total loans | $ | $ |
Pass | Special Mention | Potential Problem | Nonaccrual | Total | |||||||||||||||
($ in Thousands) | |||||||||||||||||||
Commercial and industrial | $ | $ | $ | $ | $ | ||||||||||||||
Commercial real estate - owner occupied | |||||||||||||||||||
Commercial and business lending | |||||||||||||||||||
Commercial real estate - investor | |||||||||||||||||||
Real estate construction | |||||||||||||||||||
Commercial real estate lending | |||||||||||||||||||
Total commercial | |||||||||||||||||||
Residential mortgage | |||||||||||||||||||
Home equity | |||||||||||||||||||
Other consumer | |||||||||||||||||||
Total consumer | |||||||||||||||||||
Total loans | $ | $ | $ | $ | $ |
Pass | Special Mention | Potential Problem | Nonaccrual | Total | |||||||||||||||
($ in Thousands) | |||||||||||||||||||
Commercial and industrial | $ | $ | $ | $ | $ | ||||||||||||||
Commercial real estate - owner occupied | |||||||||||||||||||
Commercial and business lending | |||||||||||||||||||
Commercial real estate - investor | |||||||||||||||||||
Real estate construction | |||||||||||||||||||
Commercial real estate lending | |||||||||||||||||||
Total commercial | |||||||||||||||||||
Residential mortgage | |||||||||||||||||||
Home equity | |||||||||||||||||||
Other consumer | |||||||||||||||||||
Total consumer | |||||||||||||||||||
Total loans | $ | $ | $ | $ | $ |
Accruing | |||||||||||||||||||||||
Current | 30-59 Days Past Due | 60-89 Days Past Due | 90 Days or More Past Due | Nonaccrual(a) | Total | ||||||||||||||||||
($ in Thousands) | |||||||||||||||||||||||
Commercial and industrial | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Commercial real estate - owner occupied | |||||||||||||||||||||||
Commercial and business lending | |||||||||||||||||||||||
Commercial real estate - investor | |||||||||||||||||||||||
Real estate construction | |||||||||||||||||||||||
Commercial real estate lending | |||||||||||||||||||||||
Total commercial | |||||||||||||||||||||||
Residential mortgage | |||||||||||||||||||||||
Home equity | |||||||||||||||||||||||
Other consumer | |||||||||||||||||||||||
Total consumer | |||||||||||||||||||||||
Total loans | $ | $ | $ | $ | $ | $ |
Accruing | |||||||||||||||||||||||
Current | 30-59 Days Past Due | 60-89 Days Past Due | 90 Days or More Past Due | Nonaccrual(a) | Total | ||||||||||||||||||
($ in Thousands) | |||||||||||||||||||||||
Commercial and industrial | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Commercial real estate - owner occupied | |||||||||||||||||||||||
Commercial and business lending | |||||||||||||||||||||||
Commercial real estate - investor | |||||||||||||||||||||||
Real estate construction | |||||||||||||||||||||||
Commercial real estate lending | |||||||||||||||||||||||
Total commercial | |||||||||||||||||||||||
Residential mortgage | |||||||||||||||||||||||
Home equity | |||||||||||||||||||||||
Other consumer | |||||||||||||||||||||||
Total consumer | |||||||||||||||||||||||
Total loans | $ | $ | $ | $ | $ | $ |
Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | |||||||||||||||
($ in Thousands) | |||||||||||||||||||
Loans with a related allowance | |||||||||||||||||||
Commercial and industrial | $ | $ | $ | $ | $ | ||||||||||||||
Commercial real estate — owner occupied | |||||||||||||||||||
Commercial and business lending | |||||||||||||||||||
Commercial real estate — investor | |||||||||||||||||||
Real estate construction | |||||||||||||||||||
Commercial real estate lending | |||||||||||||||||||
Total commercial | |||||||||||||||||||
Residential mortgage | |||||||||||||||||||
Home equity | |||||||||||||||||||
Other consumer | |||||||||||||||||||
Total consumer | |||||||||||||||||||
Total loans(a) | $ | $ | $ | $ | $ | ||||||||||||||
Loans with no related allowance | |||||||||||||||||||
Commercial and industrial | $ | $ | $ | $ | $ | ||||||||||||||
Commercial real estate — owner occupied | |||||||||||||||||||
Commercial and business lending | |||||||||||||||||||
Commercial real estate — investor | |||||||||||||||||||
Real estate construction | |||||||||||||||||||
Commercial real estate lending | |||||||||||||||||||
Total commercial | |||||||||||||||||||
Residential mortgage | |||||||||||||||||||
Home equity | |||||||||||||||||||
Other consumer | |||||||||||||||||||
Total consumer | |||||||||||||||||||
Total loans(a) | $ | $ | $ | $ | $ | ||||||||||||||
Total | |||||||||||||||||||
Commercial and industrial | $ | $ | $ | $ | $ | ||||||||||||||
Commercial real estate — owner occupied | |||||||||||||||||||
Commercial and business lending | |||||||||||||||||||
Commercial real estate — investor | |||||||||||||||||||
Real estate construction | |||||||||||||||||||
Commercial real estate lending | |||||||||||||||||||
Total commercial | |||||||||||||||||||
Residential mortgage | |||||||||||||||||||
Home equity | |||||||||||||||||||
Other consumer | |||||||||||||||||||
Total consumer | |||||||||||||||||||
Total loans(a) | $ | $ | $ | $ | $ |
Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | |||||||||||||||
($ in Thousands) | |||||||||||||||||||
Loans with a related allowance | |||||||||||||||||||
Commercial and industrial | $ | $ | $ | $ | $ | ||||||||||||||
Commercial real estate — owner occupied | |||||||||||||||||||
Commercial and business lending | |||||||||||||||||||
Commercial real estate — investor | |||||||||||||||||||
Real estate construction | |||||||||||||||||||
Commercial real estate lending | |||||||||||||||||||
Total commercial | |||||||||||||||||||
Residential mortgage | |||||||||||||||||||
Home equity | |||||||||||||||||||
Other consumer | |||||||||||||||||||
Total consumer | |||||||||||||||||||
Total loans(a) | $ | $ | $ | $ | $ | ||||||||||||||
Loans with no related allowance | |||||||||||||||||||
Commercial and industrial | $ | $ | $ | $ | $ | ( | ) | ||||||||||||
Commercial real estate — owner occupied | |||||||||||||||||||
Commercial and business lending | ( | ) | |||||||||||||||||
Commercial real estate — investor | |||||||||||||||||||
Real estate construction | |||||||||||||||||||
Commercial real estate lending | |||||||||||||||||||
Total commercial | ( | ) | |||||||||||||||||
Residential mortgage | |||||||||||||||||||
Home equity | |||||||||||||||||||
Other consumer | |||||||||||||||||||
Total consumer | |||||||||||||||||||
Total loans(a) | $ | $ | $ | $ | $ | ( | ) | ||||||||||||
Total | |||||||||||||||||||
Commercial and industrial | $ | $ | $ | $ | $ | ||||||||||||||
Commercial real estate — owner occupied | |||||||||||||||||||
Commercial and business lending | |||||||||||||||||||
Commercial real estate — investor | |||||||||||||||||||
Real estate construction | |||||||||||||||||||
Commercial real estate lending | |||||||||||||||||||
Total commercial | |||||||||||||||||||
Residential mortgage | |||||||||||||||||||
Home equity | |||||||||||||||||||
Other consumer | |||||||||||||||||||
Total consumer | |||||||||||||||||||
Total loans(a) | $ | $ | $ | $ | $ |
March 31, 2019 | December 31, 2018 | ||||||||||||||
Performing Restructured Loans | Nonaccrual Restructured Loans(a) | Performing Restructured Loans | Nonaccrual Restructured Loans(a) | ||||||||||||
($ in Thousands) | |||||||||||||||
Commercial and industrial | $ | $ | $ | $ | |||||||||||
Commercial real estate — owner occupied | |||||||||||||||
Commercial real estate — investor | |||||||||||||||
Real estate construction | |||||||||||||||
Residential mortgage | |||||||||||||||
Home equity | |||||||||||||||
Other consumer | |||||||||||||||
Total restructured loans | $ | $ | $ | $ |
Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | ||||||||||||||||||||
Number of Loans | Recorded Investment(a) | Unpaid Principal Balance(b) | Number of Loans | Recorded Investment(a) | Unpaid Principal Balance(b) | ||||||||||||||||
($ in Thousands) | |||||||||||||||||||||
Commercial and industrial | $ | $ | $ | $ | |||||||||||||||||
Commercial real estate — owner occupied | |||||||||||||||||||||
Commercial real estate — investor | |||||||||||||||||||||
Residential mortgage | |||||||||||||||||||||
Home equity | |||||||||||||||||||||
Other consumer | |||||||||||||||||||||
Total loans modified | $ | $ | $ | $ |
Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | ||||||||||||
Number of Loans | Recorded Investment | Number of Loans | Recorded Investment | ||||||||||
($ in Thousands) | |||||||||||||
Residential mortgage | $ | $ | |||||||||||
Home equity | |||||||||||||
Total loans modified | $ | $ |
($ in Thousands) | Commercial and industrial | Commercial real estate - owner occupied | Commercial real estate - investor | Real estate construction | Residential mortgage | Home equity | Other consumer | Total | ||||||||||||||||
December 31, 2018 | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Charge offs | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||
Recoveries | ||||||||||||||||||||||||
Net Charge offs | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||
Provision for loan losses | ( | ) | ( | ) | ( | ) | ||||||||||||||||||
March 31, 2019 | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Allowance for loan losses | ||||||||||||||||||||||||
Individually evaluated for impairment | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Collectively evaluated for impairment | ||||||||||||||||||||||||
Acquired and accounted for under ASC 310-30(a) | ||||||||||||||||||||||||
Total allowance for loan losses | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Loans | ||||||||||||||||||||||||
Individually evaluated for impairment | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Collectively evaluated for impairment | ||||||||||||||||||||||||
Acquired and accounted for under ASC 310-30(a) | ||||||||||||||||||||||||
Total loans | $ | $ | $ | $ | $ | $ | $ | $ |
($ in Thousands) | Commercial and industrial | Commercial real estate - owner occupied | Commercial real estate - investor | Real estate construction | Residential mortgage | Home equity | Other consumer | Total | ||||||||||||||||
December 31, 2017 | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Charge offs | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Recoveries | ||||||||||||||||||||||||
Net Charge offs | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||
Provision for loan losses | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||
December 31, 2018 | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Allowance for loan losses | ||||||||||||||||||||||||
Individually evaluated for impairment | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Collectively evaluated for impairment | ||||||||||||||||||||||||
Acquired and accounted for under ASC 310-30(a) | ||||||||||||||||||||||||
Total allowance for loan losses | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Loans | ||||||||||||||||||||||||
Individually evaluated for impairment | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Collectively evaluated for impairment | ||||||||||||||||||||||||
Acquired and accounted for under ASC 310-30(a) | ||||||||||||||||||||||||
Total loans | $ | $ | $ | $ | $ | $ | $ | $ |
Three Months Ended March 31, 2019 | Year Ended December 31, 2018 | ||||||
($ in Thousands) | |||||||
Allowance for Unfunded Commitments | |||||||
Balance at beginning of period | $ | $ | |||||
Provision for unfunded commitments | ( | ) | |||||
Amount recorded at acquisition | |||||||
Balance at end of period | $ | $ |
• | Performing loans are accounted for in accordance with ASC Topic 310-20 "Nonrefundable Fees and Other Costs" as these loans do not have evidence of credit deterioration since origination. |
• | Nonperforming loans are accounted for in accordance with ASC Topic 310-30 as they display significant credit deterioration since origination. |
Three Months Ended March 31, 2019 | Year Ended December 31, 2018 | ||||||
($ in Thousands) | |||||||
Changes in Accretable Yield | |||||||
Balance at beginning of period | $ | $ | |||||
Purchases | |||||||
Accretion | ( | ) | ( | ) | |||
Net reclassification from non-accretable yield | |||||||
Other(a) | ( | ) | |||||
Balance at end of period | $ | $ |
Three Months Ended March 31, 2019 | Year Ended December 31, 2018 | ||||||
($ in Thousands) | |||||||
Core deposit intangibles | |||||||
Gross carrying amount | $ | $ | |||||
Accumulated amortization | ( | ) | ( | ) | |||
Net book value | $ | $ | |||||
Additions during the periods | $ | $ | |||||
Amortization during the year | $ | $ | |||||
Other intangibles | |||||||
Gross carrying amount | $ | $ | |||||
Reductions due to sale | ( | ) | |||||
Accumulated amortization | ( | ) | ( | ) | |||
Net book value | $ | $ | |||||
Additions during the period | $ | $ | |||||
Amortization during the year | $ | $ |
Three Months Ended March 31, 2019 | Year Ended December 31, 2018 | ||||||
($ in Thousands) | |||||||
Mortgage servicing rights | |||||||
Mortgage servicing rights at beginning of period | $ | $ | |||||
Additions from acquisition | |||||||
Additions | |||||||
Amortization | ( | ) | ( | ) | |||
Mortgage servicing rights at end of period | $ | $ | |||||
Valuation allowance at beginning of period | ( | ) | ( | ) | |||
(Additions) recoveries, net | ( | ) | |||||
Valuation allowance at end of period | ( | ) | ( | ) | |||
Mortgage servicing rights, net | $ | $ | |||||
Fair value of mortgage servicing rights | $ | $ | |||||
Portfolio of residential mortgage loans serviced for others (“servicing portfolio”) | $ | $ | |||||
Mortgage servicing rights, net to servicing portfolio | % | % | |||||
Mortgage servicing rights expense(a) | $ | $ |
Estimated Amortization Expense | Core Deposit Intangibles | Other Intangibles | Mortgage Servicing Rights | ||||||||
($ in Thousands) | |||||||||||
Nine Months Ending December 31, 2019 | $ | $ | $ | ||||||||
2020 | |||||||||||
2021 | |||||||||||
2022 | |||||||||||
2023 | |||||||||||
2024 | |||||||||||
Beyond 2024 | |||||||||||
Total Estimated Amortization Expense | $ | $ | $ |
March 31, 2019 | December 31, 2018 | ||||||
($ in Thousands) | |||||||
Short-Term Funding | |||||||
Federal funds purchased | $ | $ | |||||
Securities sold under agreements to repurchase | |||||||
Federal funds purchased and securities sold under agreements to repurchase | |||||||
Commercial paper | |||||||
Total short-term funding | $ | $ | |||||
Long-Term Funding | |||||||
Corporation senior notes, at par, due 2019 | $ | $ | |||||
Bank senior notes, at par, due 2021 | |||||||
Corporation subordinated notes, at par, due 2025 | |||||||
Other long-term funding and capitalized costs | ( | ) | ( | ) | |||
Total long-term funding | |||||||
Total short and long-term funding, excluding FHLB advances | $ | $ | |||||
FHLB Advances | |||||||
Short-term FHLB advances | $ | $ | |||||
Long-term FHLB advances | |||||||
Total FHLB advances | $ | $ | |||||
Total short and long-term funding | $ | $ |
Remaining Contractual Maturity of the Agreements | |||||||||||||||||||
Overnight and Continuous | Up to 30 days | 30-90 days | Greater than 90 days | Total | |||||||||||||||
($ in Thousands) | |||||||||||||||||||
March 31, 2019 | |||||||||||||||||||
Repurchase agreements | |||||||||||||||||||
Agency mortgage-related securities | $ | $ | $ | $ | $ | ||||||||||||||
Total | $ | $ | $ | $ | $ | ||||||||||||||
December 31, 2018 | |||||||||||||||||||
Repurchase agreements | |||||||||||||||||||
Agency mortgage-related securities | $ | $ | $ | $ | $ | ||||||||||||||
Total | $ | $ | $ | $ | $ |
March 31, 2019 | December 31, 2018 | ||||||||||||
Amount | Weighted Average Contractual Coupon Rate | Amount | Weighted Average Contractual Coupon Rate | ||||||||||
($ in Thousands) | |||||||||||||
Maturity or put date 1 year or less | $ | % | $ | % | |||||||||
After 1 but within 2 | % | % | |||||||||||
After 2 but within 3 | % | % | |||||||||||
After 3 years | % | % | |||||||||||
FHLB advances and overall rate | $ | % | $ | % |
March 31, 2019 | December 31, 2018 | ||||||||||||||||||
($ in Thousands) | Notional Amount | Fair Value | Consolidated Balance Sheets Category | Notional Amount | Fair Value | Consolidated Balance Sheets Category | |||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||
Interest rate-related instruments — customer and mirror | $ | $ | Trading assets | $ | $ | Trading assets | |||||||||||||
Interest rate-related instruments — customer and mirror | ( | ) | Trading liabilities | ( | ) | Trading liabilities | |||||||||||||
Foreign currency exchange forwards | Trading assets | Trading assets | |||||||||||||||||
Foreign currency exchange forwards | ( | ) | Trading liabilities | ( | ) | Trading liabilities | |||||||||||||
Commodity contracts | Trading assets | Trading assets | |||||||||||||||||
Commodity contracts | ( | ) | Trading liabilities | ( | ) | Trading liabilities | |||||||||||||
Interest rate lock commitments (mortgage) | Other assets | Other assets | |||||||||||||||||
Forward commitments (mortgage) | ( | ) | Other liabilities | ( | ) | Other liabilities | |||||||||||||
Purchased options (time deposit) | Other assets | Other assets | |||||||||||||||||
Written options (time deposit) | ( | ) | Other liabilities | ( | ) | Other liabilities | |||||||||||||
Derivatives designated as hedging instruments | |||||||||||||||||||
Interest Rate Products | ( | ) | Other liabilities | ( | ) | Other liabilities |
Line Item in the Statement of Financial Position in Which the Hedged Item is Included | |||||||
Carrying Amount of the Hedged Assets/(Liabilities) | Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) | ||||||
($ in Thousands) | March 31, 2019 | ||||||
Loans and investment securities receivables(a) | $ | $ | |||||
Total | $ | $ |
Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships | ||||||||||||
Three Months Ended March 31, 2019 | Year Ended December 31, 2018 | |||||||||||
($ in Thousands) | Interest Income | Other Income (Expense) | Interest Income | Other Income (Expense) | ||||||||
Total amounts of income and expense line items presented in the consolidated statements of income in which the effects of fair value or cash flow hedges are recorded | $ | $ | $ | ( | ) | $ | ||||||
The effects of fair value and cash flow hedging: Gain or (loss) on fair value hedging relationships in Subtopic 815-20 | ||||||||||||
Interest contracts | ||||||||||||
Hedged items | ( | ) | ||||||||||
Derivatives designated as hedging instruments(a) | ( | ) | ( | ) |
Consolidated Statements of Income Category of Gain / (Loss) Recognized in Income | For the Three Months Ended March 31, | |||||||
($ in Thousands) | 2019 | 2018 | ||||||
Derivative Instruments | ||||||||
Interest rate-related instruments — customer and mirror, net | Capital markets, net | $ | ( | ) | $ | |||
Foreign currency exchange forwards | Capital markets, net | ( | ) | |||||
Commodity contracts | Capital markets, net | ( | ) | |||||
Interest rate lock commitments (mortgage) | Mortgage banking, net | |||||||
Forward commitments (mortgage) | Mortgage banking, net |
Gross amounts of recognized assets | Gross amounts not offset in the consolidated balance sheets | ||||||||||||||||||||||
($ in Thousands) | Gross amounts offset in the balance sheet | Net amounts presented in the balance sheet | Derivative liability available for offset | Collateral received | Net amount | ||||||||||||||||||
Derivative assets(a) | |||||||||||||||||||||||
March 31, 2019 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | |||||||||||||
December 31, 2018 | ( | ) | ( | ) | |||||||||||||||||||
Gross amounts of recognized liabilities | Gross amounts not offset in the consolidated balance sheets | ||||||||||||||||||||||
($ in Thousands) | Gross amounts offset in the balance sheet | Net amounts presented in the balance sheet | Derivative asset available for offset | Collateral pledged | Net amount | ||||||||||||||||||
Derivative liabilities(b) | |||||||||||||||||||||||
March 31, 2019 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | |||||||||||||
December 31, 2018 | ( | ) | ( | ) | |||||||||||||||||||
(a) Includes interest and commodity instrument assets. (b) Includes interest and commodity instrument liabilities. |
March 31, 2019 | December 31, 2018 | |||||
($ in Thousands) | ||||||
Commitments to extend credit, excluding commitments to originate residential mortgage loans held for sale(a)(b) | $ | $ | ||||
Commercial letters of credit(a) | ||||||
Standby letters of credit(c) |
Three Months Ended March 31, 2019 | Year Ended December 31, 2018 | ||||||
($ in Thousands) | |||||||
Balance at beginning of period | $ | $ | |||||
Repurchase provision expense | |||||||
Adjustments to provision expense | ( | ) | |||||
Charge offs, net | ( | ) | ( | ) | |||
Amount recorded at acquisition | |||||||
Balance at end of period | $ | $ |
Fair Value Hierarchy | March 31, 2019 | December 31, 2018 | |||||||
($ in Thousands) | |||||||||
Assets | |||||||||
Investment securities available for sale | |||||||||
U.S. Treasury securities | Level 1 | $ | $ | ||||||
Residential mortgage-related securities | |||||||||
FNMA / FHLMC | Level 2 | ||||||||
GNMA | Level 2 | ||||||||
Private-label | Level 2 | ||||||||
Commercial mortgage-related securities | |||||||||
FNMA / FHLMC | Level 2 | ||||||||
GNMA | Level 2 | ||||||||
FFELP asset backed securities | Level 2 | ||||||||
Other debt securities | Level 2 | ||||||||
Total investment securities available for sale | Level 1 | ||||||||
Total investment securities available for sale | Level 2 | ||||||||
Equity securities with readily determinable fair values | Level 1 | ||||||||
Residential loans held for sale | Level 2 | ||||||||
Commercial loans held for sale | Level 2 | ||||||||
Interest rate-related instruments | Level 2 | ||||||||
Foreign currency exchange forwards | Level 2 | ||||||||
Interest rate lock commitments to originate residential mortgage loans held for sale | Level 3 | ||||||||
Commodity contracts | Level 2 | ||||||||
Purchased options (time deposit) | Level 2 | ||||||||
Liabilities | |||||||||
Interest rate-related instruments | Level 2 | $ | $ | ||||||
Foreign currency exchange forwards | Level 2 | ||||||||
Forward commitments to sell residential mortgage loans | Level 3 | ||||||||
Commodity contracts | Level 2 | ||||||||
Written options (time deposit) | Level 2 | ||||||||
Interest rate products (designated as hedging instruments) | Level 2 |
Derivative Financial Instruments | |||
($ in Thousands) | |||
Balance December 31, 2017 | $ | ||
Total net gains (losses) included in income | |||
Mortgage derivative gain (loss) | ( | ) | |
Balance December 31, 2018 | $ | ||
Total net gains (losses) included in income | |||
Mortgage derivative gain (loss) | |||
Balance March 31, 2019 | $ |
Consolidated Statements of Income Category of Adjustment Recognized in Income | Adjustment Recognized in the Consolidated Statements of Income | |||||||||
($ in Thousands) | Fair Value Hierarchy | Fair Value | ||||||||
March 31, 2019 | ||||||||||
Assets | ||||||||||
Impaired loans(a) | Level 3 | $ | Provision for credit losses(b) | $ | ( | ) | ||||
Other real estate owned(c) | Level 2 | Foreclosure / OREO expense, net | ( | ) | ||||||
Mortgage servicing rights | Level 3 | Mortgage banking, net | ( | ) | ||||||
December 31, 2018 | ||||||||||
Assets | ||||||||||
Impaired loans(a) | Level 3 | $ | Provision for credit losses(b) | $ | ( | ) | ||||
Other real estate owned(c) | Level 2 | Foreclosure / OREO expense, net | ( | ) | ||||||
Mortgage servicing rights | Level 3 | Mortgage banking, net |
Valuation Technique | Significant Unobservable Input | Weighted Average Input Applied | |||
March 31, 2019 | |||||
Mortgage servicing rights | Discounted cash flow | Discount rate | |||
Mortgage servicing rights | Discounted cash flow | Constant prepayment rate | |||
Impaired Loans | Appraisals / Discounted cash flow | Collateral / Discount factor |
March 31, 2019 | December 31, 2018 | ||||||||||||||||
Fair Value Hierarchy Level | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||
($ in Thousands) | |||||||||||||||||
Financial assets | |||||||||||||||||
Cash and due from banks | Level 1 | $ | $ | $ | $ | ||||||||||||
Interest-bearing deposits in other financial institutions | Level 1 | ||||||||||||||||
Federal funds sold and securities purchased under agreements to resell | Level 1 | ||||||||||||||||
Investment securities held to maturity | Level 1 | ||||||||||||||||
Investment securities held to maturity | Level 2 | ||||||||||||||||
Investment securities available for sale | Level 1 | ||||||||||||||||
Investment securities available for sale | Level 2 | ||||||||||||||||
Equity securities with readily determinable fair values | Level 1 | ||||||||||||||||
FHLB and Federal Reserve Bank stocks | Level 2 | ||||||||||||||||
Residential loans held for sale | Level 2 | ||||||||||||||||
Commercial loans held for sale | Level 2 | ||||||||||||||||
Loans, net | Level 3 | ||||||||||||||||
Bank and corporate owned life insurance | Level 2 | ||||||||||||||||
Derivatives (trading assets) | Level 2 | ||||||||||||||||
Derivatives (other assets) | Level 2 | ||||||||||||||||
Interest rate lock commitments to originate residential mortgage loans held for sale | Level 3 | ||||||||||||||||
Financial liabilities | |||||||||||||||||
Noninterest-bearing demand, savings, interest-bearing demand, and money market accounts | Level 3 | $ | $ | $ | $ | ||||||||||||
Brokered CDs and other time deposits(a) | Level 2 | ||||||||||||||||
Short-term funding(b) | Level 2 | ||||||||||||||||
Long-term funding | Level 2 | ||||||||||||||||
Standby letters of credit(c) | Level 2 | ||||||||||||||||
Derivatives (trading liabilities) | Level 2 | ||||||||||||||||
Derivatives (other liabilities) | Level 2 | ||||||||||||||||
Forward commitments to sell residential mortgage loans | Level 3 |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
($ in Thousands) | |||||||
Components of Net Periodic Benefit Cost | |||||||
RAP | |||||||
Service cost | $ | $ | |||||
Interest cost | |||||||
Expected return on plan assets | ( | ) | ( | ) | |||
Amortization of prior service cost | ( | ) | ( | ) | |||
Amortization of actuarial loss | |||||||
Total net periodic pension cost | $ | ( | ) | $ | ( | ) | |
Bank Mutual Pension Plan | |||||||
Interest cost | N/A | $ | |||||
Expected return on plan assets | N/A | ( | ) | ||||
Total net periodic pension cost | N/A | $ | ( | ) | |||
Postretirement Plan | |||||||
Interest cost | $ | $ | |||||
Amortization of prior service cost | ( | ) | ( | ) | |||
Amortization of actuarial loss | ( | ) | |||||
Total net periodic benefit cost | $ | $ |
Corporate and Commercial Specialty | |||||||
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
($ in Thousands) | |||||||
Net interest income | $ | $ | |||||
Net intersegment interest income (expense) | ( | ) | ( | ) | |||
Segment net interest income | |||||||
Noninterest income | |||||||
Total revenue | |||||||
Credit provision | |||||||
Noninterest expense | |||||||
Income (loss) before income taxes | |||||||
Income tax expense (benefit) | |||||||
Net income | $ | $ | |||||
Allocated goodwill | $ | $ |
Community, Consumer, and Business | |||||||
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
($ in Thousands) | |||||||
Net interest income | $ | $ | |||||
Net intersegment interest income (expense) | |||||||
Segment net interest income | |||||||
Noninterest income | |||||||
Total revenue | |||||||
Credit provision | |||||||
Noninterest expense | |||||||
Income (loss) before income taxes | |||||||
Income tax expense (benefit) | |||||||
Net income | $ | $ | |||||
Allocated goodwill | $ | $ |
Risk Management and Shared Services | |||||||
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
($ in Thousands) | |||||||
Net interest income | $ | $ | |||||
Net intersegment interest income (expense) | ( | ) | ( | ) | |||
Segment net interest income | |||||||
Noninterest income | |||||||
Total revenue | |||||||
Credit provision | ( | ) | ( | ) | |||
Noninterest expense(a) | |||||||
Income (loss) before income taxes | ( | ) | |||||
Income tax expense (benefit) | ( | ) | |||||
Net income | $ | $ | ( | ) | |||
Allocated goodwill | $ | $ |
Consolidated Total | |||||||
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
($ in Thousands) | |||||||
Net interest income | $ | $ | |||||
Net intersegment interest income (expense) | |||||||
Segment net interest income | |||||||
Noninterest income | |||||||
Total revenue | |||||||
Credit provision | |||||||
Noninterest expense | |||||||
Income (loss) before income taxes | |||||||
Income tax expense (benefit) | |||||||
Net income | $ | $ | |||||
Allocated goodwill | $ | $ |
($ in Thousands) | Investment Securities Available For Sale | Defined Benefit Pension and Post Retirement Obligations | Accumulated Other Comprehensive Income (Loss) | ||||||||
Balance January 1, 2019 | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||
Other comprehensive income (loss) before reclassifications | |||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | |||||||||||
Investment securities losses (gains), net | ( | ) | ( | ) | |||||||
Personnel expense | ( | ) | ( | ) | |||||||
Other expense | |||||||||||
Interest income (amortization of net unrealized losses (gains) on available for sale securities transferred to held to maturity securities) | |||||||||||
Income tax (expense) benefit | ( | ) | ( | ) | ( | ) | |||||
Net other comprehensive income (loss) during period | |||||||||||
Balance March 31, 2019 | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||
Balance January 1, 2018 | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||
Other comprehensive income (loss) before reclassifications | ( | ) | ( | ) | |||||||
Amounts reclassified from accumulated other comprehensive income (loss) | |||||||||||
Personnel expense | ( | ) | ( | ) | |||||||
Other expense | |||||||||||
Adjustment for adoption of ASU 2016-01 | ( | ) | ( | ) | |||||||
Adjustment for adoption of ASU 2018-02 | ( | ) | ( | ) | ( | ) | |||||
Interest income (amortization of net unrealized losses (gains) on available for sale securities transferred to held to maturity securities) | ( | ) | ( | ) | |||||||
Income tax (expense) benefit | ( | ) | |||||||||
Net other comprehensive income (loss) during period | ( | ) | ( | ) | ( | ) | |||||
Balance March 31, 2018 | $ | ( | ) | $ | ( | ) | $ | ( | ) |
Corporate and Commercial Specialty | ||||||
Three Months Ended March 31, | ||||||
2019 | 2018 | |||||
($ in Thousands) | ||||||
Insurance commissions and fees | $ | $ | ||||
Wealth management fees | ||||||
Service charges and deposit account fees | ||||||
Card-based fees(a) | ||||||
Other revenue | ( | ) | ||||
Noninterest Income (in-scope of Topic 606) | $ | $ | ||||
Noninterest Income (out-of-scope of Topic 606) | ||||||
Total Noninterest Income | $ | $ | ||||
Community, Consumer, and Business | ||||||
Three Months Ended March 31, | ||||||
2019 | 2018 | |||||
($ in Thousands) | ||||||
Insurance commissions and fees | $ | $ | ||||
Wealth management fees | ||||||
Service charges and deposit account fees | ||||||
Card-based fees(a) | ||||||
Other revenue | ||||||
Noninterest Income (in-scope of Topic 606) | $ | $ | ||||
Noninterest Income (out-of-scope of Topic 606) | ||||||
Total Noninterest Income | $ | $ |
Risk Management and Shared Services | ||||||
Three Months Ended March 31, | ||||||
2019 | 2018 | |||||
($ in Thousands) | ||||||
Insurance commissions and fees | $ | $ | ||||
Wealth management fees | ||||||
Service charges and deposit account fees | ||||||
Card-based fees(a) | ||||||
Other revenue | ||||||
Noninterest Income (in-scope of Topic 606) | $ | $ | ||||
Noninterest Income (out-of-scope of Topic 606) | ||||||
Total Noninterest Income | $ | $ | ||||
Consolidated Total | ||||||
Three Months Ended March 31, | ||||||
2019 | 2018 | |||||
($ in Thousands) | ||||||
Insurance commissions and fees | $ | $ | ||||
Wealth management fees | ||||||
Service charges and deposit account fees | ||||||
Card-based fees(a) | ||||||
Other revenue | ||||||
Noninterest Income (in-scope of Topic 606) | $ | $ | ||||
Noninterest Income (out-of-scope of Topic 606) | ||||||
Total Noninterest Income | $ | $ |
Revenue Stream | Noninterest income in-scope of Topic 606 | |
Insurance commissions and fees | The Corporation's insurance revenue has two distinct performance obligations. The first performance obligation is the selling of the policy as an agent for the carrier. This performance obligation is satisfied upon binding of the policy. The second performance obligation is the ongoing servicing of the policy which is satisfied over the life of the policy. For employee benefits, the payment is typically received monthly. For property and casualty, payments can vary, but are typically received at, or in advance, of the policy period. | |
Service charges and deposit account fees | Service charges on deposit accounts consist of monthly service fees (i.e. business analysis fees and consumer service charges) and other deposit account related fees. The Corporation's performance obligation for monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Other deposit account related fees are largely transactional based, and therefore, the Corporation's performance obligation is satisfied, and related revenue recognized, at a point in time. Payment for service charges on deposit accounts is primarily received immediately or in the following month through a direct charge to customers’ accounts. | |
Card-based fees(a) | Card-based fees are primarily comprised of debit and credit card income, ATM fees, and merchant services income. Debit and credit card income is primarily comprised of interchange fees earned whenever the Corporation's debit and credit cards are processed through card payment networks. ATM and merchant fees are largely transactional based, and therefore, the Corporation's performance obligation is satisfied, and related revenue recognized, at a point in time. Payment is typically received immediately or in the following month. | |
Trust and asset management fees(b) | Trust and asset management income is primarily comprised of fees earned from the management and administration of trusts and other customer assets. The Corporation's performance obligation is generally satisfied over time and the resulting fees are recognized monthly, based upon the month-end market value of the assets under management and the applicable fee rate. Payment is generally received a few days after month end through a direct charge to customers’ accounts. The Corporation's performance obligation for these transactional-based services is generally satisfied, and related revenue recognized, at a point in time (i.e., as incurred). Payment is received shortly after services are rendered. | |
Brokerage commissions and fees(b) | Brokerage commissions and fees primarily consists of investment advisory, brokerage, retirement services, and annuities. The Corporation's performance obligation for investment advisory services and retirement services is generally satisfied, and the related revenue recognized, over the period in which the services are provided. The performance obligation for annuities is satisfied upon sale of the annuity, and therefore, the related revenue is primarily recognized at the time of sale. Payments for these services are typically received immediately or in advance of the service. |
March 31, 2019 | ||||
($ in Thousands) | Amount | Consolidated Balance Sheets Category | ||
Operating lease right-of-use asset | $ | Other assets | ||
Finance lease right-of-use asset | Premises and equipment | |||
Operating lease liability | Accrued expenses and other liabilities | |||
Finance lease liability | Other long-term funding |
March 31, 2019 | |||
($ in Thousands) | Weighted-average lease term (in years) | Weighted-average discount rate | |
Operating leases | |||
Equipment | % | ||
Retail and corporate offices | % | ||
Land | % | ||
Total operating leases | % |
($ in Thousands) | Amount | ||
Nine Months Ending December 31, 2019 | $ | ||
2020 | |||
2021 | |||
2022 | |||
2023 | |||
Beyond 2023 | |||
Total lease payments | |||
Less: interest | |||
Present value of lease payments | $ |
ITEM 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations |
• | Average loans of $23.1 billion increased $1.0 billion, or 5%, from the first three months of 2018. Average deposits of $24.6 billion increased $905 million, or 4%, from the first three months of 2018. For 2019, the Corporation expects to grow 3-6% in annual average loans and maintain a loan-to-deposit ratio under 100%. |
• | Net interest income of $216 million increased $6 million, or 3%, from the first three months of 2018. Net interest margin was 2.90% compared to 2.92% for the first three months of 2018. For 2019, the Corporation expects a flat to slightly lower full year net interest margin based on no additional federal funds rate action. |
• | Provision for credit losses was $6 million compared to no provision for the first three months of 2018. For 2019, the Corporation expects the provision for credit losses to adjust with changes to risk grade, other indications of credit quality, and loan volume. |
• | Noninterest income of $91 million was up $822 thousand, or 1%, from the first three months of 2018. For 2019, the Corporation expects improving year-over-year fee-based revenues and approximately $360 million to $375 million in full year noninterest income. |
• | Noninterest expense of $192 million was down $21 million, or 10%, from the first three months of 2018, driven by a reduction of $20 million in acquisition related costs. For 2019, the Corporation expects full year noninterest expense to be approximately $800 million. |
1Q19 | 4Q18 | 3Q18 | 2Q18 | 1Q18 | |||||||||||
($ in Thousands, except per share data) | |||||||||||||||
Net income | $ | 86,686 | $ | 88,985 | $ | 85,929 | $ | 89,192 | $ | 69,456 | |||||
Net income available to common equity | 82,885 | 85,278 | 83,521 | 86,863 | 67,117 | ||||||||||
Earnings per common share - basic | 0.50 | 0.52 | 0.49 | 0.51 | 0.41 | ||||||||||
Earnings per common share - diluted | 0.50 | 0.51 | 0.48 | 0.50 | 0.40 | ||||||||||
Effective tax rate | 20.53 | % | 21.83 | % | 20.64 | % | 14.19 | % | 20.43 | % |
Quarter ended | ||||||||||||||||||||||||||
March 31, 2019 | December 31, 2018 | March 31, 2018 | ||||||||||||||||||||||||
Average Balance | Interest Income / Expense | Average Yield / Rate | Average Balance | Interest Income / Expense | Average Yield / Rate | Average Balance | Interest Income / Expense | Average Yield / Rate | ||||||||||||||||||
($ in Thousands) | ||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||
Earning assets | ||||||||||||||||||||||||||
Loans(a)(b)(c) | ||||||||||||||||||||||||||
Commercial and business lending | $ | 8,376,163 | $ | 100,298 | 4.86 | % | $ | 8,019,254 | $ | 96,539 | 4.78 | % | $ | 7,313,621 | $ | 74,706 | 4.14 | % | ||||||||
Commercial real estate lending | 5,117,926 | 65,512 | 5.19 | % | 5,209,743 | 72,364 | 5.51 | % | 5,399,429 | 61,504 | 4.62 | % | ||||||||||||||
Total commercial | 13,494,089 | 165,810 | 4.98 | % | 13,228,997 | 168,903 | 5.07 | % | 12,713,050 | 136,210 | 4.34 | % | ||||||||||||||
Residential mortgage(d) | 8,366,452 | 73,981 | 3.54 | % | 8,314,421 | 73,158 | 3.52 | % | 8,066,297 | 66,955 | 3.32 | % | ||||||||||||||
Retail(d) | 1,242,973 | 19,355 | 6.26 | % | 1,261,307 | 18,982 | 6.00 | % | 1,299,181 | 17,299 | 5.35 | % | ||||||||||||||
Total loans | 23,103,514 | 259,147 | 4.53 | % | 22,804,725 | 261,043 | 4.55 | % | 22,078,529 | 220,464 | 4.03 | % | ||||||||||||||
Investment securities | ||||||||||||||||||||||||||
Taxable | 4,977,866 | 29,053 | 2.34 | % | 5,087,746 | 29,119 | 2.29 | % | 5,576,826 | 30,104 | 2.16 | % | ||||||||||||||
Tax-exempt(a) | 1,845,352 | 17,270 | 3.74 | % | 1,740,964 | 16,253 | 3.73 | % | 1,312,913 | 11,613 | 3.54 | % | ||||||||||||||
Other short-term investments | 468,449 | 4,226 | 3.65 | % | 383,286 | 3,257 | 3.38 | % | 313,864 | 2,177 | 2.80 | % | ||||||||||||||
Investments and other | 7,291,666 | 50,549 | 2.78 | % | 7,211,997 | 48,629 | 2.70 | % | 7,203,603 | 43,894 | 2.44 | % | ||||||||||||||
Total earning assets | 30,395,180 | $ | 309,695 | 4.11 | % | 30,016,722 | $ | 309,672 | 4.11 | % | 29,282,132 | $ | 264,358 | 3.64 | % | |||||||||||
Other assets, net | 3,049,123 | 3,045,836 | 2,884,248 | |||||||||||||||||||||||
Total assets | $ | 33,444,303 | $ | 33,062,558 | $ | 32,166,380 | ||||||||||||||||||||
Liabilities and Stockholders' equity | ||||||||||||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||||||||||
Interest-bearing deposits | ||||||||||||||||||||||||||
Savings | $ | 2,098,834 | $ | 1,150 | 0.22 | % | $ | 1,995,160 | $ | 696 | 0.14 | % | $ | 1,722,665 | $ | 202 | 0.05 | % | ||||||||
Interest-bearing demand | 4,739,662 | 13,920 | 1.19 | % | 4,837,223 | 14,006 | 1.15 | % | 4,503,974 | 7,818 | 0.70 | % | ||||||||||||||
Money market | 7,388,174 | 20,786 | 1.14 | % | 7,089,449 | 16,532 | 0.93 | % | 7,215,329 | 9,785 | 0.55 | % | ||||||||||||||
Network transaction deposits | 2,225,027 | 13,626 | 2.48 | % | 1,880,595 | 10,943 | 2.31 | % | 2,408,681 | 8,778 | 1.48 | % | ||||||||||||||
Time deposits | 3,121,960 | 13,291 | 1.73 | % | 3,060,896 | 11,982 | 1.55 | % | 2,715,292 | 6,830 | 1.02 | % | ||||||||||||||
Total interest-bearing deposits | 19,573,656 | 62,773 | 1.30 | % | 18,863,323 | 54,159 | 1.14 | % | 18,565,941 | 33,412 | 0.73 | % | ||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 177,361 | 627 | 1.43 | % | 134,748 | 442 | 1.30 | % | 275,578 | 522 | 0.77 | % | ||||||||||||||
Commercial paper | 41,640 | 51 | 0.50 | % | 41,528 | 36 | 0.35 | % | 73,722 | 60 | 0.33 | % | ||||||||||||||
FHLB advances | 3,639,660 | 19,554 | 2.18 | % | 3,654,905 | 19,948 | 2.17 | % | 3,736,510 | 13,123 | 1.42 | % | ||||||||||||||
Long-term funding | 795,757 | 7,396 | 3.72 | % | 795,379 | 7,396 | 3.72 | % | 497,348 | 4,544 | 3.66 | % | ||||||||||||||
Total short and long-term funding | 4,654,418 | 27,628 | 2.40 | % | 4,626,560 | 27,822 | 2.39 | % | 4,583,158 | 18,249 | 1.61 | % | ||||||||||||||
Total interest-bearing liabilities | 24,228,074 | $ | 90,401 | 1.51 | % | 23,489,883 | $ | 81,980 | 1.39 | % | 23,149,099 | $ | 51,661 | 0.90 | % | |||||||||||
Noninterest-bearing demand deposits | 4,982,553 | 5,366,711 | 5,084,957 | |||||||||||||||||||||||
Other liabilities | 418,546 | 459,204 | 395,008 | |||||||||||||||||||||||
Stockholders’ equity | 3,815,130 | 3,746,760 | 3,537,316 | |||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 33,444,303 | $ | 33,062,558 | $ | 32,166,380 | ||||||||||||||||||||
Interest rate spread | 2.60 | % | 2.72 | % | 2.74 | % | ||||||||||||||||||||
Net free funds | 0.30 | % | 0.30 | % | 0.18 | % | ||||||||||||||||||||
Fully tax-equivalent net interest income and net interest margin ("NIM") | $ | 219,294 | 2.90 | % | $ | 227,692 | 3.02 | % | $ | 212,697 | 2.92 | % | ||||||||||||||
Fully tax-equivalent adjustment | 3,747 | 3,736 | 2,826 | |||||||||||||||||||||||
Net interest income | $ | 215,547 | $ | 223,955 | $ | 209,871 |
• | Net interest income in the consolidated statements of income (which excludes the fully tax-equivalent adjustment) was $216 million for the first three months of 2019 compared to $210 million for the first three months of 2018. See sections Interest Rate Risk and Quantitative and Qualitative Disclosures about Market Risk for a discussion of interest rate risk and market risk. |
• | Fully tax-equivalent net interest income of $219 million for the first three months of 2019 was $7 million, or 3%, higher than the first three months of 2018. The net interest margin for the first three months of 2019 was 2.90%, compared to 2.92% for the first three months of 2018. |
• | Accreted income from the acquired Bank Mutual loan portfolio contributed $2 million to net interest income for the first three months of 2019 compared to $6 million for the first three months of 2018, of which approximately $2 million of the accreted income was from loan prepayments and other adjustments. |
• | Average earning assets of $30.4 billion for the first three months of 2019 were $1.1 billion, or 4%, higher than the first three months of 2018. Average loans of $23.1 billion for the first three months of 2019 increased $1.0 billion, or 5%, from the first three months of 2018, primarily due to a $781 million, or 6%, increase in commercial loans. |
• | Average interest-bearing liabilities of $24.2 billion for the first three months of 2019 were up $1.1 billion, or 5%, versus the first three months of 2018. On average, interest-bearing deposits increased $1.0 billion, or 5%, and long-term funding increased $298 million, or 60%, from the first three months of 2018 primarily due to the issuance of $300 million of senior bank notes in August 2018. |
• | The cost of interest-bearing liabilities was 1.51% for the first three months of 2019, which was 61 bp higher than the first three months of 2018. The increase was primarily due to a 57 bp increase in the cost of average interest-bearing deposits to 1.30% and a 76 bp increase in the cost of FHLB advances to 2.18%, both primarily due to increases in the Federal Reserve interest rate. |
• | The Federal Reserve left the interest rate unchanged for the first quarter of 2019 at a range of 2.25% to 2.50%, compared to a range of 1.50% to 1.75% at the end of the first quarter of 2018. |
• | The provision for credit losses (which includes the provision for loan losses and the provision for unfunded commitments) for the three months ended March 31, 2019 was $6 million, compared to no provision for the three months ended March 31, 2018. |
• | Net charge offs were $7 million, or 0.13%, of average loans on an annualized basis, for the three months ended March 31, 2019, compared to $9 million, or 0.17%, of average loans on an annualized basis, for the three months ended March 31, 2018. |
• | The ratio of the allowance for loan losses to total loans was 1.02% for March 31, 2019 and 1.13% for March 31, 2018. |
1Q19 Change vs | |||||||||||||||||||
($ in Thousands) | 1Q19 | 4Q18 | 3Q18 | 2Q18 | 1Q18 | 4Q18 | 1Q18 | ||||||||||||
Insurance commissions and fees | $ | 25,464 | $ | 21,232 | $ | 21,636 | $ | 23,996 | $ | 22,648 | 20 | % | 12 | % | |||||
Wealth management fees(a) | 20,180 | 20,364 | 21,224 | 20,333 | 20,642 | (1 | )% | (2 | )% | ||||||||||
Service charges and deposit account fees | 15,115 | 16,361 | 16,904 | 16,390 | 16,420 | (8 | )% | (8 | )% | ||||||||||
Card-based fees | 9,261 | 10,316 | 9,783 | 10,115 | 9,442 | (10 | )% | (2 | )% | ||||||||||
Other fee-based revenue | 3,983 | 5,260 | 4,307 | 4,272 | 3,980 | (24 | )% | — | % | ||||||||||
Total fee-based revenue | 74,003 | 73,533 | 73,854 | 75,106 | 73,132 | 1 | % | 1 | % | ||||||||||
Capital markets, net | 3,189 | 4,931 | 5,099 | 4,783 | 5,306 | (35 | )% | (40 | )% | ||||||||||
Mortgage banking income | 7,526 | 5,846 | 6,444 | 8,451 | 8,219 | 29 | % | (8 | )% | ||||||||||
Mortgage servicing rights expense | 2,814 | 2,575 | 2,432 | 2,193 | 1,849 | 9 | % | 52 | % | ||||||||||
Mortgage banking, net | 4,712 | 3,271 | 4,012 | 6,258 | 6,370 | 44 | % | (26 | )% | ||||||||||
Bank and corporate owned life insurance | 3,792 | 3,247 | 3,540 | 3,978 | 3,187 | 17 | % | 19 | % | ||||||||||
Other | 3,260 | 1,522 | 2,802 | 2,235 | 2,492 | 114 | % | 31 | % | ||||||||||
Subtotal | 88,956 | 86,504 | 89,307 | 92,360 | 90,487 | 3 | % | (2 | )% | ||||||||||
Asset gains(losses), net(b) | 567 | (2,456 | ) | (1,037 | ) | 2,497 | (107 | ) | N/M | N/M | |||||||||
Investment securities gains(losses), net | 1,680 | — | 30 | (2,015 | ) | — | N/M | N/M | |||||||||||
Total noninterest income | $ | 91,202 | $ | 84,046 | $ | 88,300 | $ | 92,842 | $ | 90,380 | 9 | % | 1 | % | |||||
Mortgage loans originated for sale during period | $ | 162,521 | $ | 244,700 | $ | 331,334 | $ | 318,682 | $ | 197,603 | (34 | )% | (18 | )% | |||||
Mortgage loan settlements during period | $ | 159,842 | $ | 304,723 | $ | 344,849 | $ | 294,456 | $ | 187,624 | (48 | )% | (15 | )% | |||||
Assets under management, at market value(c) | $ | 11,192 | $ | 10,291 | $ | 11,206 | $ | 10,776 | $ | 10,540 | 9 | % | 6 | % |
• | Insurance revenue was $25 million, up $3 million, or 12%, from the first three months of 2018, driven by the acquisitions of Diversified and Anderson. |
• | Service charges and deposit account fees decreased $1 million, or 8%, from the first three months of 2018, primarily driven by a decrease in service charges on business accounts. |
• | Mortgage banking, net was down $2 million, or 26%, from the first three months of 2018, primarily driven by lower mortgage banking income and higher MSR expense. |
• | Capital markets, net was down $2 million, or 40%, from the first three months of 2018, primarily driven by $1 million of unfavorable credit valuation adjustments. |
1Q19 Change vs | |||||||||||||||||||
($ in Thousands) | 1Q19 | 4Q18 | 3Q18 | 2Q18 | 1Q18 | 4Q18 | 1Q18 | ||||||||||||
Personnel | $ | 120,050 | $ | 116,535 | $ | 124,476 | $ | 123,980 | $ | 117,685 | 3 | % | 2 | % | |||||
Technology | 19,012 | 17,944 | 17,563 | 19,452 | 17,715 | 6 | % | 7 | % | ||||||||||
Occupancy | 16,472 | 14,174 | 14,519 | 15,071 | 15,357 | 16 | % | 7 | % | ||||||||||
Business development and advertising | 6,636 | 8,950 | 8,213 | 7,067 | 6,693 | (26 | )% | (1 | )% | ||||||||||
Equipment | 5,668 | 5,897 | 5,838 | 5,953 | 5,556 | (4 | )% | 2 | % | ||||||||||
Legal and professional | 3,951 | 5,888 | 5,476 | 6,284 | 5,413 | (33 | )% | (27 | )% | ||||||||||
Card Issuance costs | 977 | 1,442 | 2,247 | 2,412 | 2,332 | (32 | )% | (58 | )% | ||||||||||
Loan costs | 1,364 | 790 | 1,430 | 761 | 972 | 73 | % | 40 | % | ||||||||||
Foreclosure / OREO expense, net | 567 | 909 | 950 | 1,021 | 723 | (38 | )% | (22 | )% | ||||||||||
FDIC assessment | 3,750 | 5,750 | 7,750 | 8,250 | 8,250 | (35 | )% | (55 | )% | ||||||||||
Other intangible amortization | 2,226 | 2,233 | 2,233 | 2,168 | 1,525 | — | % | 46 | % | ||||||||||
Acquisition related costs(a) | 632 | (981 | ) | 2,271 | 7,107 | 20,605 | N/M | (97 | )% | ||||||||||
Other | 10,366 | 13,632 | 11,445 | 11,732 | 10,140 | (24 | )% | 2 | % | ||||||||||
Total noninterest expense | $ | 191,671 | $ | 193,163 | $ | 204,413 | $ | 211,258 | $ | 212,965 | (1 | )% | (10 | )% | |||||
Personnel expense to total noninterest expense | 63 | % | 60 | % | 61 | % | 59 | % | 55 | % | |||||||||
Average full-time equivalent employees(b) | 4,660 | 4,659 | 4,707 | 4,792 | 4,637 |
• | Personnel expense (which includes salary-related expenses and fringe benefit expenses) of $120 million increased $2 million from the first three months of 2018. |
• | FDIC assessment decreased $5 million from the first three months of 2018 driven by the FDIC surcharge assessment ending in late 2018. |
• | Acquisition related costs decreased $20 million from the first three months of 2018. |
• | At March 31, 2019, total assets were $33.7 billion, up $53 million from December 31, 2018 and up $334 million, or 1%, from March 31, 2018. |
• | Loans of $23.1 billion at March 31, 2019 were up $208 million, or 1%, from December 31, 2018 and were up $338 million, or 1%, from March 31, 2018. See section Loans for additional information on loans. |
• | At March 31, 2019, total deposits of $25.5 billion were up $636 million, or 3%, from December 31, 2018 and were up $1.7 billion, or 7%, from March 31, 2018. See section Deposits and Customer Funding for additional information on deposits. |
• | Long-term funding, excluding FHLB advances, was $796 million at March 31, 2019, relatively unchanged from December 31, 2018 and increased 60% from March 31, 2018 primarily driven by a $300 million senior bank note issuance during the third quarter of 2018. |
• | At March 31, 2019, preferred equity was $257 million, unchanged from December 31, 2018 and up $97 million from March 31, 2018 as a result of the Corporation's $100 million Non-Cumulative Perpetual Preferred Stock, Series E issuance during the third quarter of 2018. |
March 31, 2019 | December 31, 2018 | September 30, 2018 | June 30, 2018 | March 31, 2018 | ||||||||||||||||||||||||||||||
Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | |||||||||||||||||||||||||
($ in Thousands) | ||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 7,587,597 | 33 | % | $ | 7,398,044 | 32 | % | $ | 7,159,941 | 31 | % | $ | 7,109,796 | 31 | % | $ | 6,756,983 | 30 | % | ||||||||||||||
Commercial real estate — owner occupied | 932,393 | 4 | % | 920,443 | 4 | % | 867,682 | 4 | % | 888,330 | 4 | % | 900,913 | 4 | % | |||||||||||||||||||
Commercial and business lending | 8,519,990 | 37 | % | 8,318,487 | 36 | % | 8,027,622 | 35 | % | 7,998,126 | 35 | % | 7,657,896 | 34 | % | |||||||||||||||||||
Commercial real estate — investor | 3,809,253 | 16 | % | 3,751,554 | 16 | % | 3,924,499 | 17 | % | 3,996,415 | 17 | % | 4,077,671 | 18 | % | |||||||||||||||||||
Real estate construction | 1,273,782 | 6 | % | 1,335,031 | 6 | % | 1,416,209 | 6 | % | 1,487,159 | 6 | % | 1,579,778 | 7 | % | |||||||||||||||||||
Commercial real estate lending | 5,083,035 | 22 | % | 5,086,585 | 22 | % | 5,340,708 | 23 | % | 5,483,574 | 24 | % | 5,657,449 | 25 | % | |||||||||||||||||||
Total commercial | 13,603,025 | 59 | % | 13,405,072 | 58 | % | 13,368,330 | 58 | % | 13,481,700 | 59 | % | 13,315,345 | 58 | % | |||||||||||||||||||
Residential mortgage | 8,323,846 | 36 | % | 8,277,712 | 36 | % | 8,227,649 | 36 | % | 8,207,253 | 36 | % | 8,197,223 | 36 | % | |||||||||||||||||||
Home equity | 868,886 | 4 | % | 894,473 | 4 | % | 901,275 | 4 | % | 911,363 | 4 | % | 923,470 | 4 | % | |||||||||||||||||||
Other consumer | 352,602 | 2 | % | 363,171 | 2 | % | 369,858 | 2 | % | 376,470 | 2 | % | 374,453 | 2 | % | |||||||||||||||||||
Total consumer | 9,545,333 | 41 | % | 9,535,357 | 42 | % | 9,498,782 | 42 | % | 9,495,086 | 41 | % | 9,495,146 | 42 | % | |||||||||||||||||||
Total loans | $ | 23,148,359 | 100 | % | $ | 22,940,429 | 100 | % | $ | 22,867,112 | 100 | % | $ | 22,976,786 | 100 | % | $ | 22,810,491 | 100 | % |
March 31, 2019 | Within 1 Year(a) | 1-5 Years | After 5 Years | Total | % of Total | |||||||||||||
($ in Thousands) | ||||||||||||||||||
Commercial and industrial | $ | 6,970,851 | $ | 500,539 | $ | 116,207 | $ | 7,587,597 | 33 | % | ||||||||
Commercial real estate — owner occupied | 503,650 | 277,661 | 151,082 | 932,393 | 4 | % | ||||||||||||
Commercial real estate — investor | 3,222,155 | 494,679 | 92,419 | 3,809,253 | 16 | % | ||||||||||||
Real estate construction | 1,210,988 | 59,928 | 2,866 | 1,273,782 | 6 | % | ||||||||||||
Residential Mortgage - Adjustable(b) | 628,426 | 2,873,068 | 1,688,217 | 5,189,710 | 22 | % | ||||||||||||
Residential Mortgage - Fixed | 69,108 | 62,041 | 3,002,987 | 3,134,136 | 14 | % | ||||||||||||
Home Equity | 43,549 | 69,504 | 755,832 | 868,886 | 4 | % | ||||||||||||
Other Consumer | 155,427 | 46,418 | 150,757 | 352,602 | 2 | % | ||||||||||||
Total Loans | $ | 12,804,154 | $ | 4,383,838 | $ | 5,960,366 | $ | 23,148,359 | 100 | % | ||||||||
Fixed rate | $ | 5,552,484 | $ | 1,076,892 | $ | 3,467,282 | $ | 10,096,658 | 44 | % | ||||||||
Floating or adjustable rate | 7,251,670 | 3,306,947 | 2,493,084 | 13,051,700 | 56 | % | ||||||||||||
Total | $ | 12,804,154 | $ | 4,383,838 | $ | 5,960,366 | $ | 23,148,359 | 100 | % |
March 31, 2019 | % of Total Loans | % of Total Commercial and Business Lending | ||
Manufacturing and Wholesale Trade | 9 | % | 23 | % |
Power and Utilities | 6 | % | 16 | % |
March 31, 2019 | % of Total Loans | % of Total Commercial Real Estate - Investor | ||
Multi-Family | 5 | % | 33 | % |
March 31, 2019 | December 31, 2018 | September 30, 2018 | June 30, 2018 | March 31, 2018 | |||||||||||||||
($ in Thousands) | |||||||||||||||||||
Nonperforming assets | |||||||||||||||||||
Commercial and industrial | $ | 73,379 | $ | 41,021 | $ | 50,146 | $ | 81,776 | $ | 102,667 | |||||||||
Commercial real estate — owner occupied | 890 | 3,957 | 4,779 | 18,649 | 20,636 | ||||||||||||||
Commercial and business lending | 74,269 | 44,978 | 54,925 | 100,425 | 123,303 | ||||||||||||||
Commercial real estate — investor | 776 | 1,952 | 19,725 | 26,503 | 15,574 | ||||||||||||||
Real estate construction | 739 | 979 | 1,154 | 1,544 | 1,219 | ||||||||||||||
Commercial real estate lending | 1,516 | 2,931 | 20,879 | 28,047 | 16,793 | ||||||||||||||
Total commercial | 75,784 | 47,909 | 75,804 | 128,472 | 140,096 | ||||||||||||||
Residential mortgage | 67,323 | 67,574 | 65,896 | 62,896 | 55,100 | ||||||||||||||
Home equity | 12,300 | 12,339 | 12,324 | 12,958 | 13,218 | ||||||||||||||
Other consumer | 149 | 79 | 68 | 134 | 139 | ||||||||||||||
Total consumer | 79,772 | 79,992 | 78,288 | 75,988 | 68,456 | ||||||||||||||
Total nonaccrual loans | 155,556 | 127,901 | 154,092 | 204,460 | 208,553 | ||||||||||||||
Commercial real estate owned | 3,434 | 4,047 | 4,680 | 4,848 | 7,511 | ||||||||||||||
Residential real estate owned | 3,740 | 2,963 | 3,630 | 3,715 | 5,806 | ||||||||||||||
Bank properties real estate owned | 5,112 | 4,974 | 17,343 | 18,645 | 3,601 | ||||||||||||||
Other real estate owned (“OREO”) | 12,286 | 11,984 | 25,653 | 27,207 | 16,919 | ||||||||||||||
Other nonperforming assets | — | — | 6,379 | 7,059 | 7,117 | ||||||||||||||
Total nonperforming assets (“NPAs”) | $ | 167,843 | $ | 139,885 | $ | 186,124 | $ | 238,726 | $ | 232,589 | |||||||||
Accruing loans past due 90 days or more | |||||||||||||||||||
Commercial | $ | 287 | $ | 311 | $ | 319 | $ | 222 | $ | 505 | |||||||||
Consumer | 1,931 | 1,853 | 1,856 | 1,617 | 2,888 | ||||||||||||||
Total accruing loans past due 90 days or more | $ | 2,218 | $ | 2,165 | $ | 2,175 | $ | 1,839 | $ | 3,393 | |||||||||
Restructured loans (accruing) | |||||||||||||||||||
Commercial | $ | 19,480 | $ | 28,668 | $ | 43,199 | $ | 36,852 | $ | 47,460 | |||||||||
Consumer | 27,068 | 24,595 | 25,955 | 26,871 | 29,041 | ||||||||||||||
Total restructured loans (accruing) | $ | 46,548 | $ | 53,263 | $ | 69,154 | $ | 63,723 | $ | 76,501 | |||||||||
Nonaccrual restructured loans (included in nonaccrual loans) | $ | 24,172 | $ | 26,292 | $ | 33,757 | $ | 38,005 | $ | 23,827 | |||||||||
Ratios | |||||||||||||||||||
Nonaccrual loans to total loans | 0.67 | % | 0.56 | % | 0.67 | % | 0.89 | % | 0.91 | % | |||||||||
NPAs to total loans plus OREO | 0.72 | % | 0.61 | % | 0.81 | % | 1.04 | % | 1.02 | % | |||||||||
NPAs to total assets | 0.50 | % | 0.42 | % | 0.56 | % | 0.71 | % | 0.70 | % | |||||||||
Allowance for loan losses to nonaccrual loans | 151.12 | % | 186.10 | % | 153.32 | % | 123.55 | % | 123.26 | % |
March 31, 2019 | December 31, 2018 | September 30, 2018 | June 30, 2018 | March 31, 2018 | |||||||||||||||
($ in Thousands) | |||||||||||||||||||
Accruing loans 30-89 days past due | |||||||||||||||||||
Commercial and industrial | $ | 3,295 | $ | 525 | $ | 5,732 | $ | 588 | $ | 880 | |||||||||
Commercial real estate — owner occupied | 6,066 | 2,699 | 6,126 | 193 | 511 | ||||||||||||||
Commercial and business lending | 9,361 | 3,224 | 11,858 | 781 | 1,391 | ||||||||||||||
Commercial real estate — investor | 1,090 | 3,767 | 373 | 828 | 240 | ||||||||||||||
Real estate construction | 6,773 | 330 | 517 | 19,765 | 490 | ||||||||||||||
Commercial real estate lending | 7,863 | 4,097 | 890 | 20,593 | 730 | ||||||||||||||
Total commercial | 17,224 | 7,321 | 12,748 | 21,374 | 2,121 | ||||||||||||||
Residential mortgage | 13,274 | 9,706 | 8,899 | 9,341 | 15,133 | ||||||||||||||
Home equity | 6,363 | 6,049 | 8,080 | 7,270 | 5,868 | ||||||||||||||
Other consumer | 2,364 | 2,269 | 1,979 | 1,735 | 1,811 | ||||||||||||||
Total consumer | 22,001 | 18,024 | 18,958 | 18,346 | 22,812 | ||||||||||||||
Total accruing loans 30-89 days past due | $ | 39,225 | $ | 25,345 | $ | 31,706 | $ | 39,720 | $ | 24,934 | |||||||||
Potential problem loans | |||||||||||||||||||
Commercial and industrial | $ | 111,772 | $ | 116,578 | $ | 144,468 | $ | 172,177 | $ | 196,766 | |||||||||
Commercial real estate — owner occupied | 48,929 | 55,964 | 32,526 | 38,879 | 34,410 | ||||||||||||||
Commercial and business lending | 160,701 | 172,542 | 176,994 | 211,056 | 231,176 | ||||||||||||||
Commercial real estate — investor | 70,613 | 67,481 | 49,842 | 24,790 | 46,970 | ||||||||||||||
Real estate construction | 4,600 | 3,834 | 3,392 | 3,168 | 1,695 | ||||||||||||||
Commercial real estate lending | 75,213 | 71,315 | 53,234 | 27,958 | 48,665 | ||||||||||||||
Total commercial | 235,914 | 243,856 | 230,228 | 239,014 | 279,841 | ||||||||||||||
Residential mortgage | 5,351 | 5,975 | 6,073 | 2,355 | 2,155 | ||||||||||||||
Home equity | 91 | 103 | 148 | 142 | 188 | ||||||||||||||
Other consumer | — | — | — | 6 | — | ||||||||||||||
Total consumer | 5,443 | 6,078 | 6,221 | 2,503 | 2,343 | ||||||||||||||
Total potential problem loans | $ | 241,357 | $ | 249,935 | $ | 236,449 | $ | 241,517 | $ | 282,184 |
March 31, 2019 | December 31, 2018 | September 30, 2018 | June 30, 2018 | March 31, 2018 | |||||||||||
($ in Thousands) | |||||||||||||||
Allowance for Loan Losses | |||||||||||||||
Balance at beginning of period | $ | 238,023 | $ | 236,250 | $ | 252,601 | $ | 257,058 | $ | 265,880 | |||||
Provision for loan losses | 4,500 | 2,000 | (4,000 | ) | 4,000 | 500 | |||||||||
Charge offs | (15,486 | ) | (6,151 | ) | (17,304 | ) | (14,926 | ) | (12,155 | ) | |||||
Recoveries | 8,044 | 5,923 | 4,953 | 6,470 | 2,832 | ||||||||||
Net charge offs | (7,442 | ) | (228 | ) | (12,351 | ) | (8,456 | ) | (9,323 | ) | |||||
Balance at end of period | $ | 235,081 | $ | 238,023 | $ | 236,250 | $ | 252,601 | $ | 257,058 | |||||
Allowance for Unfunded Commitments | |||||||||||||||
Balance at beginning of period | $ | 24,336 | $ | 25,336 | $ | 26,336 | $ | 26,336 | $ | 24,400 | |||||
Provision for unfunded commitments | 1,500 | (1,000 | ) | (1,000 | ) | — | (500 | ) | |||||||
Amount recorded at acquisition | — | — | — | — | 2,436 | ||||||||||
Balance at end of period | $ | 25,836 | $ | 24,336 | $ | 25,336 | $ | 26,336 | $ | 26,336 | |||||
Allowance for credit losses(a) | $ | 260,917 | $ | 262,359 | $ | 261,586 | $ | 278,937 | $ | 283,394 | |||||
Provision for credit losses(b) | 6,000 | 1,000 | (5,000 | ) | 4,000 | — | |||||||||
Net loan (charge offs) recoveries | |||||||||||||||
Commercial and industrial | $ | (7,428 | ) | $ | 2,974 | $ | (6,893 | ) | $ | (6,606 | ) | $ | (6,599 | ) | |
Commercial real estate — owner occupied | 1,193 | 282 | (252 | ) | 270 | (1,025 | ) | ||||||||
Commercial and business lending | (6,235 | ) | 3,256 | (7,145 | ) | (6,336 | ) | (7,624 | ) | ||||||
Commercial real estate — investor | 31 | (2,107 | ) | (3,958 | ) | (1,189 | ) | 8 | |||||||
Real estate construction | — | 106 | (195 | ) | 48 | 189 | |||||||||
Commercial real estate lending | 31 | (2,001 | ) | (4,153 | ) | (1,141 | ) | 197 | |||||||
Total commercial | (6,203 | ) | 1,255 | (11,298 | ) | (7,477 | ) | (7,427 | ) | ||||||
Residential mortgage | (457 | ) | (94 | ) | 5 | (135 | ) | (131 | ) | ||||||
Home equity | 309 | (270 | ) | 200 | 140 | (677 | ) | ||||||||
Other consumer | (1,090 | ) | (1,118 | ) | (1,258 | ) | (984 | ) | (1,088 | ) | |||||
Total consumer | (1,239 | ) | (1,482 | ) | (1,053 | ) | (979 | ) | (1,896 | ) | |||||
Total net charge offs | $ | (7,442 | ) | $ | (228 | ) | $ | (12,351 | ) | $ | (8,456 | ) | $ | (9,323 | ) |
Ratios | |||||||||||||||
Allowance for loan losses to total loans | 1.02 | % | 1.04 | % | 1.03 | % | 1.10 | % | 1.13 | % | |||||
Allowance for loan losses to net charge offs (annualized) | 7.8x | 263.1x | 4.8x | 7.4x | 6.8x |
(In basis points) | March 31, 2019 | December 31, 2018 | September 30, 2018 | June 30, 2018 | March 31, 2018 | |||||
Net loan (charge offs) recoveries | ||||||||||
Commercial and industrial | (40 | ) | 16 | (39 | ) | (39 | ) | (41 | ) | |
Commercial real estate — owner occupied | 53 | 13 | (11 | ) | 12 | (48 | ) | |||
Commercial and business lending | (30 | ) | 16 | (36 | ) | (33 | ) | (42 | ) | |
Commercial real estate — investor | — | (22 | ) | (40 | ) | (12 | ) | — | ||
Real estate construction | — | 3 | (5 | ) | 1 | 5 | ||||
Commercial real estate lending | — | (15 | ) | (30 | ) | (8 | ) | 1 | ||
Total commercial | (19 | ) | 4 | (34 | ) | (22 | ) | (24 | ) | |
Residential mortgage | (2 | ) | — | — | (1 | ) | (1 | ) | ||
Home equity | 14 | (12 | ) | 9 | 6 | (30 | ) | |||
Other consumer | (123 | ) | (121 | ) | (133 | ) | (105 | ) | (115 | ) |
Total consumer | (5 | ) | (6 | ) | (4 | ) | (4 | ) | (8 | ) |
Total net charge offs | (13 | ) | — | (21 | ) | (15 | ) | (17 | ) |
• | Total loans increased $208 million, or 1%, from December 31, 2018, primarily driven by a $202 million, or 2%, increase in commercial and business lending. Compared to March 31, 2018, total loans increased $338 million, or 1%, primarily driven by an $862 million, or 11%, increase in commercial and business lending which was partially offset by a $574 million, or 10%, decrease in commercial real estate lending. See section Loans for additional information on the changes in the loan portfolio and see section Credit Risk for discussion about credit risk management for each loan type. |
• | Potential problem loans decreased $9 million, or 3%, from December 31, 2018 primarily due to the downward migration of commercial related credits and decreased $41 million, or 14%, from March 31, 2018, primarily due to the improvement of commercial and industrial related credits. See Table 9 for additional information on the changes in potential problem loans. |
• | Total nonaccrual loans increased $28 million, or 22%, from December 31, 2018, primarily due to migration in commercial and industrial credits. Compared to March 31, 2018, total nonaccrual loans decreased $53 million, or 25%, primarily due to improvements in commercial credits. See also Note 7 Loans of the notes to consolidated financial statements and section Nonperforming Assets for additional disclosures on the changes in asset quality. |
• | Year-to-date net charge offs decreased $2 million, or 20%, from the comparable period last year. See Table 10 and Table 11 for additional information regarding the activity in the allowance for loan losses. |
($ in Thousands) | March 31, 2019 | December 31, 2018 | September 30, 2018 | June 30, 2018 | March 31, 2018 | |||||||||||||||||||||||||||||
Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | |||||||||||||||||||||||||
Noninterest-bearing demand | $ | 5,334,154 | 21 | % | $ | 5,698,530 | 23 | % | $ | 5,421,270 | 22 | % | $ | 5,341,361 | 22 | % | $ | 5,458,473 | 23 | % | ||||||||||||||
Savings | 2,215,857 | 9 | % | 2,012,841 | 8 | % | 1,937,006 | 8 | % | 1,887,777 | 8 | % | 1,883,638 | 8 | % | |||||||||||||||||||
Interest-bearing demand | 5,226,362 | 20 | % | 5,336,952 | 21 | % | 5,096,998 | 21 | % | 4,650,407 | 20 | % | 4,719,566 | 20 | % | |||||||||||||||||||
Money market | 9,005,018 | 35 | % | 9,033,669 | 36 | % | 9,087,587 | 37 | % | 9,208,993 | 39 | % | 9,086,553 | 38 | % | |||||||||||||||||||
Brokered CDs | 387,459 | 2 | % | 192,234 | 1 | % | 235,711 | 1 | % | 228,029 | 1 | % | 44,503 | — | % | |||||||||||||||||||
Other time | 3,364,206 | 13 | % | 2,623,167 | 11 | % | 3,053,041 | 12 | % | 2,499,747 | 10 | % | 2,632,869 | 11 | % | |||||||||||||||||||
Total deposits | $ | 25,533,057 | 100 | % | $ | 24,897,393 | 100 | % | $ | 24,831,612 | 100 | % | $ | 23,816,314 | 100 | % | $ | 23,825,602 | 100 | % | ||||||||||||||
Customer funding(a) | 146,027 | 137,364 | 184,269 | 235,804 | 297,289 | |||||||||||||||||||||||||||||
Total deposits and customer funding | $ | 25,679,083 | $ | 25,034,757 | $ | 25,015,882 | $ | 24,052,118 | $ | 24,122,891 | ||||||||||||||||||||||||
Network transaction deposits(b) | $ | 2,204,204 | $ | 2,276,296 | $ | 1,852,863 | $ | 2,094,670 | $ | 2,244,739 | ||||||||||||||||||||||||
Net deposits and customer funding (total deposits and customer funding, excluding Brokered CDs and network transaction deposits) | $ | 23,087,421 | $ | 22,566,227 | $ | 22,927,308 | $ | 21,729,419 | $ | 21,833,649 | ||||||||||||||||||||||||
Time deposits of more than $250,000 | $ | 1,634,965 | $ | 924,332 | $ | 1,350,256 | $ | 804,210 | $ | 906,727 |
• | Deposits are the Corporation’s largest source of funds. |
• | Total deposits increased $636 million, or 3%, from December 31, 2018 and increased $1.7 billion, or 7%, from March 31, 2018. |
• | Non-maturity deposit accounts comprised of savings, money market, and demand (both interest and noninterest-bearing) accounts comprised 85% of the Corporation's total deposits at March 31, 2019. |
• | Included in the above amounts were $2.2 billion of network deposits, primarily sourced from other financial institutions and intermediaries. These represented 9% of the Corporation's total deposits at March 31, 2019. |
• | Other time deposits increased $741 million, or 28%, from December 31, 2018 and increased $731 million, or 28%, from March 31, 2018, primarily due to an increase in CDs issued to public entities. |
• | Investment securities are an important tool to the Corporation’s liquidity objective, and can be pledged or sold to enhance liquidity, if necessary. See Note 6 Investment Securities of the notes to consolidated financial statements for additional information on the Corporation's investment securities portfolio, including investment securities pledged. |
• | The Bank pledges eligible loans to both the Federal Reserve Bank and the FHLB as collateral to establish lines of credit and borrow from these entities. Based on the amount of collateral pledged, the FHLB established a collateral value from which the Bank may draw advances against the collateral. The collateral is also used to enable the FHLB to issue letters of credit in favor of public fund depositors of the Bank. As of March 31, 2019, the Bank had $3.4 billion available for future advances. The Federal Reserve Bank also establishes a collateral value of assets to support borrowings from the discount window. As of March 31, 2019, the Bank had $2.8 billion available for discount window borrowings. |
• | The Parent Company has a $200 million commercial paper program, of which, $32 million was outstanding as of March 31, 2019. |
• | Dividends and service fees from subsidiaries, as well as the proceeds from issuance of capital, are funding sources for the Parent Company. |
• | The Parent Company has filed a shelf registration statement with the SEC under which the Parent Company may, from time to time, offer shares of the Corporation’s common stock in connection with acquisitions of businesses, assets, or securities of other companies. |
• | The Parent Company also has filed a universal shelf registration statement with the SEC, under which the Parent Company may offer the following securities, either separately or in units: debt securities, preferred stock, depositary shares, common stock, and warrants. |
• | The Bank may also issue institutional certificates of deposit, network transaction deposits, and brokered certificates of deposit. |
• | Associated Bank has implemented a global bank note program pursuant to which it may from time to time offer up to $2.0 billion aggregate principal amount of its unsecured senior and subordinated notes. |
Moody’s | S&P | ||
Bank short-term deposits | P-1 | - | |
Bank long-term deposits/issuer | A1 | BBB+ | |
Corporation commercial paper | P-2 | - | |
Corporation long-term senior debt/issuer | Baa1 | BBB | |
Outlook | Stable | Stable |
Dynamic Forecast March 31, 2019 | Static Forecast March 31, 2019 | Dynamic Forecast December 31, 2018 | Static Forecast December 31, 2018 | ||||||||
Instantaneous Rate Change | |||||||||||
100 bp increase in interest rates | 4.8 | % | 4.1 | % | 5.0 | % | 4.1 | % | |||
200 bp increase in interest rates | 9.5 | % | 8.0 | % | 9.9 | % | 8.1 | % |
March 31, 2019 | December 31, 2018 | ||||
Instantaneous Rate Change | |||||
100 bp increase in interest rates | (2.3 | )% | (2.0 | )% | |
200 bp increase in interest rates | (5.4 | )% | (4.5 | )% |
March 31, 2019 | One Year or Less | One to Three Years | Three to Five Years | Over Five Years | Total | ||||||||||||||
($ in Thousands) | |||||||||||||||||||
Time deposits | $ | 2,706,368 | $ | 923,141 | $ | 117,280 | $ | 4,876 | $ | 3,751,665 | |||||||||
Short-term funding | 159,117 | — | — | — | 159,117 | ||||||||||||||
FHLB advances | 32,703 | 104,099 | 454,330 | 2,353,638 | 2,944,769 | ||||||||||||||
Long-term funding | 249,775 | 297,881 | — | 248,351 | 796,007 | ||||||||||||||
Operating leases | 10,235 | 19,607 | 12,267 | 22,622 | 64,732 | ||||||||||||||
Commitments to extend credit | 4,166,952 | 2,600,601 | 2,018,675 | 169,848 | 8,956,076 | ||||||||||||||
Total | $ | 7,325,150 | $ | 3,945,329 | $ | 2,602,552 | $ | 2,799,335 | $ | 16,672,366 |
March 31, 2019 | December 31, 2018 | September 30, 2018 | June 30, 2018 | March 31, 2018 | |||||||||||||||
($ in Thousands) | |||||||||||||||||||
Risk-based Capital(a) | |||||||||||||||||||
CET1 | $ | 2,484,941 | $ | 2,449,721 | $ | 2,475,043 | $ | 2,528,002 | $ | 2,473,677 | |||||||||
Tier 1 capital | 2,741,159 | 2,705,939 | 2,731,194 | 2,686,658 | 2,632,912 | ||||||||||||||
Total capital | 3,250,428 | 3,216,575 | 3,240,983 | 3,213,726 | 3,164,362 | ||||||||||||||
Total risk-weighted assets | 24,140,413 | 23,875,278 | 23,907,156 | 24,059,029 | 23,535,483 | ||||||||||||||
CET1 capital ratio | 10.29 | % | 10.26 | % | 10.35 | % | 10.51 | % | 10.51 | % | |||||||||
Tier 1 capital ratio | 11.36 | % | 11.33 | % | 11.42 | % | 11.17 | % | 11.19 | % | |||||||||
Total capital ratio | 13.46 | % | 13.47 | % | 13.56 | % | 13.36 | % | 13.45 | % | |||||||||
Tier 1 leverage ratio | 8.49 | % | 8.48 | % | 8.43 | % | 8.32 | % | 8.48 | % | |||||||||
Selected Equity and Performance Ratios | |||||||||||||||||||
Total stockholders’ equity / assets | 11.38 | % | 11.24 | % | 11.34 | % | 11.20 | % | 11.13 | % | |||||||||
Dividend payout ratio(b) | 34.00 | % | 32.69 | % | 30.61 | % | 29.41 | % | 36.59 | % |
Quarter Ended | |||||||||||||||
March 31, 2019 | December 31, 2018 | September 30, 2018 | June 30, 2018 | March 31, 2018 | |||||||||||
($ in Thousands) | |||||||||||||||
Selected Equity and Performance Ratios(a)(b) | |||||||||||||||
Tangible common equity / tangible assets | 7.20 | % | 7.03 | % | 7.11 | % | 7.29 | % | 7.22 | % | |||||
Return on average equity | 9.21 | % | 9.42 | % | 9.06 | % | 9.61 | % | 7.96 | % | |||||
Return on average tangible common equity | 14.52 | % | 15.08 | % | 14.14 | % | 14.98 | % | 11.99 | % | |||||
Return on average Common equity Tier 1 | 13.58 | % | 13.94 | % | 13.18 | % | 14.00 | % | 11.39 | % | |||||
Return on average assets | 1.05 | % | 1.07 | % | 1.02 | % | 1.07 | % | 0.88 | % | |||||
Average stockholders' equity / average assets | 11.41 | % | 11.33 | % | 11.22 | % | 11.13 | % | 11.00 | % | |||||
Tangible Common Equity and Common Equity Tier 1 Reconciliation(a)(b) | |||||||||||||||
Common equity | $ | 3,579,153 | $ | 3,524,171 | $ | 3,540,322 | $ | 3,610,843 | $ | 3,552,846 | |||||
Goodwill and other intangible assets, net | (1,242,554 | ) | (1,244,859 | ) | (1,246,991 | ) | (1,247,011 | ) | (1,232,870 | ) | |||||
Tangible common equity | $ | 2,336,600 | $ | 2,279,312 | $ | 2,293,331 | $ | 2,363,832 | $ | 2,319,977 | |||||
Tangible Assets Reconciliation(a) | |||||||||||||||
Total assets | $ | 33,700,866 | $ | 33,647,859 | $ | 33,489,002 | $ | 33,652,647 | $ | 33,366,505 | |||||
Goodwill and other intangible assets, net | (1,242,554 | ) | (1,244,859 | ) | (1,246,991 | ) | (1,247,011 | ) | (1,232,870 | ) | |||||
Tangible assets | $ | 32,458,312 | $ | 32,402,999 | $ | 32,242,010 | $ | 32,405,635 | $ | 32,133,636 | |||||
Average Tangible Common Equity and Average Common Equity Tier 1 Reconciliation(a)(b) | |||||||||||||||
Common equity | $ | 3,558,414 | $ | 3,490,043 | $ | 3,589,387 | $ | 3,561,319 | $ | 3,377,388 | |||||
Goodwill and other intangible assets, net | (1,244,007 | ) | (1,246,102 | ) | (1,246,089 | ) | (1,235,623 | ) | (1,107,503 | ) | |||||
Tangible common equity | 2,314,406 | 2,243,941 | 2,343,298 | 2,325,696 | 2,269,885 | ||||||||||
Less: Accumulated other comprehensive income / loss | 115,767 | 137,190 | 125,225 | 117,497 | 89,105 | ||||||||||
Less: Deferred tax assets/deferred tax liabilities, net | 45,132 | 45,790 | 44,749 | 45,308 | 30,943 | ||||||||||
Average common equity Tier 1 | $ | 2,475,305 | $ | 2,426,921 | $ | 2,513,272 | $ | 2,488,501 | $ | 2,389,933 | |||||
Efficiency Ratio Reconciliation(c) | |||||||||||||||
Federal Reserve efficiency ratio | 63.32 | % | 62.39 | % | 66.12 | % | 65.77 | % | 70.76 | % | |||||
Fully tax-equivalent adjustment | (0.77 | )% | (0.75 | )% | (0.75 | )% | (0.65 | )% | (0.66 | )% | |||||
Other intangible amortization | (0.73 | )% | (0.72 | )% | (0.73 | )% | (0.68 | )% | (0.51 | )% | |||||
Fully tax-equivalent efficiency ratio | 61.83 | % | 60.93 | % | 64.66 | % | 64.45 | % | 69.60 | % |
Three Months Ended March 31, | |||||||||
($ in Thousands) | 2019 | 2018 | Change | ||||||
Corporate and Commercial Specialty | |||||||||
Total revenue | $ | 104,733 | $ | 108,641 | (4 | )% | |||
Credit provision | 13,485 | 10,598 | 27 | % | |||||
Noninterest expense | 38,788 | 39,250 | (1 | )% | |||||
Income tax expense (benefit) | 10,003 | 11,426 | (12 | )% | |||||
Average earning assets | 12,270,017 | 11,389,211 | 8 | % | |||||
Average loans | 12,260,613 | 11,378,390 | 8 | % | |||||
Average deposits | 8,215,954 | 8,057,246 | 2 | % | |||||
Average allocated capital (Average CET1)(a) | 1,225,325 | 1,171,038 | 5 | % | |||||
Return on average allocated capital (ROCET1)(a) | 14.05 | % | 16.40 | % | (235) bp | ||||
Community, Consumer, and Business | |||||||||
Total revenue | $ | 185,737 | $ | 177,579 | 5 | % | |||
Credit provision | 5,033 | 4,966 | 1 | % | |||||
Noninterest expense | 130,863 | 127,144 | 3 | % | |||||
Income tax expense (benefit) | 10,443 | 9,549 | 9 | % | |||||
Average earning assets | 10,333,020 | 10,137,899 | 2 | % | |||||
Average loans | 10,330,071 | 10,133,202 | 2 | % | |||||
Average deposits | 13,736,939 | 13,096,782 | 5 | % | |||||
Average allocated capital (Average CET1)(a) | 648,153 | 632,723 | 2 | % | |||||
Return on average allocated capital (ROCET1)(a) | 24.65 | % | 23.02 | % | 163 bp | ||||
Risk Management and Shared Services | |||||||||
Total revenue | $ | 16,280 | $ | 14,031 | 16 | % | |||
Credit provision | (12,518 | ) | (15,563 | ) | (20 | )% | |||
Noninterest expense | 21,893 | 46,571 | (53 | )% | |||||
Income tax expense (benefit) | 1,947 | (3,146 | ) | N/M | |||||
Average earning assets | 7,792,143 | 7,755,022 | — | % | |||||
Average loans | 512,830 | 566,936 | (10 | )% | |||||
Average deposits | 2,603,316 | 2,496,870 | 4 | % | |||||
Average allocated capital (Average CET1)(a) | 601,827 | 586,172 | 3 | % | |||||
Return on average allocated capital (ROCET1)(a) | 0.78 | % | (11.19 | )% | N/M | ||||
Consolidated Total | |||||||||
Total revenue | $ | 306,749 | $ | 300,251 | 2 | % | |||
Return on average allocated capital (ROCET1)(a) | 13.58 | % | 11.39 | % | 219 bp |
• | Revenue decreased $4 million, or 4%, from the first three months of 2018 primarily due to decreased segment net interest income of $3 million. |
• | Credit provision increased $3 million, or 27%, from the first three months of 2018. |
• | Average loans increased $882 million, or 8%, from the first three months of 2018 primarily due to growth in commercial and business lending of $1.1 billion. |
• | Revenue increased $8 million, or 5%, from the first three months of 2018 primarily due to increased segment net interest income. |
• | Noninterest expense increased $4 million, or 3%, from the first three months of 2018 in part due to the acquisitions of Diversified and Anderson during the first and second quarters of 2018, respectively. |
• | Average deposits increased $640 million, or 5%, from the first three months of 2018. |
• | Revenue increased $2 million, or 16%, from the first quarter of 2018 primarily driven by $2 million of investment securities gains during the first three months of 2019. |
• | Noninterest expense, from the first three months of 2018, decreased $25 million, or 53%, primarily driven by $21 million of acquisition related costs recorded in the first three months of 2018. In addition, certain unallocated expenses related to Bank Mutual shared services and operations were recorded in Risk Management and Shared Services prior to system conversion in late June 2018. |
• | Income tax expense increased $5 million from the first quarter of 2018 primarily driven by higher income before taxes. |
Standard | Description | Date of anticipated adoption | Effect on financial statements | |||
ASU 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments | The FASB issued an amendment to replace the current incurred loss impairment methodology. Under the new guidance, entities will be required to measure expected credit losses by utilizing forward-looking information to assess an entity's allowance for credit losses. The guidance also requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. An entity must use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. This amendment is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Entities should apply the amendment by means of a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. ASU 2018-19 was issued to clarify that receivables arising from operating leases are not within the scope of Subtopic 326-20. Instead, impairment of receivables arising from operating leases should be accounted for in accordance with Topic 842, Leases. Early adoption is permitted. | 1st Quarter 2020 | The Corporation is currently evaluating the impact on its results of operations, financial position and liquidity. A cross-functional team,consisting of credit, risk management, finance and information technology is currently developing the allowance methodology and assumptions that will be used under the new life of loan methodology. In determining the appropriate methodology, the Corporation has reviewed portfolio segmentation, data, system requirements or upgrades, and the development of models. The Corporation will continue to review and update assumptions, as appropriate. This amendment is required to be adopted using a modified retrospective approach with a cumulative-effect adjustment to the opening retained earnings balance as of the beginning of the first reporting period in which the guidance is effective. While the financial impact of adopting this amendment has not yet been quantified, it is anticipated there will be an increase to the Allowance for Credit Losses as a result of the change from an incurred loss model to an expected loss model which encompasses losses expected over the life of the loan. The extent of the increase is dependent upon the composition of the portfolio, credit quality, and the economic conditions and forecasts at the time of adoption. | |||
ASU 2018-13 Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement | The FASB issued an amendment to add, modify, and remove disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, based on the FASB Concepts Statement "Conceptual Framework for Financial Reporting", including the consideration of costs and benefits. The amendment is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted. | 1st Quarter 2020 | The Corporation is currently evaluating the impact on its results of operations, financial position and liquidity. | |||
ASU 2017-04 Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment | The FASB issued an amendment to simplify the subsequent quantitative measurement of goodwill by eliminating step two from the goodwill impairment test. Instead, an entity will perform only step one of its quantitative goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, and then recognizing 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. An entity will still have the option to perform a qualitative assessment for a reporting unit to determine if the quantitative step one impairment test is necessary. This amendment is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Entities should apply the amendment prospectively. Early adoption is permitted, including in an interim period, for impairment tests performed after January 1, 2017. | 2nd Quarter 2020, consistent with the Corporation's annual impairment test in May of each year. | The Corporation is currently evaluating the impact on its results of operations, financial position, and liquidity. The Corporation has not had to perform a step one quantitative analysis since 2012, which concluded no impairment was necessary. |
Standard | Description | Date of anticipated adoption | Effect on financial statements | |||
ASU 2018-14 Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans | The FASB issued an amendment to modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The amendments also added requirements to disclose the weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates and an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. The amendment also clarifies the disclosure requirements in paragraph 715-20-50-3, which states that certain information for defined benefit pension plans should be disclosed. The amendments in this Update remove disclosures that no longer are considered cost beneficial, clarify the specific requirements of disclosures, and add disclosure requirements identified as relevant. The amendment is effective for fiscal years ending after December 15, 2020. Entities should apply the amendments in this Update on a retrospective basis to all periods presented. Early adoption is permitted. | 1st Quarter 2021 | The Corporation is currently evaluating the impact on its results of operations, financial position and liquidity. |
ITEM 3. | Quantitative and Qualitative Disclosures About Market Risk |
ITEM 4. | Controls and Procedures |
PART II - OTHER INFORMATION |
ITEM 1. | Legal Proceedings |
ITEM 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Total Number of Shares Purchased(a) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs | |||||||||
Period | ||||||||||||
January 1, 2019 - January 31, 2019 | — | $ | — | — | — | |||||||
February 1, 2019 - February 28, 2019 | — | — | — | — | ||||||||
March 1, 2019 - March 31, 2019 | 1,308,301 | 22.93 | 1,308,301 | — | ||||||||
Total | 1,308,301 | $ | 22.93 | 1,308,301 | 8,493,672 |
ITEM 6. | Exhibits |
Exhibit (101), Interactive data files pursuant to Rule 405 of Regulation S-T: (i) Unaudited Consolidated Balance Sheets, (ii) Unaudited Consolidated Statements of Income, (iii) Unaudited Consolidated Statements of Comprehensive Income, (iv) Unaudited Consolidated Statements of Changes in Stockholders’ Equity, (v) Unaudited Consolidated Statements of Cash Flows, and (vi) Notes to Consolidated Financial Statements. |
Signatures |
ASSOCIATED BANC-CORP | ||
(Registrant) | ||
Date: April 30, 2019 | /s/ Philip B. Flynn | |
Philip B. Flynn | ||
President and Chief Executive Officer | ||
Date: April 30, 2019 | /s/ Christopher J. Del Moral-Niles | |
Christopher J. Del Moral-Niles | ||
Chief Financial Officer | ||
Date: April 30, 2019 | /s/ Tammy C. Stadler | |
Tammy C. Stadler | ||
Principal Accounting Officer |
Date: April 30, 2019 | /s/ Philip B. Flynn | |
Philip B. Flynn | ||
President and Chief Executive Officer |
Date: April 30, 2019 | /s/ Christopher J. Del Moral-Niles | |
Christopher J. Del Moral-Niles | ||
Chief Financial Officer |
/s/ Philip B. Flynn | |
Philip B. Flynn | |
Chief Executive Officer | |
April 30, 2019 |
/s/ Christopher J. Del Moral-Niles | |
Christopher J. Del Moral-Niles | |
Chief Financial Officer | |
April 30, 2019 |
Document and Entity Information - $ / shares |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2019 |
Apr. 26, 2019 |
Dec. 31, 2018 |
|
Document And Entity Information [Abstract] | |||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | |
Trading Symbol | ASB | ||
Entity Registrant Name | ASSOCIATED BANC-CORP | ||
Entity Central Index Key | 0000007789 | ||
Document Type | 10-Q | ||
Document Period End Date | Mar. 31, 2019 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | Q1 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Common Stock, Shares Outstanding | 163,903,692 |
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Preferred shares, par value | $ 1.00 | $ 1.00 |
Common shares, par value | $ 0.01 | $ 0.01 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|||
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 86,686 | $ 69,456 | ||
Investment securities available for sale | ||||
Net unrealized gains (losses) | 30,490 | (41,834) | ||
Amortization of net unrealized gain (loss) on available for sale securities transferred to held to maturity securities | 69 | (297) | ||
Reclassification adjustment for net losses (gains) realized in net income(a) | [1] | (1,680) | 0 | |
Reclassification from OCI due to change in accounting principle | 0 | (84) | ||
Reclassification of certain tax effects from OCI | 0 | (8,419) | ||
Income tax (expense) benefit | (7,301) | 10,635 | ||
Other comprehensive income (loss) on investment securities available for sale | 21,578 | (40,000) | ||
Defined benefit pension and postretirement obligations | ||||
Amortization of prior service cost | (38) | (38) | ||
Amortization of actuarial loss (gain) | 64 | 465 | ||
Reclassification of certain tax effects from OCI | 0 | (5,235) | ||
Income tax (expense) benefit | (7) | (107) | ||
Other comprehensive income (loss) on pension and postretirement obligations | 20 | (4,915) | ||
Total other comprehensive income (loss) | 21,597 | (44,915) | ||
Comprehensive income | $ 108,283 | $ 24,541 | ||
|
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands |
Total |
Preferred Equity |
Common Stock |
Surplus |
Retained Earnings |
AOCI Allocated to Parent [Member] |
AOCI Attributable to Parent [Member] |
Treasury Stock |
|||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Beginning balance at Dec. 31, 2017 | $ 3,237,443 | $ 159,929 | $ 1,618 | $ 1,338,722 | $ 1,934,696 | $ (62,758) | $ (134,764) | ||||||
Comprehensive income: | |||||||||||||
Net income | 69,456 | 0 | 0 | 0 | 69,456 | 0 | 0 | ||||||
Other Comprehensive Income, Other, Net of Tax | (31,177) | 0 | 0 | 0 | 0 | (31,177) | 0 | ||||||
Other comprehensive income | (44,915) | (44,915) | |||||||||||
Adoption of new accounting standards | (13,738) | 0 | 0 | 0 | 0 | (13,738) | 0 | ||||||
Comprehensive income | 24,541 | ||||||||||||
Common stock issued: | |||||||||||||
Stock-based compensation plans, net | 10,691 | 0 | 0 | (7,665) | [1] | 20,136 | [1] | 0 | (1,780) | [1] | |||
Acquisitions | 481,688 | 0 | 134 | 390,258 | 0 | 0 | 91,296 | ||||||
Purchase of common stock returned to authorized but unissued | (26,480) | 0 | (11) | (26,469) | 0 | 0 | 0 | ||||||
Purchase of treasury stock | (5,240) | 0 | 0 | 0 | 0 | 0 | (5,240) | ||||||
Cash dividends: | |||||||||||||
Common stock ($0.15 per share in 2018 and $0.17 per share in 2019) | (25,710) | 0 | 0 | 0 | (25,710) | 0 | 0 | ||||||
Preferred stock | (2,339) | 0 | 0 | 0 | (2,339) | 0 | 0 | ||||||
Purchase of preferred stock | (78) | (76) | 0 | 0 | (2) | 0 | 0 | ||||||
Stock-based compensation expense, net | 3,675 | 0 | 0 | 3,675 | 0 | 0 | 0 | ||||||
Tax Act Reclassification | 13,654 | 0 | 0 | 0 | 13,654 | 0 | 0 | ||||||
Change in accounting principle | 84 | 0 | 0 | 0 | 84 | $ 0 | (84) | 0 | |||||
Other | 771 | 0 | 0 | 0 | 771 | 0 | 0 | ||||||
Ending balance at Mar. 31, 2018 | 3,712,699 | 159,853 | 1,741 | 1,698,521 | 2,010,746 | (107,673) | (50,488) | ||||||
Beginning balance at Dec. 31, 2018 | 3,780,888 | 256,716 | 1,752 | 1,712,615 | 2,181,414 | (124,972) | (246,638) | ||||||
Comprehensive income: | |||||||||||||
Net income | 86,686 | 0 | 0 | 0 | 86,686 | 0 | 0 | ||||||
Other comprehensive income | 21,597 | 0 | 0 | 0 | 0 | 21,597 | 0 | ||||||
Comprehensive income | 108,283 | ||||||||||||
Common stock issued: | |||||||||||||
Stock-based compensation plans, net | 7,045 | 0 | 0 | (32,220) | 0 | 0 | 39,265 | ||||||
Purchase of treasury stock | (37,467) | 0 | 0 | 0 | 0 | 0 | (37,467) | ||||||
Cash dividends: | |||||||||||||
Common stock ($0.15 per share in 2018 and $0.17 per share in 2019) | (28,183) | 0 | 0 | 0 | (28,183) | 0 | 0 | ||||||
Preferred stock | (3,801) | 0 | 0 | 0 | (3,801) | 0 | 0 | ||||||
Stock-based compensation expense, net | 9,397 | 0 | 0 | 9,397 | 0 | 0 | 0 | ||||||
Other | (293) | 0 | 0 | 0 | (293) | 0 | 0 | ||||||
Ending balance at Mar. 31, 2019 | $ 3,835,870 | $ 256,716 | $ 1,752 | 1,689,792 | 2,235,824 | $ (103,375) | (244,840) | ||||||
Cash dividends: | |||||||||||||
Increase Adjustment Options, RSA and RSU | $ 36,000 | $ 26,000 | |||||||||||
Decrease Adjustment Options RSA and RSU | $ 10,000 | ||||||||||||
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Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares |
3 Months Ended | |
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Mar. 31, 2019 |
Mar. 31, 2018 |
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Common Stock, Dividends, Per Share, Cash Paid | $ 0.17 | $ 0.15 |
Consolidated Statements of Cash Flows - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |
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Mar. 31, 2019 |
Mar. 31, 2018 |
Dec. 31, 2018 |
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CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 86,686 | $ 69,456 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for credit losses | 6,000 | 0 | |
Depreciation and amortization | 14,358 | 12,208 | |
Addition to (recovery of) valuation allowance on mortgage servicing rights, net | 121 | (474) | |
Amortization of mortgage servicing rights | 2,693 | 2,324 | |
Amortization of other intangible assets | 2,226 | 1,525 | |
Amortization and accretion on earning assets, funding, and other, net | 6,571 | 2,192 | |
Net amortization of tax credit investments | 5,637 | 4,881 | |
Losses (gains) on sales of investment securities, net | (1,680) | 0 | |
Asset (gains) losses, net | (567) | 107 | |
(Gain) loss on mortgage banking activities, net | (3,174) | 624 | |
Mortgage loans originated and acquired for sale | (162,521) | (197,603) | |
Proceeds from sales of mortgage loans held for sale | 159,842 | 187,624 | |
Changes in certain assets and liabilities | |||
(Increase) decrease in interest receivable | (12,068) | (12,859) | |
Increase (decrease) in interest payable | (1,516) | 1,206 | |
Increase (decrease) in expense payable | (51,247) | (6,987) | |
Increase (decrease) in cash collateral | (41,422) | (11,085) | |
Net change in other assets and other liabilities | (23,541) | (10,046) | |
Net cash provided by operating activities | (13,602) | 43,093 | |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Net increase in loans | (216,817) | (160,921) | |
Purchases of: | |||
Available for sale securities | (120,282) | (646,444) | |
Held to maturity securities | (140,670) | (208,517) | |
Federal Home Loan Bank and Federal Reserve Bank stocks | (88,245) | (144,515) | |
Premises, equipment, and software, net of disposals | (13,368) | (9,892) | |
Proceeds from: | |||
Sales of available for sale securities | 131,122 | 452,867 | |
Sale of Federal Home Loan Bank and Federal Reserve Bank stocks | 121,839 | 96,656 | |
Prepayments, calls, and maturities of available for sale investment securities | 135,541 | 158,724 | |
Prepayments, calls, and maturities of held to maturity investment securities | 43,953 | 58,160 | |
Sales, prepayments, calls, and maturities of other assets | 3,179 | 1,182 | |
Net Change in Tax Credit Investments | (18,772) | (7,240) | |
Net cash (paid) received in acquisition | 0 | 59,605 | |
Net cash used in investing activities | (162,518) | (350,336) | |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Net increase (decrease) in deposits | 635,664 | (801,310) | |
Net increase (decrease) in short-term funding | 2,043 | (25,908) | |
Net increase (decrease) in short-term FHLB advances | (880,000) | 1,150,777 | |
Repayment of long-term FHLB advances | (169) | (250,000) | |
Proceeds from long-term FHLB advances | 250,633 | 0 | |
Proceeds from issuance of common stock for stock-based compensation plans | 7,045 | 10,691 | |
Purchase of preferred shares | 0 | (78) | |
Purchase of common stock returned to authorized but unissued | 0 | (26,480) | |
Purchase of treasury stock | (37,467) | (5,240) | |
Cash dividends on common stock | (28,183) | (25,710) | |
Cash dividends on preferred stock | (3,801) | (2,339) | |
Net cash provided by (used in) financing activities | (54,235) | 24,403 | |
Net increase (decrease) in cash, cash equivalents, and restricted cash | (230,355) | (282,840) | |
Cash, cash equivalents, and restricted cash at beginning of period | 876,698 | 716,018 | $ 716,018 |
Cash, cash equivalents, and restricted cash at end of period | 646,343 | 433,178 | $ 876,698 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest | 91,521 | 50,286 | |
Cash paid for income taxes | (5,760) | 926 | |
Loans and bank premises transferred to other real estate owned | 2,222 | 2,129 | |
Capitalized mortgage servicing rights | 1,247 | 9,873 | |
Loans transferred into held for sale from portfolio, net | 1,074 | 3,012 | |
Unsettled Trades To Purchase Securities | 11,244 | 12,095 | |
Acquisition | |||
Fair value of assets acquired, including cash and cash equivalents | 0 | 2,567,123 | |
Fair value ascribed to goodwill and intangible assets | (79) | 242,576 | |
Fair value of liabilities assumed | 0 | 2,809,565 | |
Equity issued in (adjustments related to) acquisition | (79) | 134 | |
Restricted Cash and Cash Equivalents | |||
Restricted Cash | 157,248 | 82,341 | |
Cash and cash equivalents | $ 489,095 | $ 350,837 |
Basis of Presentation |
3 Months Ended |
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Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly the financial position, results of operations and comprehensive income, changes in stockholders’ equity, and cash flows of Associated Banc-Corp (individually referred to herein as the “Parent Company,” and together with all of its subsidiaries and affiliates, collectively referred to herein as the “Corporation”) for the periods presented, and all such adjustments are of a normal recurring nature. The consolidated financial statements include the accounts of all subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheets and revenues and expenses for the period. Actual results could differ significantly from those estimates. Estimates that are particularly susceptible to significant change include the determination of the allowance for loan losses, goodwill impairment assessment, mortgage servicing rights valuation, and income taxes. Management has evaluated subsequent events for potential recognition or disclosure. Within the tables presented, certain columns and rows may not sum due to the use of rounded numbers for disclosure purposes.
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Acquisitions |
3 Months Ended |
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Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Pending Branch Acquisition: During the fourth quarter of 2018, the Corporation announced that Associated Bank had reached an agreement to acquire the Wisconsin branch banking operations of Huntington. Under the terms of the transaction, Associated Bank expects to acquire approximately $850 million in deposits and $134 million in loans. The Huntington branch acquisition will add a net 14 branches to our franchise. On February 15, 2019, the Corporation received regulatory approval for the acquisition. The transaction is subject to customary closing conditions, and is expected to close in June of 2019.
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Summary of Significant Accounting Policies |
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New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies The accounting and reporting policies of the Corporation conform to U.S. generally accepted accounting principles and to general practice within the financial services industry. A discussion of these policies can be found in Note 1 Summary of Significant Accounting Policies included in the Corporation’s 2018 Annual Report on Form 10-K. There has been one change to the Corporation's significant accounting policies since December 31, 2018, which is described below. Leases The Corporation determines if a lease is present at the inception of an agreement. Operating leases are capitalized at commencement and are discounted using the Corporation’s FHLB borrowing rate for a similar term borrowing unless the lease defines an implicit rate within the contract. For operating leases existing prior to January 1, 2019, the rate for the remaining lease term as of January 1, 2019 was used. Right-of-use assets represent the Corporation’s right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease right-of-use assets and operating lease liabilities are recognized on the lease commencement date based on the present value of lease payments over the lease term. No significant judgments or assumptions were involved in developing the estimated operating lease liabilities as the Corporation’s operating lease liabilities largely represent future rental expenses associated with operating leases and the borrowing rates are based on publicly available interest rates. The lease term includes options to extend or terminate the lease. These options to extend or terminate are assessed on a lease-by-lease basis and adjustments are made to the right-of-use asset and lease liability if the Corporation is reasonably certain that an option will be exercised and will be expensed on a straight-line basis.
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Earnings Per Common Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Common Share | Earnings Per Common Share Earnings per common share are calculated utilizing the two-class method. Basic earnings per common share are calculated by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of common shares outstanding. Diluted earnings per common share are calculated by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of common shares outstanding adjusted for the dilutive effect of common stock awards (outstanding stock options and unvested restricted stock awards) and common stock warrants. Presented below are the calculations for basic and diluted earnings per common share:
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Stock-Based Compensation |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation The fair value of stock options granted is estimated on the date of grant using a Black-Scholes option pricing model, while the fair value of restricted stock awards is their fair market value on the date of grant. The fair values of stock options and restricted stock awards are amortized as compensation expense on a straight-line basis over the vesting period of the grants. For retirement eligible colleagues, whose employment meets the definitions under the 2017 Incentive Compensation Plan, expenses related to stock options and restricted stock awards are fully recognized on the date the colleague meets the definition of normal or early retirement. Compensation expense recognized is included in personnel expense in the consolidated statements of income. Performance awards are based on performance goals of earnings per share and total shareholder return with vesting ranging from a minimum of 0% to a maximum of 150% of the target award. Performance awards are valued utilizing a Monte Carlo simulation model to estimate fair value of the awards at the grant date. Assumptions are used in estimating the fair value of stock options granted. The weighted average expected life of the stock option represents the period of time stock options are expected to be outstanding and is estimated using historical data of stock option exercises and forfeitures. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. The expected volatility is based on the implied volatility of the Corporation’s stock. The following assumptions were used in estimating the fair value for options granted in the first three months of 2019 and full year 2018:
A summary of the Corporation’s stock option activity for the three months ended March 31, 2019 is presented below:
(a) In thousands Intrinsic value represents the amount by which the fair market value of the underlying stock exceeds the exercise price of the stock option. For the three months ended March 31, 2019, the intrinsic value of stock options exercised was approximately $2 million, compared to $5 million for the three months ended March 31, 2018. The total fair value of stock options vested was $4 million for the three months ended March 31, 2019 and $3 million for the three months ended March 31, 2018. The Corporation recognized compensation expense for the vesting of stock options of $1 million for both the three months ended March 31, 2019 and March 31, 2018. Included in compensation expense for 2019 was less than $1 million of expense for the accelerated vesting of stock options granted to retirement eligible colleagues. At March 31, 2019, the Corporation had approximately $7 million of unrecognized compensation expense related to stock options that is expected to be recognized over the remaining requisite service periods that extend through first quarter 2023. The Corporation also issues restricted common stock and restricted common stock units to certain key employees (collectively referred to as "restricted stock awards") under the 2017 Incentive Compensation Plan. The following table summarizes information about the Corporation’s restricted stock awards activity for the three months ended March 31, 2019:
(a) In thousands The Corporation amortizes the expense related to restricted stock awards as compensation expense over the vesting period specified in the grant's award agreement. Performance-based restricted stock awards granted during 2018 and 2019 will vest ratably over a period of three years. Service-based restricted stock awards granted during 2018 and 2019 will vest ratably over a period of four years. Expense for restricted stock awards issued of approximately $8 million was recorded for the three months ended March 31, 2019 and $3 million was recorded for the three months ended March 31, 2018. Included in compensation expense for 2019 was approximately $2 million of expense for the accelerated vesting of restricted stock awards granted to retirement eligible colleagues. The Corporation had $33 million of unrecognized compensation costs related to restricted stock awards at March 31, 2019, that is expected to be recognized over the remaining requisite service periods that extend through first quarter 2023. The Corporation has the ability to issue shares from treasury or new shares upon the exercise of stock options or the granting of restricted stock awards. The Board of Directors has authorized management to repurchase shares of the Corporation’s common stock in the market, to be made available for issuance in connection with the Corporation’s employee incentive plans and for other corporate purposes. The repurchase of shares will be based on market and investment opportunities, capital levels, growth prospects, and regulatory constraints. Such repurchases may occur from time to time in open market purchases, block transactions, private transactions, accelerated share repurchase programs, or similar facilities.
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Investment Securities |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities | Investment Securities Investment securities are generally classified as available for sale or held to maturity at the time of purchase. The majority of the Corporation's investment securities are mortgage-related securities issued by GNMA or GSEs such as FNMA and FHLMC. Obligations of state and political subdivisions (municipal securities) make up a large percentage of the portfolio as well. The amortized cost and fair values of securities available for sale and held to maturity at March 31, 2019 were as follows:
The amortized cost and fair values of securities available for sale and held to maturity at December 31, 2018 were as follows:
Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. The expected maturities of investment securities available for sale and held to maturity at March 31, 2019 are shown below:
The proceeds from the sale of investment securities for the three months ended March 31, 2019 and 2018 are shown below:
During the first quarter of 2019, the Corporation sold taxable ABS, MBS, and CMO securities, with the proceeds utilized to pay down borrowings. On February 1, 2018, the date the Bank Mutual acquisition was completed, the Corporation sold Bank Mutual's entire $453 million securities portfolio. The Corporation originally reinvested the proceeds from the Bank Mutual securities portfolio into GNMA residential mortgage-related securities with the goal of reinvesting future cash flows into municipal securities. This strategy was completed during August 2018. Investment securities with a carrying value of approximately $3.6 billion and $3.0 billion at March 31, 2019, and December 31, 2018, respectively, were pledged to secure certain deposits or for other purposes as required or permitted by law. The following represents gross unrealized losses and the related fair value of investment securities available for sale and held to maturity, aggregated by investment category and length of time individual securities have been in a continuous unrealized loss position, at March 31, 2019:
For comparative purposes, the following represents gross unrealized losses and the related fair value of investment securities available for sale and held to maturity, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2018:
The Corporation reviews the investment securities portfolio on a quarterly basis to monitor its exposure to other-than-temporary impairment. A determination as to whether a security’s decline in fair value is other-than-temporary takes into consideration numerous factors and the relative significance of any single factor can vary by security. Some factors the Corporation may consider in the other-than-temporary impairment analysis include the length of time and extent to which the security has been in an unrealized loss position, changes in security ratings, financial condition and near-term prospects of the issuer, as well as security and industry specific economic conditions. Based on the Corporation’s evaluation, management does not believe any unrealized loss at March 31, 2019 represents an other-than-temporary impairment as these unrealized losses are primarily attributable to changes in interest rates and the current market conditions, and not credit deterioration. The unrealized losses reported for municipal securities relate to various state and local political subdivisions and school districts. The unrealized losses at March 31, 2019 for mortgage-related securities were less than the previous quarter due to the decrease in overall interest rates. The U.S. Treasury 3 year and 5 year rates decreased by 25 bp and 28 bp, respectively, from December 31, 2018. The Corporation does not intend to sell nor does it believe that it will be required to sell the securities in an unrealized loss position before recovery of their amortized cost basis. Equity securities with readily determinable fair values: The Corporation's portfolio of equity securities is primarily comprised of CRA Qualified Investment mutual funds. At both March 31, 2019 and December 31, 2018, the Corporation had equity securities with readily determinable fair values of $2 million. In addition, in 2008, the Corporation received Visa Class B restricted shares as part of Visa's initial public offering. Based on the existing transfer restriction and the uncertainty of the covered litigation, the approximately 119 thousand Class B shares remaining that the Corporation owned as of March 31, 2019 are carried at a zero cost basis. FHLB and Federal Reserve Bank stocks: The Corporation is required to maintain Federal Reserve stock and FHLB stock as a member of both the Federal Reserve System and the FHLB, and in amounts as required by these institutions. These equity securities are “restricted” in that they can only be sold back to the respective institutions or another member institution at par. Therefore, they are less liquid than other marketable equity securities and their fair value is equal to amortized cost. At March 31, 2019 and December 31, 2018, the Corporation had FHLB stock of $139 million and $173 million, respectively. The Corporation had Federal Reserve Bank stock of $77 million at both March 31, 2019 and December 31, 2018.
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Loans |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans | Loans The period end loan composition was as follows:
(a) Includes $5 million of purchased credit-impaired loans at March 31, 2019 and December 31, 2018. The following table presents commercial and consumer loans by credit quality indicator at March 31, 2019:
The following table presents commercial and consumer loans by credit quality indicator at December 31, 2018:
Factors that are important to managing overall credit quality are sound loan underwriting and administration, systematic monitoring of existing loans and commitments, effective loan review on an ongoing basis, early identification of potential problems, and appropriate allowance for loan losses, allowance for unfunded commitments, nonaccrual, and charge off policies. For commercial loans, management has determined the pass credit quality indicator to include credits exhibiting acceptable financial statements, cash flow, and leverage. If any risk exists, it is mitigated by the loan structure, collateral, monitoring, or control. For consumer loans, performing loans include credits performing in accordance with the original contractual terms. Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Special mention credits have potential weaknesses that deserve management’s attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the credit. Potential problem loans are considered inadequately protected by the current net worth and paying capacity of the obligor or the collateral pledged. These loans generally have a well-defined weakness, or weaknesses, that may jeopardize liquidation of the debt and are characterized by the distinct possibility the Corporation will sustain some loss if the deficiencies are not corrected. Lastly, management considers a loan to be impaired when it is probable the Corporation will be unable to collect all amounts due according to the original contractual terms of the note agreement, including both principal and interest. Management has determined commercial and consumer loan relationships in nonaccrual status or those with their terms restructured in a troubled debt restructuring meet this impaired loan definition. Commercial loans classified as special mention, potential problem, and nonaccrual are reviewed at a minimum on a quarterly basis, while pass and performing rated credits are reviewed on an annual basis or more frequently if the loan renewal is less than one year or if otherwise warranted. The following table presents loans by past due status at March 31, 2019:
(a) Of the total nonaccrual loans, $106 million, or 68%, were current with respect to payment at March 31, 2019. The following table presents loans by past due status at December 31, 2018:
(a) Of the total nonaccrual loans, $74 million, or 58%, were current with respect to payment at December 31, 2018. The following table presents impaired loans individually evaluated under ASC Topic 310, excluding $5 million of purchased credit-impaired loans, at March 31, 2019:
(a) The net recorded investment (defined as recorded investment, net of the related allowance) of the impaired loans represented 74% of the unpaid principal balance at March 31, 2019. The following table presents impaired loans individually evaluated under ASC Topic 310, excluding $5 million of purchased credit-impaired loans, at December 31, 2018:
(a) The net recorded investment (defined as recorded investment, net of the related allowance) of the impaired loans represented 72% of the unpaid principal balance at December 31, 2018. Troubled Debt Restructurings (“Restructured Loans”) Loans are considered restructured loans if concessions have been granted to borrowers that are experiencing financial difficulty. The Corporation had a recorded investment of approximately $5 million in loans modified in troubled debt restructurings during the three months ended March 31, 2019, of which $1 million were in accrual status and approximately $4 million were in nonaccrual pending a sustained period of repayment. The following table presents nonaccrual and performing restructured loans by loan portfolio:
The following table provides the number of loans modified in a troubled debt restructuring by loan portfolio, the recorded investment and unpaid principal balance for the three months ended March 31, 2019 and 2018:
(a) Represents post-modification outstanding recorded investment. (b) Represents pre-modification outstanding recorded investment. Restructured loan modifications may include payment schedule modifications, interest rate concessions, maturity date extensions, modification of note structure (A/B Note), non-reaffirmed Chapter 7 bankruptcies, principal reduction, or some combination of these concessions. During the three months ended March 31, 2019, restructured loan modifications of commercial and industrial, commercial real estate, and real estate construction loans primarily included maturity date extensions and payment schedule modifications. Restructured loan modifications of home equity and residential mortgage loans primarily included maturity date extensions, interest rate concessions, non-reaffirmed Chapter 7 bankruptcies, or a combination of these concessions for the three months ended March 31, 2019. The following table provides the number of loans modified in a troubled debt restructuring during the previous twelve months which subsequently defaulted during the three months ended March 31, 2019 and 2018 and the recorded investment in these restructured loans as of March 31, 2019 and 2018:
All loans modified in a troubled debt restructuring are evaluated for impairment. The nature and extent of the impairment of restructured loans, including those which have experienced a subsequent payment default, are considered in the determination of an appropriate level of the allowance for loan losses. Allowance for Credit Losses The allowance for credit losses is comprised of the allowance for loan losses and the allowance for unfunded commitments. The level of the allowance for loan losses represents management’s estimate of an amount appropriate to provide for probable credit losses in the loan portfolio at the balance sheet date. The allowance for unfunded commitments is maintained at a level believed by management to be sufficient to absorb estimated probable losses related to unfunded credit facilities (including unfunded loan commitments and letters of credit) and is included in accrued expenses and other liabilities on the consolidated balance sheets. See Note 12 for additional information on the allowance for unfunded commitments. The following table presents a summary of the changes in the allowance for loan losses by portfolio segment for the three months ended March 31, 2019:
(a) Loans acquired in business combinations and accounted for under ASC topic 310-30 "Receivables — Loans and Debt Securities Acquired with Deteriorated Credit Quality." For comparison purposes, a summary of the changes in the allowance for loan losses by portfolio segment for the year ended December 31, 2018, was as follows:
The allowance for unfunded commitments is maintained at a level believed by management to be sufficient to absorb estimated probable losses related to unfunded credit facilities (including unfunded loan commitments and letters of credit) and is included in accrued expenses and other liabilities on the consolidated balance sheets. The following table presents a summary of the changes in the allowance for unfunded commitments:
Loans Acquired in Acquisition Loans acquired in a business combination are recorded at estimated fair value on their purchase date without a carryover of the related allowance for loan and lease losses. Acquired loans are segregated into two types:
For performing loans the difference between the estimated fair value of the loans and the principal outstanding is accreted over the remaining life of the loans. In accordance with ASC 310-30, purchased credit-impaired loans are pooled by loan type and the difference between contractually required payments at acquisition and the cash flows expected to be collected is referred to as the non-accretable difference. Further, any excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable yield and is recognized into interest income over the remaining life of the loan pools when there is a reasonable expectation about the amount and timing of such cash flows. If a reasonable expectation on the amount or timing of such cash flows cannot be determined, accretion of the fair value discount for nonperforming loans will be recognized using the cost recovery method of accounting. Changes in the accretable yield for loans acquired and accounted for under ASC Topic 310-30 were as follows for the three months ended March 31, 2019 and for the year ended December 31, 2018:
(a) Primarily includes charge-offs which are accounted for under ASC Subtopic 310-30 "Receivables — Loans and Debt Securities Acquired with Deteriorated Credit Quality." For loans acquired, the fair value of purchased credit-impaired loans, on the acquisition date, was determined based on assigned risk ratings, expected cash flows and the fair value of loan collateral. The fair value of loans that were non-impaired was determined based on estimates of losses on defaults and other market factors. At March 31, 2019, the Corporation had a total of approximately $18 million in net unaccreted purchase discount, of which approximately $16 million was related to performing loans and approximately $2 million was related to the Corporation's purchased credit-impaired loans.
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Goodwill and Other Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill Goodwill is not amortized but is instead subject to impairment tests on at least an annual basis, and more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The Corporation conducted its most recent annual impairment testing in May 2018, utilizing a qualitative assessment. Factors that management considered in this assessment included macroeconomic conditions, industry and market considerations, overall financial performance of the Corporation and each reporting unit (both current and projected), changes in management strategy, and changes in the composition or carrying amount of net assets. In addition, management considered the changes in both the Corporation’s common stock price and in the overall bank common stock index (based on the S&P 400 Regional Bank Sub-Industry Index), as well as the Corporation’s earnings per common share trend over the past year. Based on these assessments, management concluded that it is more likely than not that the estimated fair value exceeded the carrying value (including goodwill) for each reporting unit. Therefore, a step one quantitative analysis was not required. There have been no events since the May 2018 impairment testing that have changed the Corporation's impairment assessment conclusion. There were no impairment charges recorded in 2018 or the first three months of 2019. At both March 31, 2019 and December 31, 2018, the Corporation had goodwill of $1.2 billion. Other Intangible Assets The Corporation has other intangible assets that are amortized, consisting of CDI, other intangibles (primarily related to customer relationships acquired in connection with the Corporation’s insurance agency acquisitions), and mortgage servicing rights. For CDI and other intangibles, changes in the gross carrying amount, accumulated amortization, and net book value were as follows:
Mortgage Servicing Rights The Corporation sells residential mortgage loans in the secondary market and typically retains the right to service the loans sold. MSR are amortized in proportion to and over the period of estimated net servicing income and assessed for impairment at each reporting date. The Corporation evaluates its mortgage servicing rights asset for impairment at minimum on a quarterly basis. Impairment is assessed based on fair value at each reporting date using estimated prepayment speeds of the underlying mortgage loans serviced and stratifications based on the risk characteristics of the underlying loans (predominantly loan type and note interest rate). As mortgage interest rates fall, prepayment speeds are usually faster and the value of the mortgage servicing rights asset generally decreases, requiring additional valuation reserve. Conversely, as mortgage interest rates rise, prepayment speeds are usually slower and the value of the mortgage servicing rights asset generally increases, requiring less valuation reserve. A valuation allowance is established, through a charge to earnings, to the extent the amortized cost of the mortgage servicing rights exceeds the estimated fair value by stratification. If it is later determined that all or a portion of the temporary impairment no longer exists for a stratification, the valuation is reduced through a recovery to earnings. An other-than-temporary impairment (i.e., recoverability is considered remote when considering interest rates and loan pay off activity) is recognized as a write-down of the mortgage servicing rights asset and the related valuation allowance (to the extent a valuation allowance is available) and then against earnings. A direct write-down permanently reduces the carrying value of the mortgage servicing rights asset and valuation allowance, precluding subsequent recoveries. See Note 12 for a discussion of the recourse provisions on sold residential mortgage loans. See Note 13 which further discusses fair value measurement relative to the mortgage servicing rights asset. A summary of changes in the balance of the mortgage servicing rights asset and the mortgage servicing rights valuation allowance is as follows:
(a) Includes the amortization of mortgage servicing rights and additions / recoveries to the valuation allowance of mortgage servicing rights, and is a component of mortgage banking, net in the consolidated statements of income. The projections of amortization expense are based on existing asset balances, the current interest rate environment, and prepayment speeds as of March 31, 2019. The actual amortization expense the Corporation recognizes in any given period may be significantly different depending upon acquisition or sale activities, changes in interest rates, prepayment speeds, market conditions, regulatory requirements, and events or circumstances that indicate the carrying amount of an asset may not be recoverable. The following table shows the estimated future amortization expense for amortizing intangible assets:
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Short and Long-Term Funding |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short and Long-Term Funding | Short and Long-Term Funding The following table presents the components of short-term funding (funding with original contractual maturities of one year or less), long-term funding (funding with original contractual maturities greater than one year), and FHLB advances (funding based on original contractual maturities):
Securities Sold Under Agreements to Repurchase ("Repurchase Agreements") The Corporation enters into agreements under which it sells securities subject to an obligation to repurchase the same or similar securities. Under these arrangements, the Corporation may transfer legal control over the assets but still retain effective control through an agreement that both entitles and obligates the Corporation to repurchase the assets. The obligation to repurchase the securities is reflected as a liability on the Corporation’s consolidated balance sheets, while the securities underlying the repurchase agreements remain in the respective investment securities asset accounts (i.e., there is no offsetting or netting of the investment securities assets with the repurchase agreement liabilities). See Note 11 for additional disclosures on balance sheet offsetting. The Corporation utilizes securities sold under agreements to repurchase to facilitate the needs of its customers. As of March 31, 2019, the Corporation pledged agency mortgage-related securities with a fair value of $171 million as collateral for the repurchase agreements. Securities pledged as collateral under repurchase agreements are maintained with the Corporation's safekeeping agents and are monitored on a daily basis due to the market risk of fair value changes in the underlying securities. The Corporation generally pledges excess securities to ensure there is sufficient collateral to satisfy short-term fluctuations in both the repurchase agreement balances and the fair value of the underlying securities. The remaining contractual maturity of the securities sold under agreements to repurchase in the consolidated balance sheets as of March 31, 2019 and December 31, 2018 are presented in the following table:
Long-Term Funding Senior Notes In August 2018, Associated Bank, N.A. issued $300 million of senior notes, due August 2021, and callable July 2021. The senior notes have a fixed coupon interest rate of 3.50% and were issued at a discount. In November 2014, the Corporation issued $250 million of senior notes, due November 2019, and callable October 2019. The senior notes have a fixed coupon interest rate of 2.75% and were issued at a discount. Subordinated Notes In November 2014, the Corporation issued $250 million of 10-year subordinated notes, due January 2025, and callable October 2024. The subordinated notes have a fixed coupon interest rate of 4.25% and were issued at a discount. FHLB Advances At March 31, 2019, the Corporation had $2.9 billion of FHLB advances, down $630 million from December 31, 2018. As of March 31, 2019, the Corporation had $2.8 billion of putable FHLB advances with a one-time option where the FHLB can call the advance prior to the contractual maturity. The contractual weighted average life to the put date of these advances was 0.69 years, with put dates ranging from 2019 through 2020. The weighted average life to contractual maturity on these advances was 7.08 years, with those dates ranging from 2023 through 2028. As of March 31, 2019, it is anticipated that all of these advances will be called by the FHLB on their put date. The original contractual maturity or next put date of the Corporation's FHLB advances as of March 31, 2019 and December 31, 2018 are presented in the following table:
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Derivative and Hedging Activities |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative and Hedging Activities | Derivative and Hedging Activities The Corporation is exposed to certain risk arising from both its business operations and economic conditions. The Corporation principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Corporation manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Corporation enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Corporation's derivative financial instruments are used to manage differences in the amount, timing, and duration of the Corporation's known or expected cash receipts and its known or expected cash payments principally related to the Corporation's assets. The contract or notional amount of a derivative is used to determine, along with the other terms of the derivative, the amounts to be exchanged between the counterparties. The Corporation is exposed to credit risk in the event of nonperformance by counterparties to financial instruments. To mitigate the counterparty risk, interest rate and commodity-related instruments generally contain language outlining collateral pledging requirements for each counterparty. Collateral must be posted when the market value exceeds certain mutually agreed upon threshold limits. Federal regulations require the Corporation to clear all LIBOR interest rate swaps through a clearing house ("centrally cleared"), if possible. Securities are often pledged as collateral for centrally cleared interest rate swaps and derivatives. The Corporation pledged $35 million of investment securities as collateral at March 31, 2019, and pledged $36 million of investment securities as collateral at December 31, 2018. Cash is often pledged as collateral for interest rate swaps and derivatives that are not centrally cleared. At March 31, 2019, the Corporation posted $32 million of cash collateral for the margin compared to $1 million at December 31, 2018. Fair Value Hedges of Interest Rate Risk The Corporation is exposed to changes in the fair value of certain of its pools of prepayable fixed-rate assets due to changes in benchmark interest rates. The Corporation uses interest rate swaps to manage its exposure to changes in fair value on these instruments attributable to changes in the designated benchmark interest rate. Interest rate swaps designated as fair value hedges involve the payment of fixed-rate amounts to a counterparty in exchange for the Corporation receiving variable-rate payments over the life of the agreements without the exchange of the underlying notional amount. For derivatives designated and that qualify as fair value hedges, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in interest income. Derivatives to Accommodate Customer Needs The Corporation also facilitates customer borrowing activity by entering into various derivative contracts which are designated as free standing derivative contracts. Free standing derivative products are entered into primarily for the benefit of commercial customers seeking to manage their exposures to interest rate risk, foreign currency, and commodity prices. These derivative contracts are not designated against specific assets and liabilities on the consolidated balance sheets or forecasted transactions and, therefore, do not qualify for hedge accounting treatment. Such derivative contracts are carried at fair value on the consolidated balance sheets with changes in the fair value recorded as a component of capital markets, net, and typically include interest rate-related instruments (swaps and caps), foreign currency exchange forwards, and commodity contracts. See Note 11 for additional information and disclosures on balance sheet offsetting. Interest rate-related instruments: The Corporation provides interest rate risk management services to commercial customers, primarily forward interest rate swaps and caps. The Corporation’s market risk from unfavorable movements in interest rates related to these derivative contracts is generally economically hedged by concurrently entering into offsetting derivative contracts. The offsetting derivative contracts have identical notional values, terms and indices. Foreign currency exchange forwards: The Corporation provides foreign currency exchange services to customers, primarily forward contracts. The Corporation's customers enter into a foreign currency exchange forward with the Corporation as a means for them to mitigate exchange rate risk. The Corporation mitigates its risk by then entering into an offsetting foreign currency exchange derivative contract. Commodity contracts: Commodity contracts are entered into primarily for the benefit of commercial customers seeking to manage their exposure to fluctuating commodity prices. The Corporation mitigates its risk by then entering into an offsetting commodity derivative contract. Mortgage Derivatives Interest rate lock commitments to originate residential mortgage loans held for sale and forward commitments to sell residential mortgage loans are considered derivative instruments, and the fair value of these commitments is recorded on the consolidated balance sheets with the changes in fair value recorded as a component of mortgage banking, net. Written and Purchased Options (Time Deposit) Historically, the Corporation had entered into written and purchased option derivative instruments to facilitate an equity linked time deposit product (the “Power CD”), which the Corporation ceased offering in September 2013. The Power CD was a time deposit that provided the purchaser a guaranteed return of principal at maturity plus a potential equity return (a written option), while the Corporation received a known stream of funds based on the equity return (a purchased option). The written and purchased options are mirror derivative instruments, which are carried at fair value on the consolidated balance sheets. The table below identifies the consolidated balance sheets category and fair values of the Corporation’s derivative instruments:
The following table presents amounts that were recorded on the consolidated balance sheets related to cumulative basis adjustment for fair value hedges:
(a) These amounts include the amortized cost basis of closed portfolios used to designated hedging relationships in which the hedged item is the last layer expected to be remaining at the end of the hedging relationship. At March 31, 2019, the amortized cost basis of the closed portfolios used in these hedging relationships was $1.1 billion; the positive cumulative basis adjustments associated with these hedging relationships was $2 million; and the amounts of the designated hedged items were $500 million. The table below identifies the effect of fair value hedge accounting on the Corporation's consolidated statements of income during the three months ended March 31, 2019 and twelve months ended December 31, 2018:
The table below identifies the effect of derivatives not designated as hedging instruments on the Corporation's consolidated statements of income during the three months ended March 31, 2019 and 2018:
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Balance Sheet Offsetting |
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Offsetting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Offsetting | Balance Sheet Offsetting Interest Rate-Related Instruments and Commodity Contracts (“Interest and Commodity Agreements”) The Corporation enters into interest rate-related instruments to facilitate the interest rate risk management strategies of commercial customers. The Corporation also enters into commodity contracts to manage commercial customers' exposure to fluctuating commodity prices. The Corporation mitigates these risks by entering into equal and offsetting interest and commodity agreements with highly rated third party financial institutions. The Corporation is party to master netting arrangements with its financial institution counterparties that create single net settlements of all legal claims or obligations to pay or receive the net amount of settlement of the individual interest and commodity agreements. Collateral, usually in the form of investment securities and cash, is posted by the counterparty with net liability positions in accordance with contract thresholds. The Corporation does not offset assets and liabilities under these arrangements for financial statement presentation purposes. See Note 10 for additional information on the Corporation’s derivative and hedging activities. Securities Sold Under Agreements to Repurchase (“Repurchase Agreements”) The Corporation enters into agreements under which it sells securities subject to an obligation to repurchase the same or similar securities. These repurchase agreements are accounted for as collateralized financing arrangements (i.e., secured borrowings) and not as a sale and subsequent repurchase of securities (i.e., there is no offsetting or netting of the investment securities assets with the repurchase agreement liabilities). The right of set-off for a repurchase agreement resembles a secured borrowing, whereby the collateral would be used to settle the fair value of the repurchase agreement should the Corporation be in default (e.g., fails to make an interest payment to the counterparty). In addition, the Corporation does not enter into reverse repurchase agreements; therefore, there is no such offsetting to be done with the repurchase agreements. See Note 9 for additional disclosures on repurchase agreements. The following table presents the assets and liabilities subject to an enforceable master netting arrangement. The interest and commodity agreements the Corporation has with its commercial customers are not subject to an enforceable master netting arrangement and are therefore excluded from this table:
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Commitments, Off-Balance Sheet Arrangements, Legal Proceedings and Regulatory Matters |
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Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments, Off-Balance Sheet Arrangements, Legal Proceedings and Regulatory Matters | Commitments, Off-Balance Sheet Arrangements, Legal Proceedings and Regulatory Matters The Corporation utilizes a variety of financial instruments in the normal course of business to meet the financial needs of its customers and to manage its own exposure to fluctuations in interest rates. These financial instruments include lending-related and other commitments (see below) as well as derivative instruments (see Note 10). The following is a summary of lending-related commitments:
(a) These off-balance sheet financial instruments are exercisable at the market rate prevailing at the date the underlying transaction will be completed and, thus, are deemed to have no current fair value, or the fair value is based on fees currently charged to enter into similar agreements and is not material at March 31, 2019 or December 31, 2018. (b) Interest rate lock commitments to originate residential mortgage loans held for sale are considered derivative instruments and are disclosed in Note 10. (c) The Corporation has established a liability of $2 million at both March 31, 2019 and December 31, 2018, as an estimate of the fair value of these financial instruments. Lending-related Commitments As a financial services provider, the Corporation routinely enters into commitments to extend credit. Such commitments are subject to the same credit policies and approval process accorded to loans made by the Corporation, with each customer’s creditworthiness evaluated on a case-by-case basis. The commitments generally have fixed expiration dates or other termination clauses and may require the payment of a fee. The Corporation’s exposure to credit loss in the event of nonperformance by the other party to these financial instruments is represented by the contractual amount of those instruments. The amount of collateral obtained, if deemed necessary by the Corporation upon extension of credit, is based on management’s credit evaluation of the customer. Since a significant portion of commitments to extend credit are subject to specific restrictive loan covenants or may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash flow requirements. An allowance for unfunded commitments is maintained at a level believed by management to be sufficient to absorb estimated probable losses related to unfunded commitments (including unfunded loan commitments and letters of credit). The allowance for unfunded commitments totaled $26 million at March 31, 2019 and $24 million at December 31, 2018, and is included in accrued expenses and other liabilities on the consolidated balance sheets. Lending-related commitments include commitments to extend credit, commitments to originate residential mortgage loans held for sale, commercial letters of credit, and standby letters of credit. Commitments to extend credit are legally binding agreements to lend to customers at predetermined interest rates, as long as there is no violation of any condition established in the contracts. Interest rate lock commitments to originate residential mortgage loans held for sale and forward commitments to sell residential mortgage loans are considered derivative instruments, and the fair value of these commitments is recorded on the consolidated balance sheets. The Corporation’s derivative and hedging activity is further described in Note 10. Commercial and standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. Commercial letters of credit are issued specifically to facilitate commerce and typically result in the commitment being drawn on when the underlying transaction is consummated between the customer and the third party, while standby letters of credit generally are contingent upon the failure of the customer to perform according to the terms of the underlying contract with the third party. Other Commitments The Corporation invests in qualified affordable housing projects, federal and state historic projects, and new market projects for the purpose of community reinvestment and obtaining tax credits and other tax benefits. Return on the Corporation's investment in these projects comes in the form of the tax credits and tax losses that pass through to the Corporation. The aggregate carrying value of these investments at March 31, 2019 was $169 million, compared to $136 million at December 31, 2018, included in investment in unconsolidated subsidiaries on the consolidated balance sheets. The Corporation utilizes the proportional amortization method to account for investments in qualified affordable housing projects. Under the proportional amortization method, the Corporation amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits. The Corporation recognized additional income tax expense attributable to the amortization of investments in qualified affordable housing projects of $5 million for both the three months ended March 31, 2019 and 2018. The Corporation's remaining investment in qualified affordable housing projects accounted for under the proportional amortization method totaled $160 million at March 31, 2019 and $132 million at December 31, 2018. The Corporation’s unfunded equity contributions relating to investments in qualified affordable housing, federal and state historic projects, and new market projects are recorded in accrued expenses and other liabilities on the consolidated balance sheets. The Corporation’s remaining unfunded equity contributions totaled $73 million and $51 million at March 31, 2019 and December 31, 2018, respectively. For the three months ended March 31, 2019 and the year ended December 31, 2018, the Corporation did not record any impairment related to qualified affordable housing investments. The Corporation has principal investment commitments to provide capital-based financing to private and public companies through either direct investments in specific companies or through investment funds and partnerships. The timing of future cash requirements to fund such principal investment commitments is generally dependent on the investment cycle, whereby privately held companies are funded by private equity investors and ultimately sold, merged, or taken public through an initial offering, which can vary based on overall market conditions, as well as the nature and type of industry in which the companies operate. The Corporation also invests in loan pools that support CRA loans. The timing of future cash requirements to fund these pools is dependent upon loan demand, which can vary over time. The aggregate carrying value of these investments was $25 million at both March 31, 2019 and December 31, 2018, included in investment in unconsolidated subsidiaries on the consolidated balance sheets. Legal Proceedings The Corporation is party to various pending and threatened claims and legal proceedings arising in the normal course of business activities, some of which involve claims for substantial amounts. Although there can be no assurance as to the ultimate outcomes, the Corporation believes it has meritorious defenses to the claims asserted against it in its currently outstanding matters, including the matters described below, and with respect to such legal proceedings, intends to continue to defend itself vigorously. The Corporation will consider settlement of cases when, in management’s judgment, it is in the best interests of both the Corporation and its shareholders. On at least a quarterly basis, the Corporation assesses its liabilities and contingencies in connection with all pending or threatened claims and litigation, utilizing the most recent information available. On a matter by matter basis, an accrual for loss is established for those matters which the Corporation believes it is probable that a loss may be incurred and that the amount of such loss can be reasonably estimated. Once established, each accrual is adjusted as appropriate to reflect any subsequent developments. Accordingly, management’s estimate will change from time to time, and actual losses may be more or less than the current estimate. For matters where a loss is not probable, or the amount of the loss cannot be estimated, no accrual is established. Resolution of legal claims is inherently unpredictable, and in many legal proceedings various factors exacerbate this inherent unpredictability, including where the damages sought are unsubstantiated or indeterminate, it is unclear whether a case brought as a class action will be allowed to proceed on that basis, discovery is not complete, the proceeding is not yet in its final stages, the matters present legal uncertainties, there are significant facts in dispute, there are a large number of parties (including where it is uncertain how liability, if any, will be shared among multiple defendants), or there is a wide range of potential results. The Corporation does not believe it is presently subject to any legal proceedings the resolution of which would have a material adverse effect on our business, financial condition, operating results or cash flows. Regulatory Matters A variety of consumer products, including mortgage and deposit products, and certain fees and charges related to such products, have come under increased regulatory scrutiny. It is possible that regulatory authorities could bring enforcement actions, including civil money penalties, or take other actions against the Corporation and the Bank in regard to these consumer products. The Bank could also determine of its own accord, or be required by regulators, to refund or otherwise make remediation payments to customers in connection with these products. It is not possible at this time for management to assess the probability of a material adverse outcome or reasonably estimate the amount of any potential loss related to such matters. Mortgage Repurchase Reserve The Corporation sells residential mortgage loans to investors in the normal course of business. Residential mortgage loans sold to others are predominantly conventional residential first lien mortgages originated under the Corporation's usual underwriting procedures, and are most often sold on a nonrecourse basis, primarily to the GSEs. The Corporation’s agreements to sell residential mortgage loans in the normal course of business usually require certain representations and warranties on the underlying loans sold, related to credit information, loan documentation, collateral, and insurability. Subsequent to being sold, if a material underwriting deficiency or documentation defect is discovered, the Corporation may be obligated to repurchase the loan or reimburse the GSEs for losses incurred (collectively, “make whole requests”). The make whole requests and any related risk of loss under the representations and warranties are largely driven by borrower performance. As a result of make whole requests, the Corporation has repurchased loans with principal balances of approximately $305 thousand during the three months ended March 31, 2019 and $2 million for the year ended December 31, 2018. The loss reimbursement and settlement claims paid for the three months ended March 31, 2019 and for the year ended December 31, 2018 were negligible. Make whole requests during 2018 and the first three months of 2019 generally arose from loans sold during the period of January 1, 2012 to December 31, 2018. Since January 1, 2012, loans sold totaled $11.3 billion at the time of sale, and consisted primarily of loans sold to GSEs. As of March 31, 2019, approximately $7.3 billion of these sold loans remain outstanding. The balance in the mortgage repurchase reserve at the balance sheet date reflects the estimated amount of potential loss the Corporation could incur from repurchasing a loan, as well as loss reimbursements, indemnifications, and other settlement resolutions. The following summarizes the changes in the mortgage repurchase reserve for the three months ended March 31, 2019 and for the year ended December 31, 2018:
The Corporation may also sell residential mortgage loans with limited recourse (limited in that the recourse period ends prior to the loan’s maturity, usually after certain time and / or loan paydown criteria have been met), whereby repurchase could be required if the loan had defined delinquency issues during the limited recourse periods. At March 31, 2019 and December 31, 2018, there were approximately $31 million and $47 million, respectively, of residential mortgage loans sold with such recourse risk. There have been limited instances and immaterial historical losses on repurchases for recourse under the limited recourse criteria. The Corporation has a subordinate position to the FHLB in the credit risk on residential mortgage loans it sold to the FHLB in exchange for a monthly credit enhancement fee. The Corporation has not sold loans to the FHLB with such credit risk retention since February 2005. At March 31, 2019 and December 31, 2018, there were $54 million and $57 million, respectively, of such residential mortgage loans with credit risk recourse, upon which there have been negligible historical losses to the Corporation.
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements Fair value represents the estimated price at which an orderly transaction to sell an asset or to transfer a liability would take place between market participants at the measurement date under current market conditions (i.e., an exit price concept). Following is a description of the valuation methodologies used for the Corporation’s more significant instruments measured on a recurring basis at fair value, including the general classification of such instruments pursuant to the valuation hierarchy. Assets and Liabilities Measured at Fair Value on a Recurring Basis Investment Securities Available for Sale: Where quoted prices are available in an active market, investment securities are classified in Level 1 of the fair value hierarchy. If quoted market prices are not available for the specific security, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flows, with consideration given to the nature of the quote and the relationship of recently evidenced market activity to the fair value estimate, and are classified in Level 2 of the fair value hierarchy. Lastly, in certain cases where there is limited activity or less transparency around inputs to the estimated fair value, securities are classified within Level 3 of the fair value hierarchy. To validate the fair value estimates, assumptions, and controls, the Corporation looks to transactions for similar instruments and utilizes independent pricing provided by third party vendors or brokers and relevant market indices. While none of these sources are solely indicative of fair value, they serve as directional indicators for the appropriateness of the Corporation’s fair value estimates. The Corporation has determined that the fair value measures of its investment securities are classified predominantly within Level 2 of the fair value hierarchy. See Note 6 for additional disclosure regarding the Corporation’s investment securities. Equity Securities with Readily Determinable Fair Values: The Corporation's portfolio of equity securities is primarily comprised of CRA Qualified Investment mutual funds. Since quoted prices for the Corporation's equity securities are readily available in an active market, they are classified in Level 1 of the fair value hierarchy. See Note 6 for additional disclosure regarding the Corporation’s investment securities. Residential Loans Held for Sale: Residential loans held for sale, which consist generally of current production of certain fixed-rate, first-lien residential mortgage loans, are carried at estimated fair value. Management has elected the fair value option to account for all newly originated mortgage loans held for sale, which results in the financial impact of changing market conditions being reflected currently in earnings as opposed to being dependent upon the timing of sales. Therefore, the continually adjusted values better reflect the price the Corporation expects to receive from the sale of such loans. The estimated fair value is based on what secondary markets are currently offering for portfolios with similar characteristics, which the Corporation classifies as a Level 2 fair value measurement. Derivative Financial Instruments (Interest Rate-Related Instruments): The Corporation utilizes interest rate swaps to hedge exposure to interest rate risk and variability of fair value related to changes in the underlying interest rate of the hedged item. These hedged interest rate swaps are classified as fair value hedges. See Note 10 for additional disclosure regarding the Corporation’s fair value hedges. In addition, the Corporation offers interest rate-related instruments (swaps and caps) to service its customers’ needs, for which the Corporation simultaneously enters into offsetting derivative financial instruments (i.e., mirror interest rate-related instruments) with third parties to manage its interest rate risk associated with these financial instruments. The valuation of the Corporation’s derivative financial instruments is determined using discounted cash flow analysis on the expected cash flows of each derivative and also includes a nonperformance / credit risk component (credit valuation adjustment). See Note 10 for additional disclosure regarding the Corporation’s interest rate-related instruments. The discounted cash flow analysis component in the fair value measurement reflects the contractual terms of the derivative financial instruments, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. More specifically, the fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) with the variable cash payments (or receipts) based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. Likewise, the fair values of interest rate options (i.e., interest rate caps) are determined using the market standard methodology of discounting the future expected cash receipts that would occur if variable interest rates fall below (or rise above) the strike rate of the floors (or caps), with the variable interest rates used in the calculation of projected receipts on the floor (or cap) based on an expectation of future interest rates derived from observable market interest rate curves and volatilities. The Corporation also incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative financial instruments for the effect of nonperformance risk, the Corporation has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. While the Corporation has determined that the majority of the inputs used to value its derivative financial instruments fall within Level 2 of the fair value hierarchy, the credit valuation adjustments utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. The Corporation has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions as of March 31, 2019, and December 31, 2018, and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivative financial instruments. Therefore, the Corporation has determined that the fair value measures of its derivative financial instruments in their entirety are classified within Level 2 of the fair value hierarchy. Derivative Financial Instruments (Foreign Currency Exchange Forwards): The Corporation provides foreign currency exchange services to customers. In addition, the Corporation may enter into a foreign currency exchange forward to mitigate the exchange rate risk attached to the cash flows of a loan or as an offsetting contract to a forward entered into as a service to its customer. The valuation of the Corporation’s foreign currency exchange forwards is determined using quoted prices of foreign currency exchange forwards with similar characteristics, with consideration given to the nature of the quote and the relationship of recently evidenced market activity to the fair value estimate, and is classified in Level 2 of the fair value hierarchy. See Note 10 for additional disclosures regarding the Corporation’s foreign currency exchange forwards. Derivative Financial Instruments (Commodity Contracts): The Corporation enters into commodity contracts to manage commercial customers' exposure to fluctuating commodity prices, for which the Corporation simultaneously enters into offsetting derivative financial instruments (i.e., mirror commodity contracts) with third parties to manage its risk associated with these financial instruments. The valuation of the Corporation’s commodity contracts is determined using quoted prices of the underlying instruments, and also includes a nonperformance / credit risk component (credit valuation adjustment). See Note 10 for additional disclosures regarding the Corporation’s commodity contracts. The Corporation also incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative financial instruments for the effect of nonperformance risk, the Corporation has considered the impact of netting and any applicable credit enhancements, such as collateral postings. While the Corporation has determined that the majority of the inputs used to value its derivative financial instruments fall within Level 2 of the fair value hierarchy, the credit valuation adjustments utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. The Corporation has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions as of March 31, 2019, and December 31, 2018, and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivative financial instruments. Therefore, the Corporation has determined that the fair value measures of its derivative financial instruments in their entirety are classified within Level 2 of the fair value hierarchy. The table below presents the Corporation’s financial instruments measured at fair value on a recurring basis as of March 31, 2019 and December 31, 2018, aggregated by the level in the fair value hierarchy within which those measurements fall:
The table below presents a rollforward of the consolidated balance sheets amounts for the three months ended March 31, 2019 and the year ended December 31, 2018, for financial instruments measured on a recurring basis and classified within Level 3 of the fair value hierarchy:
For Level 3 assets and liabilities measured at fair value on a recurring basis as of March 31, 2019, the Corporation utilized the following valuation techniques and significant unobservable inputs: Derivative Financial Instruments (Mortgage Derivative — Interest Rate Lock Commitments to Originate Residential Mortgage Loans Held for Sale): The fair value is determined by the change in value from each loan’s rate lock date to the expected rate lock expiration date based on the underlying loan attributes, estimated closing ratios, and investor price matrix determined to be reasonably applicable to each loan commitment. The closing ratio calculation takes into consideration historical experience and loan-level attributes, particularly the change in the current interest rates from the time of initial rate lock. The closing ratio is periodically reviewed for reasonableness and reported to the Associated Mortgage Risk Management Committee. At March 31, 2019, the closing ratio was 85%. Derivative Financial Instruments (Mortgage Derivative — Forward Commitments to Sell Mortgage Loans): Mortgage derivatives include forward commitments to deliver closed-end residential mortgage loans into conforming Agency Mortgage-Backed Securities or conforming Cash Forward sales. The fair value of such instruments is determined by the difference of current market prices for such traded instruments or available from forward cash delivery commitments and the original traded price for such commitments. The Corporation also relies on an internal valuation model to estimate the fair value of its forward commitments to sell residential mortgage loans (i.e., an estimate of what the Corporation would receive or pay to terminate the forward delivery contract based on market prices for similar financial instruments), which includes matching specific terms and maturities of the forward commitments against applicable investor pricing available. While there are Level 2 and 3 inputs used in the valuation models, the Corporation has determined that the majority of the inputs significant in the valuation of both of the mortgage derivatives fall within Level 3 of the fair value hierarchy. See Note 10 for additional disclosure regarding the Corporation’s mortgage derivatives. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Following is a description of the valuation methodologies used for the Corporation’s more significant instruments measured on a nonrecurring basis at the lower of amortized cost or estimated fair value, including the general classification of such instruments pursuant to the valuation hierarchy. Commercial Loans Held for Sale: Commercial loans held for sale are carried at the lower of cost or estimated fair value. The estimated fair value is based on a discounted cash flow analysis, which the Corporation classifies as a Level 2 nonrecurring fair value measurement. Other Real Estate Owned: Certain other real estate owned, upon initial recognition, was re-measured and reported at fair value through a charge off to the allowance for loan losses based upon the estimated fair value of the other real estate owned, less estimated selling costs. The fair value of other real estate owned, upon initial recognition or subsequent impairment, was estimated using appraised values, which the Corporation classifies as a Level 2 nonrecurring fair value measurement. For Level 3 assets and liabilities measured at fair value on a nonrecurring basis as of March 31, 2019, the Corporation utilized the following valuation techniques and significant unobservable inputs: Impaired Loans: The Corporation considers a loan impaired when it is probable that the Corporation will be unable to collect all amounts due according to the original contractual terms of the note agreement, including both principal and interest. Management has determined that commercial and consumer loan relationships that have nonaccrual status or have had their terms restructured in a troubled debt restructuring meet this impaired loan definition. For individually evaluated impaired loans, the amount of impairment is based upon the present value of expected future cash flows discounted at the loan’s effective interest rate, the estimated fair value of the underlying collateral for collateral-dependent loans, or the estimated liquidity of the note. See Note 7 for additional information regarding the Corporation’s impaired loans. Mortgage Servicing Rights: MSR do not trade in an active, open market with readily observable prices. While sales of mortgage servicing rights do occur, the precise terms and conditions typically are not readily available to allow for a “quoted price for similar assets” comparison. Accordingly, the Corporation utilizes an independent valuation from a third party which uses a discounted cash flow model to estimate the fair value of its mortgage servicing rights. The valuation model incorporates prepayment assumptions to project mortgage servicing rights cash flows based on the current interest rate scenario, which is then discounted to estimate an expected fair value of the mortgage servicing rights. The valuation model considers portfolio characteristics of the underlying mortgages, contractually specified servicing fees, prepayment assumptions, discount rate assumptions, delinquency rates, late charges, other ancillary revenue, costs to service, and other economic factors. The Corporation periodically reviews and assesses the underlying inputs and assumptions used in the model. In addition, the Corporation compares its fair value estimates and assumptions to observable market data for mortgage servicing rights, where available, and to recent market activity and actual portfolio experience. Due to the nature of the valuation inputs, mortgage servicing rights are classified within Level 3 of the fair value hierarchy. The Corporation uses the amortization method (i.e., lower of amortized cost or estimated fair value measured on a nonrecurring basis), not fair value measurement accounting, for its mortgage servicing rights assets. The discounted cash flow analyses that generate expected market prices utilize the observable characteristics of the mortgage servicing rights portfolio, as well as certain unobservable valuation parameters. The significant unobservable inputs used in the fair value measurement of the Corporation’s mortgage servicing rights are the weighted average constant prepayment rate and weighted average discount rate. Significant increases (decreases) in any of those inputs in isolation could result in a significantly lower (higher) fair value measurement. These parameter assumptions fall within a range that the Corporation, in consultation with an independent third party, believes purchasers of servicing would apply to such portfolios sold into the current secondary servicing market. Discussions are held with members from Treasury and the Community, Consumer, and Business segment to reconcile the fair value estimates and the key assumptions used by the respective parties in arriving at those estimates. The Associated Mortgage Risk Management Committee is responsible for providing control over the valuation methodology and key assumptions. To assess the reasonableness of the fair value measurement, the Corporation also compares the fair value and constant prepayment rate to a value calculated by an independent third party on an annual basis. See Note 8 for additional disclosure regarding the Corporation’s mortgage servicing rights. The table below presents the Corporation’s assets measured at fair value on a nonrecurring basis, aggregated by the level in the fair value hierarchy within which those measurements fall:
(a) Represents individually evaluated impaired loans, net of the related allowance for loan losses. (b) Represents provision for credit losses on individually evaluated impaired loans. (c) If the fair value of the collateral exceeds the carrying amount of the asset, no charge off or adjustment is necessary, the asset is not considered to be carried at fair value, and is therefore not included in the table. Certain nonfinancial assets and nonfinancial liabilities measured at fair value on a nonrecurring basis include the fair value analysis in the second step of a goodwill impairment test, and intangible assets and other nonfinancial long-lived assets measured at fair value for impairment assessment. The Corporation's significant Level 3 measurements which employ unobservable inputs that are readily quantifiable pertain to mortgage servicing rights and impaired loans. The table below presents information about these inputs and further discussion is found above:
Fair Value of Financial Instruments The Corporation is required to disclose estimated fair values for its financial instruments. Fair value estimates are set forth below for the Corporation’s financial instruments:
(a) When the estimated fair value is less than the carrying value, the carrying value is reported as the fair value. (b) The carrying amount is a reasonable estimate of fair value for existing short-term funding. (c) The commitment on standby letters of credit was $256 million at both March 31, 2019 and December 31, 2018. See Note 12 for additional information on the standby letters of credit and for information on the fair value of lending-related commitments.
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Retirement Plans | Retirement Plans The Corporation has a noncontributory defined benefit retirement account plan, the RAP, covering substantially all employees who meet participation requirements. The benefits are based primarily on years of service and the employee’s compensation paid. Employees of acquired entities generally participate in the RAP after consummation of the business combinations. Any retirement plans of acquired entities are typically merged into the RAP after completion of the mergers, and credit is usually given to employees for years of service at the acquired institution for vesting and eligibility purposes. The Corporation also provides legacy healthcare access to a limited group of retired employees from a previous acquisition in the Postretirement Plan. There are no other active retiree healthcare plans. Bank Mutual was acquired on February 1, 2018. The Bank Mutual Pension Plan was merged into the RAP on December 31, 2018. Bank Mutual's Postretirement Plan was merged into the Corporation's Postretirement Plan during the first quarter of 2018. The reported figures in 2018 for both the Bank Mutual Pension Plan and the Corporation's Postretirement Plan only include two months of Bank Mutual expense due to the timing of the Bank Mutual acquisition. The components of net periodic pension cost and net periodic benefit cost for the RAP, Bank Mutual Pension Plan, and Postretirement Plan for the three months ended March 31, 2019 and 2018 were as follows:
The components of net periodic pension cost and net periodic benefit cost, other than the service cost component, are included in the line item "other" of noninterest expense in the consolidated statements of income. The Corporation’s funding policy is to pay at least the minimum amount required by federal law and regulations, with consideration given to the maximum funding amounts allowed. The Corporation regularly reviews the funding of its RAP. There were no contributions during the three months ended March 31, 2019 and 2018.
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Segment Reporting |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting | Segment Reporting The Corporation utilizes a risk-based internal profitability measurement system to provide strategic business unit reporting. The profitability measurement system is based on internal management methodologies designed to produce consistent results and reflect the underlying economics of the units. Certain strategic business units have been combined for segment information reporting purposes where the nature of the products and services, the type of customer and the distribution of those products and services are similar. The three reportable segments are Corporate and Commercial Specialty; Community, Consumer, and Business; and Risk Management and Shared Services. The financial information of the Corporation’s segments has been compiled utilizing the accounting policies described in the Corporation’s 2018 Annual Report on Form 10-K, with certain exceptions. The more significant of these exceptions are described herein. The reportable segment results are presented based on the Corporation's internal management accounting process. The management accounting policies and processes utilized in compiling segment financial information are highly subjective and, unlike financial accounting, are not based on authoritative guidance similar to U.S. generally accepted accounting principles. As a result, reported segments and the financial information of the reported segments are not necessarily comparable with similar information reported by other financial institutions. Furthermore, changes in management structure or allocation methodologies and procedures may result in changes in previously reported segment financial data. Additionally, the information presented is not indicative of how the segments would perform if they operated as independent entities. To determine financial performance of each segment, the Corporation allocates FTP assignments, the provision for credit losses, certain noninterest expenses, income tax, and equity to each segment. Allocation methodologies are subject to periodic adjustment as the internal management accounting system is revised, the interest rate environment evolves, and business or product lines within the segments change. Also, because the development and application of these methodologies is a dynamic process, the financial results presented may be periodically reviewed. The Corporation allocates net interest income using an internal FTP methodology that charges users of funds (assets) and credits providers of funds (liabilities, primarily deposits) based on the maturity, prepayment and / or repricing characteristics of the assets and liabilities. The net effect of this allocation is offset in the Risk Management and Shared Services segment to ensure consolidated totals reflect the Corporation's net interest income. The net FTP allocation is reflected as net intersegment income (expense) in the accompanying tables. A credit provision is allocated to segments based on the expected long-term annual net charge off rates attributable to the credit risk of loans managed by the segment during the period. In contrast, the level of the consolidated provision for credit losses is determined based on an incurred loss model using the methodologies described in the Corporation’s 2018 Annual Report on Form 10-K to assess the overall appropriateness of the allowance for loan losses. The net effect of the credit provision is recorded in Risk Management and Shared Services. Indirect expenses incurred by certain centralized support areas are allocated to segments based on actual usage (for example, volume measurements) and other criteria. Certain types of administrative expense and bank-wide expense accruals (including amortization of CDI and other intangible assets associated with acquisitions) are generally not allocated to segments. Income taxes are allocated to segments based on the Corporation’s estimated effective tax rate, with certain segments adjusted for any tax-exempt income or non-deductible expenses. Equity is allocated to the segments based on regulatory capital requirements and in proportion to an assessment of the inherent risks associated with the business of the segment (including interest, credit and operating risk). A brief description of each business segment is presented below. A more in-depth discussion of these segments can be found in the Segment Reporting footnote in the Corporation’s 2018 Annual Report on Form 10-K. The Corporate and Commercial Specialty segment serves a wide range of customers including larger businesses, developers, not-for-profits, municipalities, and financial institutions. The Community, Consumer, and Business segment serves individuals, as well as small and mid-sized businesses. The Risk Management and Shared Services segment includes key shared operational functions and also includes residual revenue and expenses, representing the difference between actual amounts incurred and the amounts allocated to operating segments, including interest rate risk residuals (FTP mismatches) and credit risk and provision residuals (long-term credit charge mismatches). In addition, the Risk Management and Shared Services segment includes certain unallocated expenses related to Bank Mutual's shared services and operations prior to system conversion in late June 2018. All acquisition related costs are included in the Risk Management and Shared Services segment. Information about the Corporation’s segments is presented below:
Information about the Corporation’s segments is presented below: (continued)
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Accumulated Other Comprehensive Income (Loss) |
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Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The following tables summarize the components of accumulated other comprehensive income (loss) at March 31, 2019 and 2018 respectively, including changes during the preceding three month period as well as any reclassifications out of accumulated other comprehensive income (loss):
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Revenue from Contracts with Customers |
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Revenue Recognition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contracts with Customers | Revenue from Contracts with Customers Revenue from contracts with customers is recognized when obligations under the terms of a contract with the Corporation's customer are satisfied. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. We do not have any material significant payment terms as payment is received at or shortly after the satisfaction of the performance obligation. The Corporation's disaggregated revenue by major source is presented below:
The Corporation's disaggregated revenue by major source is presented below: (continued)
The Corporation acquired Diversified in March 2018 and Anderson in June 2018 which resulted in increased insurance commissions and fees. Below is a listing of performance obligations for the Corporation's main revenue streams:
(a) Certain card-based fees are out-of-scope of Topic 606. (b) Trust and asset management fees and brokerage commissions and fees are included in wealth management fees. Arrangements with Multiple Performance Obligations The Corporation's contracts with customers may include multiple performance obligations. For such arrangements, we allocate revenue to each performance obligation based on its relative standalone selling price. We generally determine standalone selling prices based on the expected cost plus margin. Practical Expedients We do not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. Using the practical expedient, for contracts with a term of one year or less, the Corporation recognizes incremental costs of obtaining those contracts as an expense when incurred.
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases The Corporation has operating leases for retail and corporate offices, land, and equipment. These operating leases have terms of 1 year to 44 years, some of which include options to extend the lease term. An analysis of the lease options has been completed and any optional periods that the Corporation is reasonably likely to extend have been included in the capitalization. The discount rate used to capitalize the operating leases is the Corporation's FHLB borrowing rate on the date of lease commencement. When determining the rate to discount specific lease obligations, the repayment period and term are considered. Operating lease costs for the first three months of 2019 were $2.9 million with operating cash flows from operating leases of $2.8 million. The lease classifications on the consolidated balance sheets were as follows:
The weighted-average remaining lease term and weighted-average discount rate were as follows:
Lease payment obligations for each of the next five years and thereafter in addition to a reconciliation to the Corporation’s lease liability were as follows:
As of March 31, 2019, we have additional operating leases, primarily retail and corporate offices, that have not yet commenced of $19.3 million. These operating leases will commence between May 2019 and July 2023 with lease terms of 3 years to 10 years. Practical Expedients: The Corporation elected several practical expedients made available by the FASB. Due to materiality, the Corporation elected not to restate comparative periods upon adoption of the new guidance. In addition, the Corporation elected the package of practical expedients whereby the Corporation did not reassess (i) whether existing contracts are, or contain, leases and (ii) lease classification for existing leases. Lastly, the Corporation elected not to separate lease and nonlease components in determining the consideration in the lease agreement.
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Summary of Significant Accounting Policies (Policies) |
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |||||||||||||||||||||||||||||||||||||||||||
Leases | Leases | ||||||||||||||||||||||||||||||||||||||||||
New Accounting Pronouncements, Policy | New Accounting Pronouncements Adopted
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Earnings Per Common Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Calculations for basic and diluted earnings per common share | Presented below are the calculations for basic and diluted earnings per common share:
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Stock-Based Compensation (Tables) |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value assumptions of stock options | The following assumptions were used in estimating the fair value for options granted in the first three months of 2019 and full year 2018:
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Summary of company's stock option activities | A summary of the Corporation’s stock option activity for the three months ended March 31, 2019 is presented below:
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Summary of restricted stock awards activity (excluding salary shares) | The following table summarizes information about the Corporation’s restricted stock awards activity for the three months ended March 31, 2019:
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Investment Securities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment securities available for sale | The amortized cost and fair values of securities available for sale and held to maturity at March 31, 2019 were as follows:
The amortized cost and fair values of securities available for sale and held to maturity at December 31, 2018 were as follows:
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Investment securities held to maturity | The amortized cost and fair values of securities available for sale and held to maturity at March 31, 2019 were as follows:
The amortized cost and fair values of securities available for sale and held to maturity at December 31, 2018 were as follows:
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Amortized cost and fair values of investment securities by contractual maturity | The expected maturities of investment securities available for sale and held to maturity at March 31, 2019 are shown below:
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Realized gains and losses and proceeds from sale | The proceeds from the sale of investment securities for the three months ended March 31, 2019 and 2018 are shown below:
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Unrealized losses and fair value of available for sale and held to maturity securities, by investment category and time length | The following represents gross unrealized losses and the related fair value of investment securities available for sale and held to maturity, aggregated by investment category and length of time individual securities have been in a continuous unrealized loss position, at March 31, 2019:
For comparative purposes, the following represents gross unrealized losses and the related fair value of investment securities available for sale and held to maturity, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2018:
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Loans (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan composition | The period end loan composition was as follows:
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Commercial and consumer loans by credit quality indicator | The following table presents commercial and consumer loans by credit quality indicator at March 31, 2019:
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Summarized details of Loans | The following table presents loans by past due status at March 31, 2019:
(a) Of the total nonaccrual loans, $106 million, or 68%, were current with respect to payment at March 31, 2019. The following table presents loans by past due status at December 31, 2018:
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Summarized details of impaired Loans | The following table presents impaired loans individually evaluated under ASC Topic 310, excluding $5 million of purchased credit-impaired loans, at March 31, 2019:
(a) The net recorded investment (defined as recorded investment, net of the related allowance) of the impaired loans represented 74% of the unpaid principal balance at March 31, 2019. The following table presents impaired loans individually evaluated under ASC Topic 310, excluding $5 million of purchased credit-impaired loans, at December 31, 2018:
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Nonaccrual and performing restructured loans | The following table presents nonaccrual and performing restructured loans by loan portfolio:
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Summary of restructured loans |
(a) Represents post-modification outstanding recorded investment. (b) Represents pre-modification outstanding recorded investment.
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Troubled debt restructurings subsequent redefault | The following table provides the number of loans modified in a troubled debt restructuring during the previous twelve months which subsequently defaulted during the three months ended March 31, 2019 and 2018 and the recorded investment in these restructured loans as of March 31, 2019 and 2018:
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Changes in the allowance for loan losses by portfolio segment | The following table presents a summary of the changes in the allowance for loan losses by portfolio segment for the three months ended March 31, 2019:
(a) Loans acquired in business combinations and accounted for under ASC topic 310-30 "Receivables — Loans and Debt Securities Acquired with Deteriorated Credit Quality." For comparison purposes, a summary of the changes in the allowance for loan losses by portfolio segment for the year ended December 31, 2018, was as follows:
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Changes in the allowance for unfunded commitments | The following table presents a summary of the changes in the allowance for unfunded commitments:
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Changes In accretable yield for purchased credit impaired | Changes in the accretable yield for loans acquired and accounted for under ASC Topic 310-30 were as follows for the three months ended March 31, 2019 and for the year ended December 31, 2018:
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Goodwill and Other Intangible Assets (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of core deposit intangibles and other intangibles | For CDI and other intangibles, changes in the gross carrying amount, accumulated amortization, and net book value were as follows:
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Summary of changes in balance of mortgage servicing rights asset and mortgage servicing rights valuation allowance | A summary of changes in the balance of the mortgage servicing rights asset and the mortgage servicing rights valuation allowance is as follows:
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Summary of estimated future amortization expense | The projections of amortization expense are based on existing asset balances, the current interest rate environment, and prepayment speeds as of March 31, 2019. The actual amortization expense the Corporation recognizes in any given period may be significantly different depending upon acquisition or sale activities, changes in interest rates, prepayment speeds, market conditions, regulatory requirements, and events or circumstances that indicate the carrying amount of an asset may not be recoverable. The following table shows the estimated future amortization expense for amortizing intangible assets:
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Short and Long-Term Funding (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Breakdown of short & long-term debt balances | The following table presents the components of short-term funding (funding with original contractual maturities of one year or less), long-term funding (funding with original contractual maturities greater than one year), and FHLB advances (funding based on original contractual maturities):
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Remaining contractual maturity of securities sold under agreements to repurchase | The remaining contractual maturity of the securities sold under agreements to repurchase in the consolidated balance sheets as of March 31, 2019 and December 31, 2018 are presented in the following table:
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FHLB Maturity | The original contractual maturity or next put date of the Corporation's FHLB advances as of March 31, 2019 and December 31, 2018 are presented in the following table:
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Derivative and Hedging Activities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of Other derivative instruments not designated as hedging instruments | The table below identifies the consolidated balance sheets category and fair values of the Corporation’s derivative instruments:
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Cumulative basis adjustment for fair value hedges | The following table presents amounts that were recorded on the consolidated balance sheets related to cumulative basis adjustment for fair value hedges:
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Schedule of cash flow hedging instruments, statements of financial performance and financial position location | The table below identifies the effect of fair value hedge accounting on the Corporation's consolidated statements of income during the three months ended March 31, 2019 and twelve months ended December 31, 2018:
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Gain (loss) on derivative instruments not designated as hedging instruments | The table below identifies the effect of derivatives not designated as hedging instruments on the Corporation's consolidated statements of income during the three months ended March 31, 2019 and 2018:
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Balance Sheet Offsetting (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Offsetting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance sheet offsetting of derivative assets and liabilities | The following table presents the assets and liabilities subject to an enforceable master netting arrangement. The interest and commodity agreements the Corporation has with its commercial customers are not subject to an enforceable master netting arrangement and are therefore excluded from this table:
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Commitments, Off-Balance Sheet Arrangements, Legal Proceedings and Regulatory Matters (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of lending-related and other commitments | The following is a summary of lending-related commitments:
(a) These off-balance sheet financial instruments are exercisable at the market rate prevailing at the date the underlying transaction will be completed and, thus, are deemed to have no current fair value, or the fair value is based on fees currently charged to enter into similar agreements and is not material at March 31, 2019 or December 31, 2018. (b) Interest rate lock commitments to originate residential mortgage loans held for sale are considered derivative instruments and are disclosed in Note 10. (c) The Corporation has established a liability of $2 million at both March 31, 2019 and December 31, 2018, as an estimate of the fair value of these financial instruments.
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Summary of changes in the residential mortgage repurchase reserve | The following summarizes the changes in the mortgage repurchase reserve for the three months ended March 31, 2019 and for the year ended December 31, 2018:
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Fair Value Measurements (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and liabilities measured on recurring basis at fair value | The table below presents the Corporation’s financial instruments measured at fair value on a recurring basis as of March 31, 2019 and December 31, 2018, aggregated by the level in the fair value hierarchy within which those measurements fall:
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Assets and liabilities measured at fair value using significant unobservable inputs (level 3) | The table below presents a rollforward of the consolidated balance sheets amounts for the three months ended March 31, 2019 and the year ended December 31, 2018, for financial instruments measured on a recurring basis and classified within Level 3 of the fair value hierarchy:
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Assets and liabilities measured on nonrecurring basis at fair value | The table below presents the Corporation’s assets measured at fair value on a nonrecurring basis, aggregated by the level in the fair value hierarchy within which those measurements fall:
(a) Represents individually evaluated impaired loans, net of the related allowance for loan losses. (b) Represents provision for credit losses on individually evaluated impaired loans. (c) If the fair value of the collateral exceeds the carrying amount of the asset, no charge off or adjustment is necessary, the asset is not considered to be carried at fair value, and is therefore not included in the table. |
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Schedule of assumptions for fair value as of balance sheet date of assets or liabilities that relate to transferor's continuing involvement | The table below presents information about these inputs and further discussion is found above:
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Estimated fair values of financial instruments | Fair value estimates are set forth below for the Corporation’s financial instruments:
(a) When the estimated fair value is less than the carrying value, the carrying value is reported as the fair value. (b) The carrying amount is a reasonable estimate of fair value for existing short-term funding. (c) The commitment on standby letters of credit was $256 million at both March 31, 2019 and December 31, 2018. See Note 12 for additional information on the standby letters of credit and for information on the fair value of lending-related commitments.
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Retirement Plans (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net period benefit cost for the pension and postretirement plans | The components of net periodic pension cost and net periodic benefit cost for the RAP, Bank Mutual Pension Plan, and Postretirement Plan for the three months ended March 31, 2019 and 2018 were as follows:
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Segment Reporting (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selected segment information | Information about the Corporation’s segments is presented below:
Information about the Corporation’s segments is presented below: (continued)
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Accumulated Other Comprehensive Income (Loss) (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of activity in accumulated other comprehensive income (loss) | The following tables summarize the components of accumulated other comprehensive income (loss) at March 31, 2019 and 2018 respectively, including changes during the preceding three month period as well as any reclassifications out of accumulated other comprehensive income (loss):
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Revenue from Contracts with Customers (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of revenue by Major source | The Corporation's disaggregated revenue by major source is presented below:
The Corporation's disaggregated revenue by major source is presented below: (continued)
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Revenue recognition 606 | Below is a listing of performance obligations for the Corporation's main revenue streams:
(a) Certain card-based fees are out-of-scope of Topic 606. (b) Trust and asset management fees and brokerage commissions and fees are included in wealth management fees.
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Leases (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Components of lease expense | The lease classifications on the consolidated balance sheets were as follows:
|
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Operating lease information | The weighted-average remaining lease term and weighted-average discount rate were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of operating lease liabilities | :
|
Acquisitions (Details Textuals) - Huntington National Bank [Domain] $ in Millions |
Dec. 11, 2018
USD ($)
branch
|
---|---|
Business Acquisition [Line Items] | |
Estimate Acquired Deposits | $ 850 |
Estimate Acquired Loans | $ 134 |
Estimate Acquired Net Branches | branch | 14 |
Summary of Significant Accounting Policies textuals (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Jan. 01, 2019 |
---|---|---|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease right-of-use asset | $ 49,372 | $ 52,000 |
Operating lease liability | $ 53,516 | $ 56,000 |
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Calculations for basic and diluted earnings per common share | ||
Net income | $ 86,686 | $ 69,456 |
Preferred stock dividends | (3,801) | (2,339) |
Net income available to common equity | 82,885 | 67,117 |
Common shareholder dividends | (28,080) | (25,572) |
Unvested share-based payment awards | (103) | (138) |
Undistributed earnings | 54,702 | 41,407 |
Undistributed earnings allocated to common shareholders | 54,410 | 41,225 |
Undistributed earnings allocated to unvested share-based payment awards | 292 | 182 |
Undistributed earnings | 54,702 | 41,407 |
Basic | ||
Distributed earnings to common shareholders | 28,080 | 25,572 |
Undistributed earnings allocated to common shareholders | 54,410 | 41,225 |
Total common shareholders earnings, basic | 82,490 | 66,797 |
Diluted | ||
Distributed earnings to common shareholders | 28,080 | 25,572 |
Undistributed earnings allocated to common shareholders | 54,410 | 41,225 |
Total common shareholders earnings, diluted | $ 82,490 | $ 66,797 |
Weighted average common shares outstanding | 163,928 | 163,520 |
Effect of dilutive common stock awards | 1,505 | 2,038 |
Effect of dilutive common stock warrants | 0 | 874 |
Diluted weighted average common shares outstanding | 165,433 | 166,432 |
Basic earnings per common share | $ 0.50 | $ 0.41 |
Diluted earnings per common share | $ 0.50 | $ 0.40 |
Earnings Per Common Share (Details Textuals) - shares shares in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Approximate anti-dilutive stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3 | 1 |
Stock-Based Compensation Fair Value Assumptions of Stock Options (Details) - $ / shares |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2019 |
Dec. 31, 2018 |
|
Retirement Benefits [Abstract] | ||
Dividend yield | 3.30% | 2.50% |
Risk-free interest rate | 2.60% | 2.60% |
Weighted average expected volatility | 24.00% | 22.00% |
Weighted average expected life | 5 years 9 months | 5 years 9 months |
Weighted average per share fair value of options | $ 4.00 | $ 4.47 |
Stock-Based Compensation, Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2019 |
Dec. 31, 2018 |
|
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Stock Options Shares Outstanding, Beginning balance (in shares) | 5,281 | |
Granted | 1,050 | |
Exercised | (355) | |
Forfeited or expired | (72) | |
Stock Options Shares Outstanding, Ending balance (in shares) | 5,905 | 5,281 |
Options exercisable (in shares) | 3,691 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Stock Options Outstanding, Weighted Average Exercise Price, Beginning balance (in usd per share) | $ 19.09 | |
Granted, Weighted Average Exercise Price | 22.77 | |
Exercised, Weighted Average Exercise Price | 15.61 | |
Forfeited or expired, Weighted Average Exercise Price | 23.46 | |
Stock Options Outstanding, Weighted Average Exercise Price, Ending balance (in usd per share) | 19.91 | $ 19.09 |
Options Exercisable, Weighted Average Exercise Price (in usd per share) | $ 18.01 | |
Stock Options Outstanding, Weighted Average Remaining Contractual Term | 6 years 9 months 25 days | 6 years 2 months 4 days |
Options exercisable, Weighted Average Remaining Contractual Term | 5 years 6 months 3 days | |
Stock Options Outstanding, Aggregate Intrinsic Value | $ 15,870 | $ 12,392 |
Options exercisable, Aggregate Intrinsic Value | $ 14,953 |
Stock-Based Compensation, Restricted Stock Activity (Details) shares in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2019
$ / shares
shares
| |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Outstanding Shares, Beginning balance (in shares) | shares | 1,993 |
Granted | shares | 1,153 |
Vested | shares | (618) |
Forfeited | shares | (18) |
Outstanding Shares, Ending balance (in shares) | shares | 2,510 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Outstanding, Weighted Average Grant Date Fair Value, Beginning balance (in usd per share) | $ / shares | $ 21.92 |
Granted, Weighted Average Grant Date Fair Value | $ / shares | 22.21 |
Vested, Weighted Average Grant Date Fair Value | $ / shares | 20.32 |
Forfeited, Weighted Average Grant Date Fair Value | $ / shares | 23.67 |
Outstanding Weighted Average Grant Date Fair Value, Ending balance (in usd per share) | $ / shares | $ 22.43 |
Stock-Based Compensation (Details Textuals) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Share-based Compensation Arrangement by Share-based Payment Award | ||
Intrinsic value of stock options exercised | $ 2 | $ 5 |
Total fair value of vested stock options | $ 4 | $ 3 |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 0.00% | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 150.00% | |
Service-based Restricted Stock Award | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | 4 years |
Performance-based Restricted Stock Award | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | 3 years |
Employee Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Recognized compensation expense for vesting of stock options | $ 1 | $ 1 |
Recognized compensation expense for accelerated vesting of stock options | less than $1 million | |
Unvested share-based payment awards | $ 7 | |
Remaining requisite service periods, extend through | first quarter 2023 | |
Restricted Stock Award | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Recognized compensation expense for vesting of stock options | $ 8 | $ 3 |
Unvested share-based payment awards | $ 33 | |
Remaining requisite service periods, extend through | first quarter 2023 | |
Recognized compensation expense for accelerated vesting of restricted stock options | $ 2 |
Investment Securities, AFS and HTM Securities Amortized Costs and Fair Values (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Investment securities available for sale: | ||
Amortized Cost | $ 3,895,540 | $ 4,041,902 |
Gross Unrealized Gains | 4,013 | 3,649 |
Gross Unrealized Losses | (70,164) | (98,610) |
Fair Value | 3,829,388 | 3,946,941 |
Debt Securities, Held-to-maturity | ||
Held to Maturity, Amortized Cost | 2,846,689 | 2,740,511 |
Held-to-maturity, Gross Unrealized Gains | 48,291 | 17,593 |
Held-to-maturity, Gross Unrealized Loss | (26,109) | (47,835) |
Held-to-maturity, Fair Value | 2,868,870 | 2,710,271 |
US Treasury Securities | ||
Investment securities available for sale: | ||
Amortized Cost | 1,000 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (1) | |
Fair Value | 999 | |
Debt Securities, Held-to-maturity | ||
Held to Maturity, Amortized Cost | 999 | |
Held-to-maturity, Gross Unrealized Gains | 8 | |
Held-to-maturity, Gross Unrealized Loss | 0 | |
Held-to-maturity, Fair Value | 1,007 | |
Obligations of state and political subdivisions (municipal securities) | ||
Debt Securities, Held-to-maturity | ||
Held to Maturity, Amortized Cost | 1,922,792 | 1,790,683 |
Held-to-maturity, Gross Unrealized Gains | 39,043 | 8,255 |
Held-to-maturity, Gross Unrealized Loss | (1,349) | (15,279) |
Held-to-maturity, Fair Value | 1,960,487 | 1,783,659 |
Residential Related Securities | FNMA/FHLMC | ||
Investment securities available for sale: | ||
Amortized Cost | 242,921 | 296,296 |
Gross Unrealized Gains | 1,607 | 2,466 |
Gross Unrealized Losses | (2,453) | (3,510) |
Fair Value | 242,074 | 295,252 |
Debt Securities, Held-to-maturity | ||
Held to Maturity, Amortized Cost | 91,003 | 92,788 |
Held-to-maturity, Gross Unrealized Gains | 413 | 169 |
Held-to-maturity, Gross Unrealized Loss | (601) | (1,795) |
Held-to-maturity, Fair Value | 90,815 | 91,162 |
Residential Related Securities | GNMA | ||
Investment securities available for sale: | ||
Amortized Cost | 2,060,377 | 2,169,943 |
Gross Unrealized Gains | 727 | 473 |
Gross Unrealized Losses | (23,004) | (41,885) |
Fair Value | 2,038,100 | 2,128,531 |
Debt Securities, Held-to-maturity | ||
Held to Maturity, Amortized Cost | 339,742 | 351,606 |
Held-to-maturity, Gross Unrealized Gains | 1,714 | 1,611 |
Held-to-maturity, Gross Unrealized Loss | (3,314) | (8,181) |
Held-to-maturity, Fair Value | 338,141 | 345,035 |
Private-label | ||
Investment securities available for sale: | ||
Amortized Cost | 877 | 1,007 |
Gross Unrealized Gains | 1 | 0 |
Gross Unrealized Losses | 0 | (4) |
Fair Value | 878 | 1,003 |
Debt Securities, Held-to-maturity | ||
Held to Maturity, Amortized Cost | 0 | |
Held-to-maturity, Fair Value | 0 | |
Commercial mortgage-related securities | FNMA/FHLMC | ||
Investment securities available for sale: | ||
Amortized Cost | 20,309 | |
Gross Unrealized Gains | 346 | |
Gross Unrealized Losses | 0 | |
Fair Value | 20,655 | |
Debt Securities, Held-to-maturity | ||
Held to Maturity, Amortized Cost | 0 | |
Held-to-maturity, Fair Value | 0 | |
Commercial mortgage-related securities | GNMA | ||
Investment securities available for sale: | ||
Amortized Cost | 1,291,892 | 1,273,309 |
Gross Unrealized Gains | 402 | 0 |
Gross Unrealized Losses | (44,512) | (52,512) |
Fair Value | 1,247,782 | 1,220,797 |
Debt Securities, Held-to-maturity | ||
Held to Maturity, Amortized Cost | 492,154 | 505,434 |
Held-to-maturity, Gross Unrealized Gains | 7,112 | 7,559 |
Held-to-maturity, Gross Unrealized Loss | (20,846) | (22,579) |
Held-to-maturity, Fair Value | 478,421 | 490,414 |
FFELP asset backed securities | ||
Investment securities available for sale: | ||
Amortized Cost | 276,164 | 297,347 |
Gross Unrealized Gains | 931 | 711 |
Gross Unrealized Losses | (195) | (698) |
Fair Value | 276,899 | 297,360 |
Debt Securities, Held-to-maturity | ||
Held to Maturity, Amortized Cost | 0 | |
Held-to-maturity, Fair Value | 0 | |
Other Debt securities | ||
Investment securities available for sale: | ||
Amortized Cost | 3,000 | 3,000 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 3,000 | 3,000 |
Investment Securities Class | ||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | ||
Pledged Financial Instruments, Not Separately Reported, Securities | $ 3,600,000 | $ 3,000,000 |
Investment Securities, AFS and HTM Contractual Maturities (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Amortized Cost | ||
Available for Sale, Due in one year or less | $ 1,000 | |
Available for Sale, Due after one year through five years | 2,000 | |
Available for Sale, Due after five years through ten years | 0 | |
Available for Sale, Due after ten years | 0 | |
Available for Sale, Total debt securities | 3,000 | |
Available for Sale, amortized cost | 3,895,540 | $ 4,041,902 |
Fair Value | ||
Available for Sale, Due in one year or less | 1,000 | |
Available for Sale, Due after one year through five years | 2,000 | |
Available for Sale, Due after five years through ten years | 0 | |
Available for Sale, Due after ten years | 0 | |
Available for Sale, Total debt securities | 3,000 | |
Investment securities available for sale, at fair value | $ 3,829,388 | 3,946,941 |
Available for Sale, Ratio of Fair Value to Amortized Cost | 98.30% | |
Amortized Cost | ||
Held to Maturity, Due in one year or less | $ 46,085 | |
Held to Maturity, Due after one year through five years | 190,810 | |
Held to Maturity, Due after five years through ten years | 444,710 | |
Held to Maturity, Due after ten years | 1,242,186 | |
Held to Maturity, Total Debt Securities | 1,923,790 | |
Held to Maturity, Amortized Cost | 2,846,689 | 2,740,511 |
Fair Value | ||
Held to Maturity, Due in one year or less | 46,262 | |
Held to Maturity, Due after one year through five years | 191,172 | |
Held to Maturity, Due after five years through ten years | 450,417 | |
Held to Maturity, Due after ten years | 1,273,642 | |
Held to Maturity, Securities, Debt Securities | 1,961,493 | |
Held to Maturity, Total debt securities at fair value | $ 2,868,870 | 2,710,271 |
Held to Maturity, Ratio of Fair Value to Amortized Cost | 100.80% | |
Private-label | ||
Amortized Cost | ||
Available for Sale, amortized cost | $ 877 | 1,007 |
Fair Value | ||
Investment securities available for sale, at fair value | 878 | 1,003 |
Amortized Cost | ||
Held to Maturity, Amortized Cost | 0 | |
Fair Value | ||
Held to Maturity, Total debt securities at fair value | 0 | |
FFELP asset backed securities | ||
Amortized Cost | ||
Available for Sale, amortized cost | 276,164 | 297,347 |
Fair Value | ||
Investment securities available for sale, at fair value | 276,899 | 297,360 |
Amortized Cost | ||
Held to Maturity, Amortized Cost | 0 | |
Fair Value | ||
Held to Maturity, Total debt securities at fair value | 0 | |
FNMA/FHLMC | Residential Related Securities | ||
Amortized Cost | ||
Available for Sale, amortized cost | 242,921 | 296,296 |
Fair Value | ||
Investment securities available for sale, at fair value | 242,074 | 295,252 |
Amortized Cost | ||
Held to Maturity, Amortized Cost | 91,003 | 92,788 |
Fair Value | ||
Held to Maturity, Total debt securities at fair value | 90,815 | 91,162 |
FNMA/FHLMC | Commercial mortgage-related securities | ||
Amortized Cost | ||
Available for Sale, amortized cost | 20,309 | |
Fair Value | ||
Investment securities available for sale, at fair value | 20,655 | |
Amortized Cost | ||
Held to Maturity, Amortized Cost | 0 | |
Fair Value | ||
Held to Maturity, Total debt securities at fair value | 0 | |
GNMA | Residential Related Securities | ||
Amortized Cost | ||
Available for Sale, amortized cost | 2,060,377 | 2,169,943 |
Fair Value | ||
Investment securities available for sale, at fair value | 2,038,100 | 2,128,531 |
Amortized Cost | ||
Held to Maturity, Amortized Cost | 339,742 | 351,606 |
Fair Value | ||
Held to Maturity, Total debt securities at fair value | 338,141 | 345,035 |
GNMA | Commercial mortgage-related securities | ||
Amortized Cost | ||
Available for Sale, amortized cost | 1,291,892 | 1,273,309 |
Fair Value | ||
Investment securities available for sale, at fair value | 1,247,782 | 1,220,797 |
Amortized Cost | ||
Held to Maturity, Amortized Cost | 492,154 | 505,434 |
Fair Value | ||
Held to Maturity, Total debt securities at fair value | $ 478,421 | $ 490,414 |
Investment Securities Gain/Loss Sale of Securities (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Investments, Debt and Equity Securities [Abstract] | ||
Gross gains on available for sale securities | $ 1,680 | $ 0 |
Gross gains on held to maturity securities | 0 | 0 |
Total gains | 1,680 | 0 |
Gross losses on available for sale securities | 0 | 0 |
Gross losses on held to maturity securities | 0 | 0 |
Total losses | 0 | 0 |
Investment securities gains (losses), net | 1,680 | 0 |
Proceeds from sales of investment securities | $ 131,122 | $ 452,867 |
Investment Securities, AFS and HTM Securities Gross Unrealized Losses (Details) $ in Thousands |
Mar. 31, 2019
USD ($)
security
|
Dec. 31, 2018
USD ($)
security
|
---|---|---|
Unrealized losses and fair value of available for sale securities, by investment category and time length | ||
Unrealized losses on available for sale securities, less than 12 months | $ (1,959) | $ (5,262) |
Unrealized losses on available for sale securities, 12 months or more | (68,205) | (93,347) |
Total unrealized losses on available for sale securities | (70,164) | (98,610) |
Fair value of unrealized losses on available for sale securities, less than 12 months | 245,744 | 613,612 |
Fair value of unrealized losses on available for sale securities, 12 months or more | 3,030,042 | 3,009,417 |
Total fair value of unrealized losses on available for sale securities | $ 3,275,786 | $ 3,623,028 |
Available for sale, number of securities, less than 12 months | security | 28 | 41 |
Available for sale, number of securities, 12 months or more | security | 182 | 190 |
Held-to-maturity Securities Continuous Unrealized Loss Position | ||
Unrealized losses on held to maturity securities, less than 12 months | $ (16) | $ (4,053) |
Unrealized losses on held to maturity securities, 12 months or more | (26,093) | (43,780) |
Total unrealized losses on held to maturity securities | $ (26,109) | $ (47,835) |
Held-to-maturity, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, 12 Months or Longer | security | 303 | 865 |
Fair value of unrealized losses on held to maturity securities, less than 12 months | $ 7,264 | $ 390,929 |
Fair value of unrealized losses on held to maturity securities, 12 months or more | 950,613 | 1,349,063 |
Total fair value of unrealized losses on held to maturity securities | $ 957,877 | $ 1,739,992 |
Held-to-maturity, Securities In Unrealized Loss Positions Qualitative Disclosure Number Of Positions, less than 12 Months | security | 8 | 298 |
US Treasury Securities | ||
Unrealized losses and fair value of available for sale securities, by investment category and time length | ||
Unrealized losses on available for sale securities, less than 12 months | $ 0 | |
Unrealized losses on available for sale securities, 12 months or more | (1) | |
Total unrealized losses on available for sale securities | (1) | |
Fair value of unrealized losses on available for sale securities, less than 12 months | 0 | |
Fair value of unrealized losses on available for sale securities, 12 months or more | 999 | |
Total fair value of unrealized losses on available for sale securities | $ 999 | |
Available for sale, number of securities, less than 12 months | security | 0 | |
Available for sale, number of securities, 12 months or more | security | 1 | |
Obligations of state and political subdivisions (municipal securities) | ||
Held-to-maturity Securities Continuous Unrealized Loss Position | ||
Unrealized losses on held to maturity securities, less than 12 months | $ (13) | $ (2,860) |
Unrealized losses on held to maturity securities, 12 months or more | (1,336) | (12,419) |
Total unrealized losses on held to maturity securities | (1,349) | (15,279) |
Fair value of unrealized losses on held to maturity securities, less than 12 months | 5,599 | 313,212 |
Fair value of unrealized losses on held to maturity securities, 12 months or more | 136,727 | 509,374 |
Total fair value of unrealized losses on held to maturity securities | $ 142,326 | $ 822,586 |
Obligations of state and political subdivisions (municipal securities) | Held to maturity, number of securities, less than 12 months | ||
Held-to-maturity Securities Continuous Unrealized Loss Position | ||
Number of held to maturity securities in a continuous unrealized loss position | security | 7 | 272 |
Obligations of state and political subdivisions (municipal securities) | Held to maturity, number of securities, 12 months or more | ||
Held-to-maturity Securities Continuous Unrealized Loss Position | ||
Number of held to maturity securities in a continuous unrealized loss position | security | 193 | 752 |
Private-label | ||
Unrealized losses and fair value of available for sale securities, by investment category and time length | ||
Unrealized losses on available for sale securities, less than 12 months | $ (4) | |
Unrealized losses on available for sale securities, 12 months or more | 0 | |
Total unrealized losses on available for sale securities | (4) | |
Fair value of unrealized losses on available for sale securities, less than 12 months | 1,003 | |
Fair value of unrealized losses on available for sale securities, 12 months or more | 0 | |
Total fair value of unrealized losses on available for sale securities | $ 1,003 | |
Available for sale, number of securities, less than 12 months | security | 1 | |
Available for sale, number of securities, 12 months or more | security | 0 | |
FFELP asset backed securities | ||
Unrealized losses and fair value of available for sale securities, by investment category and time length | ||
Unrealized losses on available for sale securities, less than 12 months | $ (195) | $ (698) |
Unrealized losses on available for sale securities, 12 months or more | 0 | 0 |
Total unrealized losses on available for sale securities | (195) | (698) |
Fair value of unrealized losses on available for sale securities, less than 12 months | 128,657 | 142,432 |
Fair value of unrealized losses on available for sale securities, 12 months or more | 0 | 0 |
Total fair value of unrealized losses on available for sale securities | $ 128,657 | $ 142,432 |
Available for sale, number of securities, less than 12 months | security | 10 | 13 |
Available for sale, number of securities, 12 months or more | security | 0 | 0 |
FNMA/FHLMC | Residential Related Securities | ||
Unrealized losses and fair value of available for sale securities, by investment category and time length | ||
Unrealized losses on available for sale securities, less than 12 months | $ (5) | $ (31) |
Unrealized losses on available for sale securities, 12 months or more | (2,448) | (3,479) |
Total unrealized losses on available for sale securities | (2,453) | (3,510) |
Fair value of unrealized losses on available for sale securities, less than 12 months | 6,468 | 17,993 |
Fair value of unrealized losses on available for sale securities, 12 months or more | 172,018 | 189,405 |
Total fair value of unrealized losses on available for sale securities | $ 178,486 | $ 207,398 |
Available for sale, number of securities, less than 12 months | security | 9 | 15 |
Available for sale, number of securities, 12 months or more | security | 17 | 17 |
Held-to-maturity Securities Continuous Unrealized Loss Position | ||
Unrealized losses on held to maturity securities, less than 12 months | $ (3) | $ (780) |
Unrealized losses on held to maturity securities, 12 months or more | (598) | (1,015) |
Total unrealized losses on held to maturity securities | (601) | (1,795) |
Fair value of unrealized losses on held to maturity securities, less than 12 months | 1,664 | 57,896 |
Fair value of unrealized losses on held to maturity securities, 12 months or more | 51,691 | 28,888 |
Total fair value of unrealized losses on held to maturity securities | $ 53,356 | $ 86,784 |
FNMA/FHLMC | Residential Related Securities | Held to maturity, number of securities, less than 12 months | ||
Held-to-maturity Securities Continuous Unrealized Loss Position | ||
Number of held to maturity securities in a continuous unrealized loss position | security | 1 | 13 |
FNMA/FHLMC | Residential Related Securities | Held to maturity, number of securities, 12 months or more | ||
Held-to-maturity Securities Continuous Unrealized Loss Position | ||
Number of held to maturity securities in a continuous unrealized loss position | security | 22 | 22 |
GNMA | Residential Related Securities | ||
Unrealized losses and fair value of available for sale securities, by investment category and time length | ||
Unrealized losses on available for sale securities, less than 12 months | $ (1,760) | $ (4,529) |
Unrealized losses on available for sale securities, 12 months or more | (21,245) | (37,355) |
Total unrealized losses on available for sale securities | (23,004) | (41,885) |
Fair value of unrealized losses on available for sale securities, less than 12 months | 110,619 | 452,183 |
Fair value of unrealized losses on available for sale securities, 12 months or more | 1,660,128 | 1,598,159 |
Total fair value of unrealized losses on available for sale securities | $ 1,770,747 | $ 2,050,342 |
Available for sale, number of securities, less than 12 months | security | 9 | 12 |
Available for sale, number of securities, 12 months or more | security | 73 | 79 |
Held-to-maturity Securities Continuous Unrealized Loss Position | ||
Unrealized losses on held to maturity securities, less than 12 months | $ 0 | $ (414) |
Unrealized losses on held to maturity securities, 12 months or more | (3,314) | (7,767) |
Total unrealized losses on held to maturity securities | (3,314) | (8,181) |
Fair value of unrealized losses on held to maturity securities, less than 12 months | 0 | 19,822 |
Fair value of unrealized losses on held to maturity securities, 12 months or more | 283,774 | 320,387 |
Total fair value of unrealized losses on held to maturity securities | $ 283,774 | $ 340,209 |
GNMA | Residential Related Securities | Held to maturity, number of securities, less than 12 months | ||
Held-to-maturity Securities Continuous Unrealized Loss Position | ||
Number of held to maturity securities in a continuous unrealized loss position | security | 0 | 13 |
GNMA | Residential Related Securities | Held to maturity, number of securities, 12 months or more | ||
Held-to-maturity Securities Continuous Unrealized Loss Position | ||
Number of held to maturity securities in a continuous unrealized loss position | security | 63 | 66 |
GNMA | Commercial mortgage-related securities | ||
Unrealized losses and fair value of available for sale securities, by investment category and time length | ||
Unrealized losses on available for sale securities, less than 12 months | $ 0 | $ 0 |
Unrealized losses on available for sale securities, 12 months or more | (44,512) | (52,512) |
Total unrealized losses on available for sale securities | (44,512) | (52,512) |
Fair value of unrealized losses on available for sale securities, less than 12 months | 0 | 0 |
Fair value of unrealized losses on available for sale securities, 12 months or more | 1,197,896 | 1,220,854 |
Total fair value of unrealized losses on available for sale securities | $ 1,197,896 | $ 1,220,854 |
Available for sale, number of securities, less than 12 months | security | 0 | 0 |
Available for sale, number of securities, 12 months or more | security | 92 | 93 |
Held-to-maturity Securities Continuous Unrealized Loss Position | ||
Unrealized losses on held to maturity securities, less than 12 months | $ 0 | $ 0 |
Unrealized losses on held to maturity securities, 12 months or more | (20,846) | (22,579) |
Total unrealized losses on held to maturity securities | (20,846) | (22,579) |
Fair value of unrealized losses on held to maturity securities, less than 12 months | 0 | 0 |
Fair value of unrealized losses on held to maturity securities, 12 months or more | 478,421 | 490,414 |
Total fair value of unrealized losses on held to maturity securities | $ 478,421 | $ 490,414 |
GNMA | Commercial mortgage-related securities | Held to maturity, number of securities, less than 12 months | ||
Held-to-maturity Securities Continuous Unrealized Loss Position | ||
Number of held to maturity securities in a continuous unrealized loss position | security | 0 | 0 |
GNMA | Commercial mortgage-related securities | Held to maturity, number of securities, 12 months or more | ||
Held-to-maturity Securities Continuous Unrealized Loss Position | ||
Number of held to maturity securities in a continuous unrealized loss position | security | 25 | 25 |
Investment Securities (Details Textual) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Feb. 01, 2018 |
Mar. 31, 2019 |
Dec. 31, 2018 |
|
Investment Securities (Textuals) [Abstract] | |||
Available-for-sale Securities, Equity Securities | $ 2,000 | $ 2,000 | |
Visa Restricted Stock Owned | 119 | ||
Federal Home Loan Bank Stock | $ 139,000 | 173,000 | |
Federal Reserve Bank Stock | 77,000 | 77,000 | |
Bank Mutual | |||
Business Acquisition [Line Items] | |||
Debt Securities, Available-for-sale, Sold at Par Value | $ 453,000 | ||
Investment Securities Class | |||
Investment Securities (Textuals) [Abstract] | |||
Pledged Financial Instruments, Not Separately Reported, Securities | $ 3,600,000 | $ 3,000,000 |
Loans Composition (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | $ 23,148,359 | $ 22,940,429 |
Commercial and industrial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | 7,587,597 | 7,398,044 |
Commercial real estate — owner occupied | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | 932,393 | 920,443 |
Commercial and business lending | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | 8,519,990 | 8,318,487 |
Commercial real estate — investor | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | 3,809,253 | 3,751,554 |
Real estate construction | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | 1,273,782 | 1,335,031 |
Commercial real estate lending | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | 5,083,035 | 5,086,585 |
Total commercial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | 13,603,025 | 13,405,072 |
Residential mortgage | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | 8,323,846 | 8,277,712 |
Home equity | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | 868,886 | 894,473 |
Other consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | 352,602 | 363,171 |
Total consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | 9,545,333 | 9,535,357 |
Bank Mutual | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Purchased credit-impaired loans | $ 5,000 | $ 5,000 |
Loans Credit Quality Indicator (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 23,148,359 | $ 22,940,429 |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 22,662,534 | 22,438,605 |
Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 88,912 | 123,988 |
Potential Problem | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 241,357 | 249,935 |
Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 155,556 | 127,901 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 7,587,597 | 7,398,044 |
Commercial and industrial | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 7,371,790 | 7,162,370 |
Commercial and industrial | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 30,657 | 78,075 |
Commercial and industrial | Potential Problem | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 111,772 | 116,578 |
Commercial and industrial | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 73,379 | 41,021 |
Commercial real estate — owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 932,393 | 920,443 |
Commercial real estate — owner occupied | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 874,152 | 854,265 |
Commercial real estate — owner occupied | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 8,422 | 6,257 |
Commercial real estate — owner occupied | Potential Problem | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 48,929 | 55,964 |
Commercial real estate — owner occupied | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 890 | 3,957 |
Commercial and business lending | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 8,519,990 | 8,318,487 |
Commercial and business lending | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 8,245,942 | 8,016,635 |
Commercial and business lending | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 39,079 | 84,332 |
Commercial and business lending | Potential Problem | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 160,701 | 172,542 |
Commercial and business lending | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 74,269 | 44,978 |
Commercial real estate — investor | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 3,809,253 | 3,751,554 |
Commercial real estate — investor | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 3,698,679 | 3,653,642 |
Commercial real estate — investor | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 39,184 | 28,479 |
Commercial real estate — investor | Potential Problem | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 70,613 | 67,481 |
Commercial real estate — investor | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 776 | 1,952 |
Real estate construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,273,782 | 1,335,031 |
Real estate construction | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,259,661 | 1,321,447 |
Real estate construction | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 8,782 | 8,771 |
Real estate construction | Potential Problem | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 4,600 | 3,834 |
Real estate construction | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 739 | 979 |
Commercial real estate lending | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 5,083,035 | 5,086,585 |
Commercial real estate lending | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 4,958,341 | 4,975,089 |
Commercial real estate lending | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 47,966 | 37,249 |
Commercial real estate lending | Potential Problem | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 75,213 | 71,315 |
Commercial real estate lending | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,516 | 2,931 |
Total commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 13,603,025 | 13,405,072 |
Total commercial | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 13,204,282 | 12,991,724 |
Total commercial | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 87,045 | 121,582 |
Total commercial | Potential Problem | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 235,914 | 243,856 |
Total commercial | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 75,784 | 47,909 |
Residential mortgage | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 8,323,846 | 8,277,712 |
Residential mortgage | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 8,250,915 | 8,203,729 |
Residential mortgage | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 256 | 434 |
Residential mortgage | Potential Problem | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 5,351 | 5,975 |
Residential mortgage | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 67,323 | 67,574 |
Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 868,886 | 894,473 |
Home equity | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 855,603 | 880,808 |
Home equity | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 891 | 1,223 |
Home equity | Potential Problem | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 91 | 103 |
Home equity | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 12,300 | 12,339 |
Other consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 352,602 | 363,171 |
Other consumer | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 351,734 | 362,343 |
Other consumer | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 719 | 749 |
Other consumer | Potential Problem | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Other consumer | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 149 | 79 |
Total consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 9,545,333 | 9,535,357 |
Total consumer | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 9,458,252 | 9,446,881 |
Total consumer | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,866 | 2,406 |
Total consumer | Potential Problem | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 5,443 | 6,078 |
Total consumer | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 79,772 | $ 79,992 |
Loans Past Due Status (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Summarized details of Loans | ||
Current | $ 22,951,360 | $ 22,785,019 |
Nonaccrual | 155,556 | 127,901 |
Total loans | 23,148,359 | 22,940,429 |
Nonaccrual Loans, Current Portion | $ 106,000 | $ 74,000 |
Percent of current nonaccrual loans | 68.00% | 58.00% |
30-59 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | $ 36,663 | $ 21,550 |
60-89 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 2,562 | 3,795 |
90 Days or More Past Due | ||
Summarized details of Loans | ||
Total Past Due | 2,218 | 2,165 |
Commercial and industrial | ||
Summarized details of Loans | ||
Current | 7,510,637 | 7,356,187 |
Nonaccrual | 73,379 | 41,021 |
Total loans | 7,587,597 | 7,398,044 |
Commercial and industrial | 30-59 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 2,902 | 187 |
Commercial and industrial | 60-89 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 392 | 338 |
Commercial and industrial | 90 Days or More Past Due | ||
Summarized details of Loans | ||
Total Past Due | 287 | 311 |
Commercial real estate — owner occupied | ||
Summarized details of Loans | ||
Current | 925,437 | 913,787 |
Nonaccrual | 890 | 3,957 |
Total loans | 932,393 | 920,443 |
Commercial real estate — owner occupied | 30-59 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 6,066 | 2,580 |
Commercial real estate — owner occupied | 60-89 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 0 | 119 |
Commercial real estate — owner occupied | 90 Days or More Past Due | ||
Summarized details of Loans | ||
Total Past Due | 0 | 0 |
Commercial and business lending | ||
Summarized details of Loans | ||
Current | 8,436,074 | 8,269,974 |
Nonaccrual | 74,269 | 44,978 |
Total loans | 8,519,990 | 8,318,487 |
Commercial and business lending | 30-59 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 8,968 | 2,767 |
Commercial and business lending | 60-89 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 392 | 457 |
Commercial and business lending | 90 Days or More Past Due | ||
Summarized details of Loans | ||
Total Past Due | 287 | 311 |
Commercial real estate — investor | ||
Summarized details of Loans | ||
Current | 3,807,387 | 3,745,835 |
Nonaccrual | 776 | 1,952 |
Total loans | 3,809,253 | 3,751,554 |
Commercial real estate — investor | 30-59 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 1,090 | 2,954 |
Commercial real estate — investor | 60-89 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 0 | 813 |
Commercial real estate — investor | 90 Days or More Past Due | ||
Summarized details of Loans | ||
Total Past Due | 0 | 0 |
Real estate construction | ||
Summarized details of Loans | ||
Current | 1,266,270 | 1,333,722 |
Nonaccrual | 739 | 979 |
Total loans | 1,273,782 | 1,335,031 |
Real estate construction | 30-59 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 6,727 | 330 |
Real estate construction | 60-89 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 46 | 0 |
Real estate construction | 90 Days or More Past Due | ||
Summarized details of Loans | ||
Total Past Due | 0 | 0 |
Commercial real estate lending | ||
Summarized details of Loans | ||
Current | 5,073,657 | 5,079,557 |
Nonaccrual | 1,516 | 2,931 |
Total loans | 5,083,035 | 5,086,585 |
Commercial real estate lending | 30-59 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 7,816 | 3,284 |
Commercial real estate lending | 60-89 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 46 | 813 |
Commercial real estate lending | 90 Days or More Past Due | ||
Summarized details of Loans | ||
Total Past Due | 0 | 0 |
Total commercial | ||
Summarized details of Loans | ||
Current | 13,509,731 | 13,349,531 |
Nonaccrual | 75,784 | 47,909 |
Total loans | 13,603,025 | 13,405,072 |
Total commercial | 30-59 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 16,785 | 6,051 |
Total commercial | 60-89 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 439 | 1,270 |
Total commercial | 90 Days or More Past Due | ||
Summarized details of Loans | ||
Total Past Due | 287 | 311 |
Residential mortgage | ||
Summarized details of Loans | ||
Current | 8,243,248 | 8,200,432 |
Nonaccrual | 67,323 | 67,574 |
Total loans | 8,323,846 | 8,277,712 |
Residential mortgage | 30-59 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 13,018 | 9,272 |
Residential mortgage | 60-89 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 256 | 434 |
Residential mortgage | 90 Days or More Past Due | ||
Summarized details of Loans | ||
Total Past Due | 0 | 0 |
Home equity | ||
Summarized details of Loans | ||
Current | 850,223 | 876,085 |
Nonaccrual | 12,300 | 12,339 |
Total loans | 868,886 | 894,473 |
Home equity | 30-59 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 5,472 | 4,826 |
Home equity | 60-89 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 891 | 1,223 |
Home equity | 90 Days or More Past Due | ||
Summarized details of Loans | ||
Total Past Due | 0 | 0 |
Other consumer | ||
Summarized details of Loans | ||
Current | 348,158 | 358,970 |
Nonaccrual | 149 | 79 |
Total loans | 352,602 | 363,171 |
Other consumer | 30-59 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 1,389 | 1,401 |
Other consumer | 60-89 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 975 | 868 |
Other consumer | 90 Days or More Past Due | ||
Summarized details of Loans | ||
Total Past Due | 1,931 | 1,853 |
Total consumer | ||
Summarized details of Loans | ||
Current | 9,441,629 | 9,435,487 |
Nonaccrual | 79,772 | 79,992 |
Total loans | 9,545,333 | 9,535,357 |
Total consumer | 30-59 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 19,879 | 15,499 |
Total consumer | 60-89 Days Past Due | ||
Summarized details of Loans | ||
Total Past Due | 2,123 | 2,525 |
Total consumer | 90 Days or More Past Due | ||
Summarized details of Loans | ||
Total Past Due | $ 1,931 | $ 1,853 |
Loans, Impaired Loans Recorded Investment, Unpaid Principal Balance, Related Allowance, Average Recorded Investment, and Interest Income Recognized (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2019 |
Dec. 31, 2018 |
|
Loan and Lease Receivables, Impaired [Abstract] | ||
Recorded Investment | $ 159,763 | $ 133,690 |
Unpaid Principal Balance | 187,705 | 164,766 |
Related Allowance | 20,684 | 15,304 |
Average Recorded Investment | 119,935 | 145,707 |
Interest Income Recognized | $ 2,732 | $ 3,626 |
Net Recorded Investment of the Impaired Loans | 74.00% | 72.00% |
Loans with a related allowance | ||
Loan and Lease Receivables, Impaired [Abstract] | ||
Recorded Investment | $ 107,228 | $ 96,609 |
Unpaid Principal Balance | 115,307 | 102,483 |
Related Allowance | 20,684 | 15,304 |
Average Recorded Investment | 94,072 | 110,079 |
Interest Income Recognized | 1,025 | 3,699 |
Loans with no related allowance | ||
Loan and Lease Receivables, Impaired [Abstract] | ||
Recorded Investment | 52,535 | 37,081 |
Unpaid Principal Balance | 72,399 | 62,283 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 25,863 | 35,627 |
Interest Income Recognized | 1,708 | 73 |
Commercial and industrial | ||
Loan and Lease Receivables, Impaired [Abstract] | ||
Recorded Investment | 87,798 | 63,153 |
Unpaid Principal Balance | 109,873 | 87,155 |
Related Allowance | 10,876 | 5,721 |
Average Recorded Investment | 52,184 | 73,813 |
Interest Income Recognized | 1,974 | 823 |
Commercial and industrial | Loans with a related allowance | ||
Loan and Lease Receivables, Impaired [Abstract] | ||
Recorded Investment | 44,810 | 40,747 |
Unpaid Principal Balance | 48,448 | 42,131 |
Related Allowance | 10,876 | 5,721 |
Average Recorded Investment | 36,288 | 52,461 |
Interest Income Recognized | 317 | 1,167 |
Commercial and industrial | Loans with no related allowance | ||
Loan and Lease Receivables, Impaired [Abstract] | ||
Recorded Investment | 42,988 | 22,406 |
Unpaid Principal Balance | 61,425 | 45,024 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 15,896 | 21,352 |
Interest Income Recognized | 1,657 | 344 |
Commercial real estate — owner occupied | ||
Loan and Lease Receivables, Impaired [Abstract] | ||
Recorded Investment | 2,834 | 5,852 |
Unpaid Principal Balance | 2,851 | 6,910 |
Related Allowance | 50 | 24 |
Average Recorded Investment | 2,122 | 6,154 |
Interest Income Recognized | 30 | 104 |
Commercial real estate — owner occupied | Loans with a related allowance | ||
Loan and Lease Receivables, Impaired [Abstract] | ||
Recorded Investment | 2,104 | 2,080 |
Unpaid Principal Balance | 2,111 | 2,087 |
Related Allowance | 50 | 24 |
Average Recorded Investment | 2,122 | 2,179 |
Interest Income Recognized | 27 | 104 |
Commercial real estate — owner occupied | Loans with no related allowance | ||
Loan and Lease Receivables, Impaired [Abstract] | ||
Recorded Investment | 730 | 3,772 |
Unpaid Principal Balance | 740 | 4,823 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 0 | 3,975 |
Interest Income Recognized | 3 | 0 |
Commercial and business lending | ||
Loan and Lease Receivables, Impaired [Abstract] | ||
Recorded Investment | 90,632 | 69,005 |
Unpaid Principal Balance | 112,724 | 94,065 |
Related Allowance | 10,926 | 5,745 |
Average Recorded Investment | 54,307 | 79,967 |
Interest Income Recognized | 2,004 | 927 |
Commercial and business lending | Loans with a related allowance | ||
Loan and Lease Receivables, Impaired [Abstract] | ||
Recorded Investment | 46,914 | 42,827 |
Unpaid Principal Balance | 50,559 | 44,218 |
Related Allowance | 10,926 | 5,745 |
Average Recorded Investment | 38,411 | 54,640 |
Interest Income Recognized | 344 | 1,271 |
Commercial and business lending | Loans with no related allowance | ||
Loan and Lease Receivables, Impaired [Abstract] | ||
Recorded Investment | 43,718 | 26,178 |
Unpaid Principal Balance | 62,166 | 49,847 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 15,896 | 25,327 |
Interest Income Recognized | 1,660 | 344 |
Commercial real estate — investor | ||
Loan and Lease Receivables, Impaired [Abstract] | ||
Recorded Investment | 2,335 | 2,384 |
Unpaid Principal Balance | 3,604 | 3,625 |
Related Allowance | 26 | 28 |
Average Recorded Investment | 2,351 | 1,807 |
Interest Income Recognized | 17 | 106 |
Commercial real estate — investor | Loans with a related allowance | ||
Loan and Lease Receivables, Impaired [Abstract] | ||
Recorded Investment | 1,700 | 799 |
Unpaid Principal Balance | 1,799 | 805 |
Related Allowance | 26 | 28 |
Average Recorded Investment | 792 | 827 |
Interest Income Recognized | 17 | 38 |
Commercial real estate — investor | Loans with no related allowance | ||
Loan and Lease Receivables, Impaired [Abstract] | ||
Recorded Investment | 635 | 1,585 |
Unpaid Principal Balance | 1,805 | 2,820 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 1,559 | 980 |
Interest Income Recognized | 0 | 68 |
Real estate construction | ||
Loan and Lease Receivables, Impaired [Abstract] | ||
Recorded Investment | 498 | 510 |
Unpaid Principal Balance | 578 | 589 |
Related Allowance | 69 | 75 |
Average Recorded Investment | 502 | 533 |
Interest Income Recognized | 9 | 32 |
Real estate construction | Loans with a related allowance | ||
Loan and Lease Receivables, Impaired [Abstract] | ||
Recorded Investment | 498 | 510 |
Unpaid Principal Balance | 578 | 589 |
Related Allowance | 69 | 75 |
Average Recorded Investment | 502 | 533 |
Interest Income Recognized | 9 | 32 |
Real estate construction | Loans with no related allowance | ||
Loan and Lease Receivables, Impaired [Abstract] | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Commercial real estate lending | ||
Loan and Lease Receivables, Impaired [Abstract] | ||
Recorded Investment | 2,833 | 2,894 |
Unpaid Principal Balance | 4,182 | 4,214 |
Related Allowance | 94 | 103 |
Average Recorded Investment | 2,852 | 2,340 |
Interest Income Recognized | 25 | 138 |
Commercial real estate lending | Loans with a related allowance | ||
Loan and Lease Receivables, Impaired [Abstract] | ||
Recorded Investment | 2,198 | 1,309 |
Unpaid Principal Balance | 2,377 | 1,394 |
Related Allowance | 94 | 103 |
Average Recorded Investment | 1,293 | 1,360 |
Interest Income Recognized | 25 | 70 |
Commercial real estate lending | Loans with no related allowance | ||
Loan and Lease Receivables, Impaired [Abstract] | ||
Recorded Investment | 635 | 1,585 |
Unpaid Principal Balance | 1,805 | 2,820 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 1,559 | 980 |
Interest Income Recognized | 0 | 68 |
Total commercial | ||
Loan and Lease Receivables, Impaired [Abstract] | ||
Recorded Investment | 93,465 | 71,899 |
Unpaid Principal Balance | 116,906 | 98,279 |
Related Allowance | 11,021 | 5,848 |
Average Recorded Investment | 57,159 | 82,307 |
Interest Income Recognized | 2,029 | 1,065 |
Total commercial | Loans with a related allowance | ||
Loan and Lease Receivables, Impaired [Abstract] | ||
Recorded Investment | 49,112 | 44,136 |
Unpaid Principal Balance | 52,936 | 45,612 |
Related Allowance | 11,021 | 5,848 |
Average Recorded Investment | 39,704 | 56,000 |
Interest Income Recognized | 369 | 1,341 |
Total commercial | Loans with no related allowance | ||
Loan and Lease Receivables, Impaired [Abstract] | ||
Recorded Investment | 44,353 | 27,763 |
Unpaid Principal Balance | 63,970 | 52,667 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 17,455 | 26,307 |
Interest Income Recognized | 1,660 | 276 |
Residential mortgage | ||
Loan and Lease Receivables, Impaired [Abstract] | ||
Recorded Investment | 54,348 | 50,486 |
Unpaid Principal Balance | 57,824 | 54,223 |
Related Allowance | 6,197 | 6,023 |
Average Recorded Investment | 51,079 | 51,477 |
Interest Income Recognized | 574 | 1,992 |
Residential mortgage | Loans with a related allowance | ||
Loan and Lease Receivables, Impaired [Abstract] | ||
Recorded Investment | 46,165 | 41,691 |
Unpaid Principal Balance | 49,395 | 45,149 |
Related Allowance | 6,197 | 6,023 |
Average Recorded Investment | 43,194 | 42,687 |
Interest Income Recognized | 527 | 1,789 |
Residential mortgage | Loans with no related allowance | ||
Loan and Lease Receivables, Impaired [Abstract] | ||
Recorded Investment | 8,182 | 8,795 |
Unpaid Principal Balance | 8,429 | 9,074 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 7,885 | 8,790 |
Interest Income Recognized | 48 | 203 |
Home equity | ||
Loan and Lease Receivables, Impaired [Abstract] | ||
Recorded Investment | 10,792 | 10,124 |
Unpaid Principal Balance | 11,815 | 11,081 |
Related Allowance | 3,348 | 3,312 |
Average Recorded Investment | 10,538 | 10,739 |
Interest Income Recognized | 128 | 566 |
Home equity | Loans with a related allowance | ||
Loan and Lease Receivables, Impaired [Abstract] | ||
Recorded Investment | 10,792 | 9,601 |
Unpaid Principal Balance | 11,815 | 10,539 |
Related Allowance | 3,348 | 3,312 |
Average Recorded Investment | 10,015 | 10,209 |
Interest Income Recognized | 128 | 566 |
Home equity | Loans with no related allowance | ||
Loan and Lease Receivables, Impaired [Abstract] | ||
Recorded Investment | 0 | 523 |
Unpaid Principal Balance | 0 | 542 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 523 | 530 |
Interest Income Recognized | 0 | 0 |
Other consumer | ||
Loan and Lease Receivables, Impaired [Abstract] | ||
Recorded Investment | 1,158 | 1,181 |
Unpaid Principal Balance | 1,161 | 1,183 |
Related Allowance | 119 | 121 |
Average Recorded Investment | 1,159 | 1,184 |
Interest Income Recognized | 0 | 3 |
Other consumer | Loans with a related allowance | ||
Loan and Lease Receivables, Impaired [Abstract] | ||
Recorded Investment | 1,158 | 1,181 |
Unpaid Principal Balance | 1,161 | 1,183 |
Related Allowance | 119 | 121 |
Average Recorded Investment | 1,159 | 1,184 |
Interest Income Recognized | 0 | 3 |
Other consumer | Loans with no related allowance | ||
Loan and Lease Receivables, Impaired [Abstract] | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Total consumer | ||
Loan and Lease Receivables, Impaired [Abstract] | ||
Recorded Investment | 66,298 | 61,791 |
Unpaid Principal Balance | 70,799 | 66,487 |
Related Allowance | 9,664 | 9,456 |
Average Recorded Investment | 62,776 | 63,400 |
Interest Income Recognized | 703 | 2,561 |
Total consumer | Loans with a related allowance | ||
Loan and Lease Receivables, Impaired [Abstract] | ||
Recorded Investment | 58,116 | 52,473 |
Unpaid Principal Balance | 62,370 | 56,871 |
Related Allowance | 9,664 | 9,456 |
Average Recorded Investment | 54,368 | 54,080 |
Interest Income Recognized | 655 | 2,358 |
Total consumer | Loans with no related allowance | ||
Loan and Lease Receivables, Impaired [Abstract] | ||
Recorded Investment | 8,182 | 9,318 |
Unpaid Principal Balance | 8,429 | 9,616 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 8,408 | 9,320 |
Interest Income Recognized | $ 48 | $ 203 |
Loans, Troubled Debt Restructurings Performing and Nonaccrual (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Financing Receivable, Modifications [Line Items] | ||
Performing Restructured Loans | $ 46,548 | $ 53,263 |
Nonaccrual Restructured Loans | 24,172 | 26,292 |
Commercial and industrial | ||
Financing Receivable, Modifications [Line Items] | ||
Performing Restructured Loans | 15,443 | 25,478 |
Nonaccrual Restructured Loans | 107 | 249 |
Commercial real estate — owner occupied | ||
Financing Receivable, Modifications [Line Items] | ||
Performing Restructured Loans | 2,026 | 2,080 |
Nonaccrual Restructured Loans | 78 | 0 |
Commercial real estate — investor | ||
Financing Receivable, Modifications [Line Items] | ||
Performing Restructured Loans | 1,700 | 799 |
Nonaccrual Restructured Loans | 0 | 933 |
Real estate construction | ||
Financing Receivable, Modifications [Line Items] | ||
Performing Restructured Loans | 311 | 311 |
Nonaccrual Restructured Loans | 187 | 198 |
Residential mortgage | ||
Financing Receivable, Modifications [Line Items] | ||
Performing Restructured Loans | 18,226 | 16,036 |
Nonaccrual Restructured Loans | 21,549 | 22,279 |
Home equity | ||
Financing Receivable, Modifications [Line Items] | ||
Performing Restructured Loans | 7,688 | 7,385 |
Nonaccrual Restructured Loans | 2,247 | 2,627 |
Other consumer | ||
Financing Receivable, Modifications [Line Items] | ||
Performing Restructured Loans | 1,154 | 1,174 |
Nonaccrual Restructured Loans | $ 5 | $ 6 |
Loans, Loans Modified in a Troubled Debt Restructuring (Details) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019
USD ($)
loan
|
Mar. 31, 2018
USD ($)
loan
|
|
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 40 | 33 |
Recorded Investment | $ 4,739 | $ 3,958 |
Unpaid Principal Balance | $ 4,776 | $ 4,007 |
Commercial and industrial | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 0 | 2 |
Recorded Investment | $ 0 | $ 92 |
Unpaid Principal Balance | $ 0 | $ 92 |
Commercial real estate — owner occupied | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 1 | 0 |
Recorded Investment | $ 78 | $ 0 |
Unpaid Principal Balance | $ 78 | $ 0 |
Commercial real estate — investor | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 0 | 1 |
Recorded Investment | $ 0 | $ 1,007 |
Unpaid Principal Balance | $ 0 | $ 1,037 |
Residential mortgage | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 25 | 11 |
Recorded Investment | $ 4,357 | $ 1,807 |
Unpaid Principal Balance | $ 4,374 | $ 1,807 |
Home equity | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 13 | 17 |
Recorded Investment | $ 293 | $ 1,044 |
Unpaid Principal Balance | $ 312 | $ 1,060 |
Other consumer | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 1 | 2 |
Recorded Investment | $ 11 | $ 8 |
Unpaid Principal Balance | $ 11 | $ 11 |
Loans, Troubled Debt Restructurings Subsequent Default (Details) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019
USD ($)
loan
|
Mar. 31, 2018
USD ($)
loan
|
|
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 12 | 16 |
Recorded Investment | $ | $ 790 | $ 1,421 |
Residential mortgage | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 5 | 4 |
Recorded Investment | $ | $ 613 | $ 467 |
Home equity | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 7 | 12 |
Recorded Investment | $ | $ 177 | $ 954 |
Loans, Changes in the Allowance for Loan Losses by Portfolio Segment (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2019 |
Dec. 31, 2018 |
Mar. 31, 2019 |
Dec. 31, 2018 |
|
Changes in the allowance for loan losses by portfolio segment | ||||
Balance at beginning of period | $ 238,023 | $ 265,880 | ||
Charge offs | (15,486) | (50,536) | ||
Recoveries | 8,044 | 20,179 | ||
Net Charge offs | (7,442) | (30,358) | ||
Provision for loan losses | 4,500 | 2,500 | ||
Balance at end of period | 235,081 | 238,023 | ||
Allowance for loan losses: | ||||
Individually evaluated | $ 20,684 | $ 15,304 | ||
Collectively evaluated | 214,396 | 222,719 | ||
Acquired and accounted for under ASC 310-30 | 0 | 0 | ||
Total allowance for loan losses | 235,081 | 265,880 | 235,081 | 238,023 |
Loans: | ||||
Individually evaluated | 159,763 | 133,690 | ||
Collectively evaluated | 22,983,688 | 22,801,887 | ||
Acquired and accounted for under ASC 310-30 | 4,907 | 4,853 | ||
Total loans | 23,148,359 | 22,940,429 | ||
Commercial and industrial | ||||
Changes in the allowance for loan losses by portfolio segment | ||||
Balance at beginning of period | 108,835 | 123,068 | ||
Charge offs | (13,216) | (30,837) | ||
Recoveries | 5,788 | 13,714 | ||
Net Charge offs | (7,428) | (17,123) | ||
Provision for loan losses | 7,525 | 2,890 | ||
Balance at end of period | 108,933 | 108,835 | ||
Allowance for loan losses: | ||||
Individually evaluated | 10,876 | 5,721 | ||
Collectively evaluated | 98,057 | 103,114 | ||
Acquired and accounted for under ASC 310-30 | 0 | 0 | ||
Total allowance for loan losses | 108,933 | 123,068 | 108,933 | 108,835 |
Loans: | ||||
Individually evaluated | 87,798 | 63,153 | ||
Collectively evaluated | 7,496,743 | 7,331,898 | ||
Acquired and accounted for under ASC 310-30 | 3,057 | 2,994 | ||
Total loans | 7,587,597 | 7,398,044 | ||
Commercial real estate — owner occupied | ||||
Changes in the allowance for loan losses by portfolio segment | ||||
Balance at beginning of period | 9,255 | 10,352 | ||
Charge offs | 0 | (1,363) | ||
Recoveries | 1,193 | 639 | ||
Net Charge offs | 1,193 | (724) | ||
Provision for loan losses | 131 | (373) | ||
Balance at end of period | 10,579 | 9,255 | ||
Allowance for loan losses: | ||||
Individually evaluated | 50 | 24 | ||
Collectively evaluated | 10,529 | 9,231 | ||
Acquired and accounted for under ASC 310-30 | 0 | 0 | ||
Total allowance for loan losses | 9,255 | 9,255 | 10,579 | 9,255 |
Loans: | ||||
Individually evaluated | 2,834 | 5,852 | ||
Collectively evaluated | 928,723 | 913,708 | ||
Acquired and accounted for under ASC 310-30 | 836 | 883 | ||
Total loans | 932,393 | 920,443 | ||
Commercial real estate — investor | ||||
Changes in the allowance for loan losses by portfolio segment | ||||
Balance at beginning of period | 40,844 | 41,059 | ||
Charge offs | 0 | (7,914) | ||
Recoveries | 31 | 668 | ||
Net Charge offs | 31 | (7,246) | ||
Provision for loan losses | 289 | 7,031 | ||
Balance at end of period | 41,164 | 40,844 | ||
Allowance for loan losses: | ||||
Individually evaluated | 26 | 28 | ||
Collectively evaluated | 41,138 | 40,816 | ||
Acquired and accounted for under ASC 310-30 | 0 | 0 | ||
Total allowance for loan losses | 41,164 | 41,059 | 41,164 | 40,844 |
Loans: | ||||
Individually evaluated | 2,335 | 2,384 | ||
Collectively evaluated | 3,806,635 | 3,748,883 | ||
Acquired and accounted for under ASC 310-30 | 283 | 287 | ||
Total loans | 3,809,253 | 3,751,554 | ||
Real estate construction | ||||
Changes in the allowance for loan losses by portfolio segment | ||||
Balance at beginning of period | 28,240 | 34,370 | ||
Charge offs | (52) | (298) | ||
Recoveries | 52 | 446 | ||
Net Charge offs | 0 | 149 | ||
Provision for loan losses | (1,326) | (6,279) | ||
Balance at end of period | 26,914 | 28,240 | ||
Allowance for loan losses: | ||||
Individually evaluated | 69 | 75 | ||
Collectively evaluated | 26,845 | 28,165 | ||
Acquired and accounted for under ASC 310-30 | 0 | 0 | ||
Total allowance for loan losses | 28,240 | 28,240 | 26,914 | 28,240 |
Loans: | ||||
Individually evaluated | 498 | 510 | ||
Collectively evaluated | 1,273,267 | 1,334,500 | ||
Acquired and accounted for under ASC 310-30 | 18 | 21 | ||
Total loans | 1,273,782 | 1,335,031 | ||
Residential mortgage | ||||
Changes in the allowance for loan losses by portfolio segment | ||||
Balance at beginning of period | 25,595 | 29,607 | ||
Charge offs | (652) | (1,627) | ||
Recoveries | 195 | 1,271 | ||
Net Charge offs | (457) | (355) | ||
Provision for loan losses | (1,567) | (3,657) | ||
Balance at end of period | 23,571 | 25,595 | ||
Allowance for loan losses: | ||||
Individually evaluated | 6,197 | 6,023 | ||
Collectively evaluated | 17,373 | 19,572 | ||
Acquired and accounted for under ASC 310-30 | 0 | 0 | ||
Total allowance for loan losses | 25,595 | 25,595 | 23,571 | 25,595 |
Loans: | ||||
Individually evaluated | 54,347 | 50,486 | ||
Collectively evaluated | 8,268,834 | 8,226,642 | ||
Acquired and accounted for under ASC 310-30 | 664 | 584 | ||
Total loans | 8,323,846 | 8,277,712 | ||
Home equity | ||||
Changes in the allowance for loan losses by portfolio segment | ||||
Balance at beginning of period | 19,266 | 22,126 | ||
Charge offs | (254) | (3,236) | ||
Recoveries | 563 | 2,628 | ||
Net Charge offs | 309 | (608) | ||
Provision for loan losses | (1,639) | (2,252) | ||
Balance at end of period | 17,936 | 19,266 | ||
Allowance for loan losses: | ||||
Individually evaluated | 3,348 | 3,312 | ||
Collectively evaluated | 14,588 | 15,954 | ||
Acquired and accounted for under ASC 310-30 | 0 | 0 | ||
Total allowance for loan losses | 17,936 | 22,126 | 17,936 | 19,266 |
Loans: | ||||
Individually evaluated | 10,793 | 10,124 | ||
Collectively evaluated | 858,044 | 884,266 | ||
Acquired and accounted for under ASC 310-30 | 49 | 83 | ||
Total loans | 868,886 | 894,473 | ||
Other consumer | ||||
Changes in the allowance for loan losses by portfolio segment | ||||
Balance at beginning of period | 5,988 | 5,298 | ||
Charge offs | (1,312) | (5,261) | ||
Recoveries | 222 | 812 | ||
Net Charge offs | (1,090) | (4,448) | ||
Provision for loan losses | 1,087 | 5,138 | ||
Balance at end of period | 5,984 | 5,988 | ||
Allowance for loan losses: | ||||
Individually evaluated | 119 | 121 | ||
Collectively evaluated | 5,866 | 5,867 | ||
Acquired and accounted for under ASC 310-30 | 0 | 0 | ||
Total allowance for loan losses | $ 5,984 | $ 5,298 | 5,984 | 5,988 |
Loans: | ||||
Individually evaluated | 1,158 | 1,181 | ||
Collectively evaluated | 351,443 | 361,990 | ||
Acquired and accounted for under ASC 310-30 | 0 | 0 | ||
Total loans | $ 352,602 | $ 363,171 |
Loans, Changes in the Allowance for Loan Losses (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2019 |
Dec. 31, 2018 |
|
Change in the allowance for unfunded commitments | ||
Balance at beginning of period | $ 24,000 | |
Balance at end of period | 26,000 | $ 24,000 |
Allowance for Unfunded Commitments: | ||
Change in the allowance for unfunded commitments | ||
Balance at beginning of period | 24,336 | 24,400 |
Provision for unfunded commitments | 1,500 | (2,500) |
Amount recorded at acquisition | 0 | 2,436 |
Balance at end of period | $ 25,836 | $ 24,336 |
Loans Changes to Accretable Yield (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2019 |
Dec. 31, 2018 |
|
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||
Balance at beginning of period | $ 1,482 | $ 0 |
Purchases | 0 | 4,853 |
Accretion | (221) | (4,954) |
Net reclassification from non-accretable yield | 23 | 1,605 |
Other | 0 | (22) |
Balance at end of period | $ 1,285 | $ 1,482 |
Loans Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Dec. 31, 2018 |
|
Receivables [Abstract] | |||
Recorded Investment, loans modified in troubled debt restructuring | $ 4,739 | $ 3,958 | |
Restructured Loans Subsequently Accruing | 1,000 | ||
Ytd Restructured Loans Still On Nonaccrual | 4,000 | ||
Net unaccreted purchase discount | 18,000 | ||
Unaccreted purchase discount, performing loans | 16,000 | ||
Unaccreted purchase discount, nonperforming loans | 2,000 | ||
Bank Mutual | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Purchased credit-impaired loans | $ 5,000 | $ 5,000 |
Goodwill and Other Intangible Assets, Summary of Core Deposit and Other Intangibles (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Dec. 31, 2018 |
|
Summary of core deposit intangibles and other intangibles | |||
Amortization of other intangible assets | $ 2,226 | $ 1,525 | |
Core Deposit Intangibles | |||
Summary of core deposit intangibles and other intangibles | |||
Gross carrying amount | 58,100 | $ 58,100 | |
Accumulated amortization | (6,778) | (5,326) | |
Net Book Value | 51,322 | 52,774 | |
Amortization of other intangible assets | 1,453 | 5,326 | |
Additions to Core Deposits | |||
Summary of core deposit intangibles and other intangibles | |||
Additions during the period | 0 | 58,100 | |
Other Intangibles | |||
Summary of core deposit intangibles and other intangibles | |||
Gross carrying amount | 44,887 | 44,931 | |
Reductions due to sale | 0 | (43) | |
Accumulated amortization | (22,599) | (21,825) | |
Net Book Value | 22,288 | 23,062 | |
Additions during the period | 0 | 10,359 | |
Amortization of other intangible assets | $ 774 | $ 2,833 |
Goodwill and Other Intangible Assets, Mortgage Servicing Rights Roll-Forward (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2019 |
Dec. 31, 2018 |
|||
Mortgage servicing rights: | ||||
Mortgage servicing rights at beginning of period | $ 68,433 | $ 59,168 | ||
MSR Addition from Business Combination | 0 | 8,136 | ||
Additions | 1,247 | 10,722 | ||
Amortization | (2,693) | (9,594) | ||
Mortgage servicing rights at end of period | 66,987 | 68,433 | ||
Valuation Allowance for Impairment of Recognized Servicing Assets [Roll Forward] | ||||
Valuation allowance at beginning of period | (239) | (784) | ||
(Additions) recoveries, net | (121) | 545 | ||
Valuation allowance at end of period | (360) | (239) | ||
Mortgage servicing rights, net | 66,626 | 68,193 | ||
Fair value of mortgage servicing rights | 73,858 | 81,012 | ||
Portfolio of residential mortgage loans serviced for others (“servicing portfolio”) | $ 8,543,467 | $ 8,600,983 | ||
Mortgage servicing rights, net to servicing portfolio | 0.78% | 0.79% | ||
Mortgage servicing rights expense | [1] | $ 2,814 | $ 9,049 | |
|
Goodwill and Other Intangible Assets, Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Core Deposit Intangibles | ||
Estimated future amortization expense | ||
Nine Months Ending December 31, 2019 | $ 4,358 | |
Year ending December 31, 2020 | 5,810 | |
Year ending December 31, 2021 | 5,810 | |
Year ending December 31, 2022 | 5,810 | |
Year ending December 31, 2023 | 5,810 | |
Year ending December 31, 2024 | 5,810 | |
Beyond 2024 | 17,914 | |
Net Book Value | 51,322 | $ 52,774 |
Other Intangibles | ||
Estimated future amortization expense | ||
Nine Months Ending December 31, 2019 | 2,050 | |
Year ending December 31, 2020 | 2,707 | |
Year ending December 31, 2021 | 2,682 | |
Year ending December 31, 2022 | 2,659 | |
Year ending December 31, 2023 | 2,640 | |
Year ending December 31, 2024 | 2,620 | |
Beyond 2024 | 6,931 | |
Net Book Value | 22,288 | $ 23,062 |
Mortgage Servicing Rights | ||
Estimated future amortization expense | ||
Nine Months Ending December 31, 2019 | 7,983 | |
Year ending December 31, 2020 | 11,032 | |
Year ending December 31, 2021 | 9,334 | |
Year ending December 31, 2022 | 7,848 | |
Year ending December 31, 2023 | 6,579 | |
Year ending December 31, 2024 | 5,507 | |
Beyond 2024 | 18,703 | |
Net Book Value | $ 66,987 |
Goodwill and Other Intangible Assets (Details Textuals) - USD ($) |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Dec. 31, 2018 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill, Impairment Loss | $ 0 | $ 0 | |
Goodwill | $ 1,168,944,000 | $ 1,169,023,000 |
Short and Long-Term Funding (Components of Short-term and Long-term Funding) (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Short-term Funding [Abstract] | ||
Federal funds purchased | $ 13,090 | $ 19,710 |
Securities sold under agreements to repurchase | 114,008 | 91,941 |
Federal funds purchased and securities sold under agreements to repurchase | 127,098 | 111,651 |
Commercial paper | 32,019 | 45,423 |
Total short-term funding | 159,117 | 157,074 |
Long-Term Funding | ||
Corporation subordinated notes, at par, due 2025 | 250,000 | 250,000 |
Other long-term funding and capitalized costs | (3,993) | (4,389) |
Total long-term funding | 796,007 | 795,611 |
Long-term Funding | ||
Total short and long-term funding, excluding FHLB advances | 955,123 | 952,685 |
FHLB Advances | ||
Short-term FHLB advances | 20,000 | 900,000 |
Long-term FHLB advances | 2,924,769 | 2,674,371 |
Total FHLB advances | 2,944,769 | 3,574,371 |
Total short and long-term funding, excluding FHLB advances | 3,899,893 | 4,527,056 |
Corporation senior notes [Member] | ||
Long-Term Funding | ||
Senior notes, at par | 250,000 | 250,000 |
Bank senior notes [Member] | ||
Long-Term Funding | ||
Senior notes, at par | $ 300,000 | $ 300,000 |
Short and Long-Term Funding (Remaining Contractual Maturity of the Securities Sold Under Agreements to Repurchase) (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
RemainingContractualMaturityoftheSecuritiesSoldUnderAgreementtoRepurchase [Line Items] | ||
Repurchase agreements | $ 114,008 | $ 91,941 |
Overnight and Continuous | ||
RemainingContractualMaturityoftheSecuritiesSoldUnderAgreementtoRepurchase [Line Items] | ||
Repurchase agreements | 114,008 | 91,941 |
Up to 30 days | ||
RemainingContractualMaturityoftheSecuritiesSoldUnderAgreementtoRepurchase [Line Items] | ||
Repurchase agreements | 0 | 0 |
30-90 days | ||
RemainingContractualMaturityoftheSecuritiesSoldUnderAgreementtoRepurchase [Line Items] | ||
Repurchase agreements | 0 | 0 |
Greater than 90 days | ||
RemainingContractualMaturityoftheSecuritiesSoldUnderAgreementtoRepurchase [Line Items] | ||
Repurchase agreements | 0 | 0 |
Agency mortgage-related securities | ||
RemainingContractualMaturityoftheSecuritiesSoldUnderAgreementtoRepurchase [Line Items] | ||
Repurchase agreements | 114,008 | 91,941 |
Agency mortgage-related securities | Overnight and Continuous | ||
RemainingContractualMaturityoftheSecuritiesSoldUnderAgreementtoRepurchase [Line Items] | ||
Repurchase agreements | 114,008 | 91,941 |
Agency mortgage-related securities | Up to 30 days | ||
RemainingContractualMaturityoftheSecuritiesSoldUnderAgreementtoRepurchase [Line Items] | ||
Repurchase agreements | 0 | 0 |
Agency mortgage-related securities | 30-90 days | ||
RemainingContractualMaturityoftheSecuritiesSoldUnderAgreementtoRepurchase [Line Items] | ||
Repurchase agreements | 0 | 0 |
Agency mortgage-related securities | Greater than 90 days | ||
RemainingContractualMaturityoftheSecuritiesSoldUnderAgreementtoRepurchase [Line Items] | ||
Repurchase agreements | $ 0 | $ 0 |
Short and Long-Term Funding FHLB Maturity Schedule (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
FHLB_Maturity_ [Line Items] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances | $ 2,944,769 | $ 3,574,371 |
FHLB Weighted Average Coupon Rate | 2.71% | 2.19% |
FHLB Maturity within One Year [Domain] | ||
FHLB_Maturity_ [Line Items] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances | $ 2,232,703 | $ 2,262,584 |
FHLB Weighted Average Coupon Rate | 2.79% | 2.06% |
FHLB Maturity One Year to Two Years [Domain] | ||
FHLB_Maturity_ [Line Items] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances | $ 688,035 | $ 1,285,039 |
FHLB Weighted Average Coupon Rate | 2.43% | 2.39% |
FHLB Maturity Over Two Years to Three Years [Domain] | ||
FHLB_Maturity_ [Line Items] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances | $ 16,064 | $ 14,393 |
FHLB Weighted Average Coupon Rate | 3.22% | 2.98% |
FHLB Maturity Over Three Years [Domain] | ||
FHLB_Maturity_ [Line Items] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances | $ 7,968 | $ 12,354 |
FHLB Weighted Average Coupon Rate | 3.78% | 4.55% |
Short and Long-Term Funding (Long-term Funding Narrative) (Details) - USD ($) $ in Thousands |
1 Months Ended | 3 Months Ended | ||
---|---|---|---|---|
Nov. 30, 2014 |
Mar. 31, 2019 |
Dec. 31, 2018 |
Aug. 31, 2018 |
|
Long-Term Funding | ||||
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances | $ 2,944,769 | $ 3,574,371 | ||
Subordinated Borrowing [Line Items] | ||||
Carrying Value of Securities Purchased under Agreements to Resell and Deposits Paid for Securities Borrowed | 171,000 | |||
Two Thousand Fourteen Subordinated Notes | ||||
Subordinated Borrowing [Line Items] | ||||
Junior Subordinated Debentures Issued | $ 250,000 | |||
Debt Instrument, Term | 10 years | |||
Subordinated Borrowing, Interest Rate | 4.25% | |||
Two Thousand Eighteen Senior Notes [Member] [Domain] | ||||
Long-Term Funding | ||||
New Senior Debt Issued | $ 300,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.50% | |||
Two Thousand Fourteen Senior Notes [Member] | ||||
Long-Term Funding | ||||
New Senior Debt Issued | $ 250,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 2.75% | |||
FHLBDecreaseinAdvances [Domain] | ||||
Long-Term Funding | ||||
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances | 630,000 | |||
FLHB Advances, Putable [Domain] | ||||
Long-Term Funding | ||||
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances | $ 2,800,000 | |||
FHLB Short Term Advances [Member] | ||||
Long-Term Funding | ||||
FHLB Put Contractual Maturity Weighted Average Life1 | 8 months 8 days | |||
FHLB Long Term Advances [Member] | ||||
Long-Term Funding | ||||
FHLB Put Contractual Maturity Weighted Average Life1 | 7 years 29 days |
Derivative and Hedging Activities, Derivative Instruments Not Designated as Hedging Instruments (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Not Designated as Hedging Instrument | Trading Assets [Member] | Interest rate-related instruments — customer and mirror | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional Amount | $ 2,726,738 | $ 2,707,204 |
Derivative, Fair Value, Net | 54,479 | 52,796 |
Not Designated as Hedging Instrument | Trading Assets [Member] | Foreign currency exchange forwards | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional Amount | 92,285 | 117,879 |
Derivative, Fair Value, Net | 1,737 | 721 |
Not Designated as Hedging Instrument | Trading Assets [Member] | Commodity contracts | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional Amount | 284,655 | 331,727 |
Derivative, Fair Value, Net | 21,705 | 35,426 |
Not Designated as Hedging Instrument | Trading Liabilities [Member] | Interest rate-related instruments — customer and mirror | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional Amount | 2,726,738 | 2,707,204 |
Derivative, Fair Value, Net | (55,008) | (52,653) |
Not Designated as Hedging Instrument | Trading Liabilities [Member] | Foreign currency exchange forwards | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional Amount | 103,238 | 69,153 |
Derivative, Fair Value, Net | (1,665) | (675) |
Not Designated as Hedging Instrument | Trading Liabilities [Member] | Commodity contracts | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional Amount | 284,656 | 315,861 |
Derivative, Fair Value, Net | (21,186) | (34,340) |
Not Designated as Hedging Instrument | Other Assets [Member] | Interest rate lock commitments (mortgage) | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional Amount | 269,075 | 191,222 |
Derivative, Fair Value, Net | 3,032 | 2,208 |
Not Designated as Hedging Instrument | Other Assets [Member] | Purchased options (time deposit) | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional Amount | 7,885 | 11,185 |
Derivative, Fair Value, Net | 156 | 109 |
Not Designated as Hedging Instrument | Other liabilities | Forward commitments (mortgage) | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional Amount | 191,112 | 139,984 |
Derivative, Fair Value, Net | (1,825) | (2,072) |
Not Designated as Hedging Instrument | Other liabilities | Written options (time deposit) | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional Amount | 7,885 | 11,185 |
Derivative, Fair Value, Net | (156) | (109) |
Designated as Hedging Instrument | Other liabilities | interest rate product [Member] | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional Amount | 500,000 | 500,000 |
Derivative, Fair Value, Net | $ (128) | $ (40) |
Derivative and Hedging Activities Cumulative Basis Adjustment for Fair Value Hedges (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Balance Sheet Recording of Fair Value Hedge [Line Items] | ||
Carrying Amount of the Hedged Assets/(Liabilities) | $ 77,920 | $ 88,943 |
Designated as Hedging Instrument | ||
Balance Sheet Recording of Fair Value Hedge [Line Items] | ||
Carrying Amount of the Hedged Assets/(Liabilities) | 500,000 | |
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) | 2,000 | |
Amortized cost basis of hedged asset | 1,100,000 | |
Carrying Value [Member] | Designated as Hedging Instrument | ||
Balance Sheet Recording of Fair Value Hedge [Line Items] | ||
Carrying Amount of the Hedged Assets/(Liabilities) | 501,555 | |
adjustment [Member] | Designated as Hedging Instrument | ||
Balance Sheet Recording of Fair Value Hedge [Line Items] | ||
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) | $ 1,555 |
Derivative and Hedging Activities Income impact of Fair Value and Cash Flow Hedge (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2019 |
Dec. 31, 2018 |
|
Interest Income [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | $ 166 | $ (1,325) |
Other Operating Income (Expense) [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 0 | 0 |
Not Designated as Hedging Instrument, Economic Hedge [Member] | Interest Income [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 2,057 | (502) |
Not Designated as Hedging Instrument, Economic Hedge [Member] | Other Operating Income (Expense) [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 0 | 0 |
Designated as Hedging Instrument | Interest Income [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | (1,891) | (823) |
Designated as Hedging Instrument | Other Operating Income (Expense) [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | $ 0 | $ 0 |
Derivative and Hedging Activities Derivative Impact on Perfomance (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Capital Market Fees [Member] | Interest Rate Related Instruments Customer and Mirror [Member] | ||
Derivative Impact on Performance [Line Items] | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ (672) | $ 492 |
Capital Market Fees [Member] | Foreign Exchange Forward [Member] | ||
Derivative Impact on Performance [Line Items] | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 26 | (28) |
Capital Market Fees [Member] | Commodity Contract [Member] | ||
Derivative Impact on Performance [Line Items] | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | (567) | 164 |
Mortgage Banking [Member] | Interest Rate Lock Commitments [Member] | ||
Derivative Impact on Performance [Line Items] | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 824 | 1,494 |
Mortgage Banking [Member] | Forward Contracts [Member] | ||
Derivative Impact on Performance [Line Items] | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ 247 | $ 10 |
Derivative and Hedging Activities (Details Textuals) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Investment securities and cash equivalents pledged as collateral | $ 35 | $ 36 |
Derivative collateral right to reclaim cash | $ 32 | $ 1 |
Balance Sheet Offsetting (Details) - Interest Rate Contract - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Offsetting Derivative Assets [Abstract] | ||
Gross amounts recognized | $ 25,486 | $ 65,596 |
Gross amounts offset in the balance sheet | 0 | 0 |
Net amounts presented in the balance sheet | 25,486 | 65,596 |
Financial instruments | (24,210) | (22,873) |
Collateral | (1,044) | (41,879) |
Net amount | 232 | 843 |
Offsetting Derivative Liabilities [Abstract] | ||
Gross amounts recognized | 52,768 | 22,951 |
Gross amounts offset in the balance sheet | 0 | 0 |
Net amounts presented in the balance sheet | 52,768 | 22,951 |
Financial instruments | (24,210) | (22,873) |
Collateral | (25,889) | (63) |
Net amount | $ 2,669 | $ 16 |
Commitments, Off-Balance Sheet Arrangements, Legal Proceedings and Regulatory Matters, Summary of Lending Related and Other Commitments (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Schedule of lending-related and other commitments [Line Items] | ||
Lending related commitments, fair value | $ 0 | |
Commitments to extend credit, excluding commitments to originate residential mortgage loans held for sale | ||
Summary of lending-related and other commitments | ||
Lending related commitments | 8,687,001 | $ 8,720,293 |
Commercial Letters Of Credit | ||
Summary of lending-related and other commitments | ||
Lending related commitments | 6,192 | 7,599 |
Standby Letters of Credit | ||
Summary of lending-related and other commitments | ||
Lending related commitments | 256,389 | 255,904 |
Standby letters of credit, fair value | $ 2,000 | $ 2,000 |
Commitments, Off-Balance Sheet Arrangements, Legal Proceedings and Regulatory Matters Residential Mortgage Repurchase Reserve (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2019 |
Dec. 31, 2018 |
|
Residential mortgage repurchase reserve | ||
Balance at beginning of period | $ 24,000 | |
Balance at end of period | 26,000 | $ 24,000 |
Mortgage Repurchase Reserve | ||
Residential mortgage repurchase reserve | ||
Balance at beginning of period | 752 | 987 |
Repurchase provision expense | 48 | 345 |
Adjustments to provision expense | 0 | (450) |
Charge offs, net | (70) | (218) |
Amount recorded at acquisition | 0 | 88 |
Balance at end of period | $ 730 | $ 752 |
Commitments, Off-Balance Sheet Arrangements, Legal Proceedings and Regulatory Matters (Details Textuals) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Dec. 31, 2018 |
|
Commitments, Off-Balance Sheet Arrangements, and Contingent Liabilities (Textuals) [Line Items] | |||
Unfunded Commitments | $ 26,000 | $ 24,000 | |
Expense Related to Qualified Affordable Housing Projects | 5,000 | $ 5,000 | |
Remaining Investment in Qualified Affordable Housing Projects | 160,000 | 132,000 | |
Variable Interest Entity Reporting Entity Involvement Unfunded Obligation Amount | 73,000 | 51,000 | |
Loans Repurchased Under Make Whole Requests | $ 305 | $ 2,000 | |
Loans Sold To Outside Investors Loss ReimbursementSettlement Paid | negligible | negligible | |
Loans Sold To Outside Investors Original Amount | $ 11,300,000 | ||
Loans Sold To Outside Investors Remaining Outstanding Amount | 7,300,000 | ||
Residential Mortgage Loans Sold With Recourse Risk | 31,000 | $ 47,000 | |
Residential Mortgage Loans Sold With Credit Recourse Risk | 54,000 | 57,000 | |
UnconsolidatedProjectsLowIncomeHousing [Member] | |||
Commitments, Off-Balance Sheet Arrangements, and Contingent Liabilities (Textuals) [Line Items] | |||
Other Investments | 169,000 | 136,000 | |
PrincipalInvestmentCommitment [Member] | |||
Commitments, Off-Balance Sheet Arrangements, and Contingent Liabilities (Textuals) [Line Items] | |||
Other Investments | 25,000 | 25,000 | |
Standby Letters of Credit | |||
Commitments, Off-Balance Sheet Arrangements, and Contingent Liabilities (Textuals) [Line Items] | |||
Lines of Credit, Fair Value Disclosure | $ 2,000 | $ 2,000 |
Fair Value Measurements, Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available for sale | $ 3,829,388 | $ 3,946,941 |
Trading assets | 77,920 | 88,943 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Trading liabilities | 77,859 | 87,668 |
Fair Value, Inputs, Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available for sale | 0 | 999 |
Fair Value, Inputs, Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available for sale | 3,829,388 | 3,945,943 |
Fair Value, Inputs, Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Trading assets | 3,032 | 2,208 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Trading liabilities | 1,825 | 2,072 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | US Treasury Securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available for sale | 0 | 999 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Other Debt And Other Equity Securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available for sale | 1,609 | 1,568 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Total investment securities available for sale | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available for sale | 0 | 999 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | GNMA | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available for sale | 2,038,100 | 2,128,531 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Private-label | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available for sale | 878 | 1,003 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | FFELP asset backed securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available for sale | 276,899 | 297,360 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Other Debt And Other Equity Securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available for sale | 3,000 | 3,000 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Total investment securities available for sale | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available for sale | 3,829,388 | 3,945,943 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Residential Loans Held For Sale Member | ||
Assets, Fair Value Disclosure [Abstract] | ||
Trading assets | 81,392 | 64,321 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Commercial loans held for sale [Domain] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Trading assets | 15,467 | 14,943 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Interest rate-related instruments — customer and mirror | ||
Assets, Fair Value Disclosure [Abstract] | ||
Trading assets | 54,479 | 52,796 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Trading liabilities | 55,008 | 52,653 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Foreign currency exchange forwards | ||
Assets, Fair Value Disclosure [Abstract] | ||
Trading assets | 1,737 | 721 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Trading liabilities | 1,665 | 675 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Commodity contracts | ||
Assets, Fair Value Disclosure [Abstract] | ||
Trading assets | 21,705 | 35,426 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Trading liabilities | 21,186 | 34,340 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Purchased options (time deposit) | ||
Assets, Fair Value Disclosure [Abstract] | ||
Trading assets | 156 | 109 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Trading liabilities | 156 | 109 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Interest rate lock commitments (mortgage) | ||
Assets, Fair Value Disclosure [Abstract] | ||
Trading assets | 3,032 | 2,208 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Forward commitments (mortgage) | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Trading liabilities | 1,825 | 2,072 |
Designated as Hedging Instrument | ||
Assets, Fair Value Disclosure [Abstract] | ||
Trading assets | 500,000 | |
Designated as Hedging Instrument | Fair Value, Inputs, Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Interest Rate Fair Value Hedge Derivative at Fair Value, Net | 128 | 40 |
FNMA/FHLMC | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | FNMA / FHLMC | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available for sale | 242,074 | 295,252 |
FNMA/FHLMC | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Commercial mortgage-related securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available for sale | 20,655 | 0 |
GNMA | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Commercial mortgage-related securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities available for sale | $ 1,247,782 | $ 1,220,797 |
Fair Value Measurements Financial Instruments Classified Within Level 3 (Details) - Derivative Financial Instruments - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2019 |
Dec. 31, 2018 |
|
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning Balance | $ 140 | $ 1,225 |
Mortgage derivative loss | 1,072 | (1,085) |
Ending Balance | $ 1,211 | $ 140 |
Fair Value Measurements, Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Dec. 31, 2018 |
|
Assets and Liabilities Measured at Fair Value on a Non-recurring Basis | |||
Mortgage servicing rights | $ 73,858 | $ 81,012 | |
Mortgage Servicing Rights (MSR) Impairment (Recovery) | 121 | $ (474) | |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 | |||
Assets and Liabilities Measured at Fair Value on a Non-recurring Basis | |||
Other Real Estate Owned Fair Value Disclosure | 183 | 2,200 | |
Foreclosure / OREO expense, net | (148) | (1,545) | |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 | |||
Assets and Liabilities Measured at Fair Value on a Non-recurring Basis | |||
Impaired loans | 52,831 | 26,191 | |
Provision for Credit Losses, Impaired Loans | (18,529) | (14,521) | |
Mortgage servicing rights | 73,858 | 81,012 | |
Mortgage Servicing Rights (MSR) Impairment (Recovery) | $ (121) | $ 545 |
Fair Value Measurements Fair Value Unobservable Level 3 Measurements (Details) - Fair Value, Inputs, Level 3 |
3 Months Ended |
---|---|
Mar. 31, 2019 | |
Discounted Cash Flow | Mortgage Servicing Rights | |
Assumption for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement [Line Items] | |
Assumption for Fair Value of Assets or Liabilities that relate to Transferor's Continuing Involvement, Discount Rate | 11.00% |
Assumption for Fair Value of Assets or Liabilities that relate to Transferor's Continuing Involvement, Prepayment Speed | 12.00% |
Appraisals/Discounted Cash Flow | Impaired Finance Receivable | |
Assumption for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement [Line Items] | |
Assumption for Fair Value of Assets or Liabilities that relate to Transferor's Continuing Involvement, Discount Rate | 27.00% |
Fair Value Measurements, Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Financial assets | ||
Cash and due from banks | $ 334,095 | $ 507,187 |
Interest-bearing deposits in other financial institutions | 270,843 | 221,226 |
Federal funds sold and securities purchased under agreements to resell | 41,405 | 148,285 |
Debt Securities, Held-to-maturity | 2,846,689 | 2,740,511 |
Investment securities held to maturity, fair value | 2,868,870 | 2,710,271 |
Investment securities available for sale | 3,829,388 | 3,946,941 |
Equity securities with readily determinable fair values, Fair Value | 1,609 | 1,568 |
FHLB and Federal Reserve Bank stocks | 216,940 | 250,534 |
Residential Loans Receivable Held-for-sale, Net, Not Part of Disposal Group | 81,392 | 64,321 |
Commercial Loans Held-for-sale, Fair Value Disclosure | 15,467 | 14,943 |
Loans, net | 22,913,278 | 22,702,406 |
Bank and Corporate Owned Life Insurance | 665,976 | 663,203 |
Derivatives (trading assets) | 77,920 | 88,943 |
Financial liabilities | ||
Short-term funding | 159,117 | 157,074 |
Other long-term funding | 796,007 | 795,611 |
Derivatives (trading liabilities) | 77,859 | 87,668 |
Letters of Credit Outstanding, Amount | 256,000 | 256,000 |
Fair Value, Inputs, Level 1 | ||
Financial assets | ||
Cash and due from banks | 334,095 | 507,187 |
Cash and due from banks, Fair Value | 334,095 | 507,187 |
Interest-bearing deposits in other financial institutions | 270,843 | 221,226 |
Interest-bearing deposits in other financial institutions, fair value | 270,843 | 221,226 |
Federal funds sold and securities purchased under agreements to resell | 41,405 | 148,285 |
Federal funds sold and securities purchased under agreements to resell, fair value | 41,405 | 148,285 |
Debt Securities, Held-to-maturity | 999 | 0 |
Investment securities held to maturity, fair value | 1,007 | 0 |
Investment securities available for sale | 0 | 999 |
Investment securities available for sale, fair value | 0 | 999 |
Equity securities with readily determinable fair value, Carrying Amount | 1,609 | 1,568 |
Equity securities with readily determinable fair values, Fair Value | 1,609 | 1,568 |
Fair Value, Inputs, Level 2 | ||
Financial assets | ||
Debt Securities, Held-to-maturity | 2,845,690 | 2,740,511 |
Investment securities held to maturity, fair value | 2,867,864 | 2,710,271 |
Investment securities available for sale | 3,829,388 | 3,945,943 |
Investment securities available for sale, fair value | 3,829,388 | 3,945,943 |
FHLB and Federal Reserve Bank stocks | 216,940 | 250,534 |
FHLB and Federal Reserve Bank stocks, fair value | 216,940 | 250,534 |
Residential Loans Receivable Held-for-sale, Net, Not Part of Disposal Group | 81,392 | 64,321 |
Residential Held-for-sale, Fair Value Disclosure | 81,392 | 64,321 |
Commercial loans held for sale | 15,467 | 14,943 |
Commercial Loans Held-for-sale, Fair Value Disclosure | 15,467 | 14,943 |
Bank and Corporate Owned Life Insurance | 665,976 | 663,203 |
Bank owned life insurance, fair value | 665,976 | 663,203 |
Financial liabilities | ||
Brokered CDs and other time deposits | 3,751,665 | 2,815,401 |
Brokered CDs and other time deposits, fair value | 3,751,665 | 2,815,401 |
Short-term funding | 179,117 | 1,057,074 |
Short-term funding, fair value | 179,117 | 1,057,074 |
Other long-term funding | 3,720,776 | 3,469,982 |
Long-term funding, fair value | 3,761,004 | 3,492,174 |
Standby letters of credit | 2,478 | 2,482 |
Standby letters of credit, fair value | 2,478 | 2,482 |
Fair Value, Inputs, Level 3 | ||
Financial assets | ||
Loans, net | 22,913,278 | 22,702,406 |
Loans, net, fair value | 22,626,091 | 22,317,395 |
Derivatives (trading assets) | 3,032 | 2,208 |
Derivatives (trading and other assets), fair value | 3,032 | 2,208 |
Financial liabilities | ||
Noninterest-bearing demand, savings, interest-bearing demand, and money market accounts | 21,781,392 | 22,081,992 |
Noninterest-bearing demand, savings, interest-bearing demand, and money market deposits, fair value | 21,781,392 | 22,081,992 |
Derivatives (trading liabilities) | 1,825 | 2,072 |
Derivatives (trading and other liabilities), fair value | 1,825 | 2,072 |
Trading Assets [Member] | Fair Value, Inputs, Level 2 | ||
Financial assets | ||
Derivatives (trading assets) | 77,920 | 88,943 |
Derivatives (trading and other assets), fair value | 77,920 | 88,943 |
Other Assets [Member] | Fair Value, Inputs, Level 2 | ||
Financial assets | ||
Derivatives (trading assets) | 156 | 109 |
Derivatives (trading and other assets), fair value | 156 | 109 |
Trading Liabilities [Member] | Fair Value, Inputs, Level 2 | ||
Financial liabilities | ||
Derivatives (trading liabilities) | 77,859 | 87,668 |
Derivatives (trading and other liabilities), fair value | 77,859 | 87,668 |
Other Liabilities [Member] | Fair Value, Inputs, Level 2 | ||
Financial liabilities | ||
Derivatives (trading liabilities) | 284 | 149 |
Derivatives (trading and other liabilities), fair value | $ 284 | $ 149 |
Fair Value Measurements (Details Textuals) |
3 Months Ended |
---|---|
Mar. 31, 2019 | |
Fair Value Measurements (Textuals) [Abstract] | |
Fair Value Inputs Closing Ratio | 85.00% |
Retirement Plans, Components of Net Periodic Benefit Cost for the Pension and Postretirement Tables (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
RAP | ||
Net period benefit cost for the pension and postretirement plans | ||
Service cost | $ 1,925 | $ 1,893 |
Interest cost | 2,413 | 1,660 |
Expected return on plan assets | (6,075) | (4,755) |
Amortization of prior service cost | (19) | (19) |
Amortization of actuarial loss | 65 | 463 |
Total net pension and periodic benefit cost | (1,691) | (759) |
Bank Mutual Pension Plan | ||
Net period benefit cost for the pension and postretirement plans | ||
Interest cost | 433 | |
Expected return on plan assets | (532) | |
Total net pension and periodic benefit cost | (99) | |
Postretirement Plan | ||
Net period benefit cost for the pension and postretirement plans | ||
Interest cost | 26 | 26 |
Amortization of prior service cost | (19) | (19) |
Amortization of actuarial loss | (1) | 2 |
Total net pension and periodic benefit cost | $ 6 | $ 9 |
Segment Reporting (Details) $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2019
USD ($)
segment
|
Mar. 31, 2018
USD ($)
|
|||
Segment Reporting Information [Line Items] | ||||
Number of Reportable Segments | segment | 3 | |||
Segment Income Statement Data Abstract | ||||
Net interest income | $ 215,547 | $ 209,871 | ||
Net intersegment interest income (expense) | 0 | 0 | ||
Segment net interest income | 215,547 | 209,871 | ||
Noninterest income | 91,202 | 90,380 | ||
Total revenue | 306,749 | 300,251 | ||
Credit provision | 6,000 | 0 | ||
Noninterest Expense | 191,671 | 212,965 | ||
Income (loss) before income taxes | 109,078 | 87,285 | ||
Income tax expense (benefit) | 22,392 | 17,829 | ||
Net income | 86,686 | 69,456 | ||
Segment Balance Sheet Data | ||||
Allocated Goodwill - Segment | 1,168,944 | 1,153,156 | ||
Operating Segments | Corporate and Commercial Specialty | ||||
Segment Income Statement Data Abstract | ||||
Net interest income | 115,909 | 104,435 | ||
Net intersegment interest income (expense) | (22,622) | (8,477) | ||
Segment net interest income | 93,287 | 95,958 | ||
Noninterest income | 11,445 | 12,683 | ||
Total revenue | 104,733 | 108,641 | ||
Credit provision | 13,485 | 10,598 | ||
Noninterest Expense | 38,788 | 39,250 | ||
Income (loss) before income taxes | 52,460 | 58,793 | ||
Income tax expense (benefit) | 10,003 | 11,426 | ||
Net income | 42,457 | 47,367 | ||
Segment Balance Sheet Data | ||||
Allocated Goodwill - Segment | 524,525 | 519,779 | ||
Operating Segments | Community, Consumer, and Business | ||||
Segment Income Statement Data Abstract | ||||
Net interest income | 88,072 | 86,395 | ||
Net intersegment interest income (expense) | 23,442 | 17,148 | ||
Segment net interest income | 111,514 | 103,543 | ||
Noninterest income | 74,223 | 74,036 | ||
Total revenue | 185,737 | 177,579 | ||
Credit provision | 5,033 | 4,966 | ||
Noninterest Expense | 130,863 | 127,144 | ||
Income (loss) before income taxes | 49,841 | 45,469 | ||
Income tax expense (benefit) | 10,443 | 9,549 | ||
Net income | 39,398 | 35,920 | ||
Segment Balance Sheet Data | ||||
Allocated Goodwill - Segment | 644,419 | 633,377 | ||
Operating Segments | Risk Management and Shared Services | ||||
Segment Income Statement Data Abstract | ||||
Net interest income | 11,567 | 19,041 | ||
Net intersegment interest income (expense) | (821) | (8,671) | ||
Segment net interest income | 10,746 | 10,370 | ||
Noninterest income | 5,533 | 3,661 | ||
Total revenue | 16,280 | 14,031 | ||
Credit provision | (12,518) | (15,563) | ||
Noninterest Expense | 21,893 | 46,571 | ||
Income (loss) before income taxes | 6,905 | (16,977) | ||
Income tax expense (benefit) | 1,947 | (3,146) | ||
Net income | 4,958 | (13,831) | ||
Segment Balance Sheet Data | ||||
Allocated Goodwill - Segment | 0 | 0 | ||
Business Combination, Acquisition Related Costs | [1] | $ 632 | $ 20,605 | |
|
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning Balance | $ (124,972) | |
Debt Securities, Available-for-sale, Realized Loss | 0 | $ 0 |
Personnel expense | 120,050 | 117,685 |
Change in Equity Securities(2016-01) | 84 | |
Interest income (amortization of net unrealized losses (gains) on available for sale securities transferred to held to maturity securities) | (69) | 297 |
Total other comprehensive income (loss) | 21,597 | (44,915) |
Ending Balance | (103,375) | |
Investment Securities Available For Sale | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning Balance | (75,643) | (38,453) |
Other comprehensive income (loss) before reclassifications | 30,490 | (41,834) |
Debt Securities, Available-for-sale, Realized Loss | (1,680) | |
Personnel expense | 0 | 0 |
Other Expenses | 0 | 0 |
Change in Equity Securities(2016-01) | (84) | |
Reporting Comprehensive Income(2018-02) | (8,419) | |
Interest income (amortization of net unrealized losses (gains) on available for sale securities transferred to held to maturity securities) | 69 | (297) |
Income tax (expense) benefit | (7,301) | 10,635 |
Total other comprehensive income (loss) | 21,578 | (40,000) |
Ending Balance | (54,065) | (78,453) |
Defined Benefit Pension and Post Retirement Obligations | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning Balance | (49,330) | (24,305) |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Debt Securities, Available-for-sale, Realized Loss | 0 | |
Personnel expense | (38) | (38) |
Other Expenses | 64 | 465 |
Change in Equity Securities(2016-01) | 0 | |
Reporting Comprehensive Income(2018-02) | (5,235) | |
Interest income (amortization of net unrealized losses (gains) on available for sale securities transferred to held to maturity securities) | 0 | 0 |
Income tax (expense) benefit | (7) | (107) |
Total other comprehensive income (loss) | 20 | (4,915) |
Ending Balance | (49,310) | (29,220) |
Accumulated Other Comprehensive Income (Loss) | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning Balance | (124,972) | (62,758) |
Other comprehensive income (loss) before reclassifications | 30,490 | (41,834) |
Debt Securities, Available-for-sale, Realized Loss | (1,680) | |
Personnel expense | (38) | (38) |
Other Expenses | 64 | 465 |
Change in Equity Securities(2016-01) | (84) | |
Reporting Comprehensive Income(2018-02) | (13,654) | |
Interest income (amortization of net unrealized losses (gains) on available for sale securities transferred to held to maturity securities) | 69 | (297) |
Income tax (expense) benefit | (7,308) | 10,528 |
Total other comprehensive income (loss) | 21,597 | (44,915) |
Ending Balance | $ (103,375) | $ (107,673) |
Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|||
Disaggregation of Revenue [Line Items] | ||||
Noninterest Income In Scope of Topic 606 | $ 72,538 | $ 72,725 | ||
Other revenue | 18,665 | 17,655 | ||
Total noninterest income | 91,202 | 90,380 | ||
Insurance commissions and fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest Income In Scope of Topic 606 | 25,464 | 22,648 | ||
Wealth management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest Income In Scope of Topic 606 | [1] | 20,180 | 20,642 | |
Service charges and deposit account fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest Income In Scope of Topic 606 | 15,115 | 16,420 | ||
Card-based fees(a) | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest Income In Scope of Topic 606 | 9,295 | 9,472 | ||
Other revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest Income In Scope of Topic 606 | 2,484 | 3,544 | ||
Corporate and Commercial Specialty | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest Income In Scope of Topic 606 | 3,448 | 5,195 | ||
Other revenue | 7,998 | 7,488 | ||
Corporate and Commercial Specialty | Insurance commissions and fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest Income In Scope of Topic 606 | 0 | 0 | ||
Corporate and Commercial Specialty | Wealth management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest Income In Scope of Topic 606 | 0 | 0 | ||
Corporate and Commercial Specialty | Service charges and deposit account fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest Income In Scope of Topic 606 | 3,388 | 4,225 | ||
Corporate and Commercial Specialty | Card-based fees(a) | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest Income In Scope of Topic 606 | 328 | 315 | ||
Corporate and Commercial Specialty | Other revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest Income In Scope of Topic 606 | (268) | 655 | ||
Community, Consumer, and Business | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest Income In Scope of Topic 606 | 68,899 | 67,198 | ||
Other revenue | 5,325 | 6,838 | ||
Community, Consumer, and Business | Insurance commissions and fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest Income In Scope of Topic 606 | 25,461 | 22,624 | ||
Community, Consumer, and Business | Wealth management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest Income In Scope of Topic 606 | 20,180 | 20,401 | ||
Community, Consumer, and Business | Service charges and deposit account fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest Income In Scope of Topic 606 | 11,708 | 12,183 | ||
Community, Consumer, and Business | Card-based fees(a) | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest Income In Scope of Topic 606 | 8,919 | 9,154 | ||
Community, Consumer, and Business | Other revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest Income In Scope of Topic 606 | 2,632 | 2,837 | ||
Risk Management and Shared Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest Income In Scope of Topic 606 | 191 | 332 | ||
Other revenue | 5,342 | 3,329 | ||
Risk Management and Shared Services | Insurance commissions and fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest Income In Scope of Topic 606 | 3 | 24 | ||
Risk Management and Shared Services | Wealth management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest Income In Scope of Topic 606 | 0 | 241 | ||
Risk Management and Shared Services | Service charges and deposit account fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest Income In Scope of Topic 606 | 19 | 12 | ||
Risk Management and Shared Services | Card-based fees(a) | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest Income In Scope of Topic 606 | 49 | 3 | ||
Risk Management and Shared Services | Other revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest Income In Scope of Topic 606 | 120 | 52 | ||
Operating Segments [Member] | Corporate and Commercial Specialty | ||||
Disaggregation of Revenue [Line Items] | ||||
Total noninterest income | 11,445 | 12,683 | ||
Operating Segments [Member] | Community, Consumer, and Business | ||||
Disaggregation of Revenue [Line Items] | ||||
Total noninterest income | 74,223 | 74,036 | ||
Operating Segments [Member] | Risk Management and Shared Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total noninterest income | $ 5,533 | $ 3,661 | ||
|
Leases Components of Lease Expense (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Jan. 01, 2019 |
---|---|---|
Leases [Abstract] | ||
Operating lease right-of-use asset | $ 49,372 | $ 52,000 |
Finance lease right-of-use asset | 0 | |
Operating lease liability | 53,516 | $ 56,000 |
Finance lease liability | $ 0 |
Leases Operating Lease Information (Details) |
Mar. 31, 2019 |
---|---|
Lessee, Lease, Description [Line Items] | |
Weighted-average lease term (in years) | 7 years 3 months 10 days |
Weighted-average discount rate | 3.42% |
Equipment | |
Lessee, Lease, Description [Line Items] | |
Weighted-average lease term (in years) | 1 year 4 months 9 days |
Weighted-average discount rate | 2.73% |
Retail and corporate offices | |
Lessee, Lease, Description [Line Items] | |
Weighted-average lease term (in years) | 6 years 5 months 15 days |
Weighted-average discount rate | 3.43% |
Land | |
Lessee, Lease, Description [Line Items] | |
Weighted-average lease term (in years) | 12 years 2 months 8 days |
Weighted-average discount rate | 3.39% |
Leases Amortization of Operating Lease Liabilities (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Jan. 01, 2019 |
---|---|---|
Leases [Abstract] | ||
Nine Months Ending December 31, 2019 | $ 8,330 | |
2020 | 10,583 | |
2021 | 9,884 | |
2022 | 7,440 | |
2023 | 5,297 | |
Beyond 2023 | 20,110 | |
Total lease payments | 61,644 | |
Less: interest | 8,129 | |
Present value of lease payments | $ 53,516 | $ 56,000 |
Leases (Details Textuals) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2019
USD ($)
| |
Lessee, Lease, Description [Line Items] | |
Operating Lease, Cost | $ 2.9 |
Operating Lease, Payments | 2.8 |
Additional operating leases | $ 19.3 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating lease terms | 1 year |
Additional operating lease terms | 3 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating lease terms | 44 years |
Additional operating lease terms | 10 years |
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